The major indexes extended their weekly winning streaks, although worse-than-expected indicators of consumer sentiment held back stocks on Friday. Price trends could accelerate next week due to several key inflation indicators and Fed Chairman Jerome Powell’s appearance in the minutes.
The major indexes started this morning pleasantly higher, but fell to their lowest in trading after the University of Michigan announced that its consumer confidence index in May fell to 67.4 from 77.2 in April. .
“Consumers have suspended their judgment over the past few months, but are now recognizing negative developments on many fronts.” The report said:. “They have inflation, unemployment and Interest level Everything could go in a negative direction over the next year. ”
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The data also showed that both short-term and long-term inflation expectations rose slightly this month.
Consumer confidence was a ‘double whammy’ for the Fed, says Chief Investment Officer Chris Zaccarelli Independent Advisor Alliance. If consumer spending slows and inflation accelerates, “we would end up with the opposite of the Goldilocks scenario that many expected. “This puts us in a particularly difficult position where we have to make a choice,” Zaccarelli said. I will explain.
Sweetgreen soars after beat-and-raise quarter
Market participants also took a look at this week’s final corporate earnings reports.fast casual restaurant chain sweet green (Singapore) soared 34% after the company beat sales and raised its full-year forecast. SG also announced that it will be rolling out the steak option nationally for the first time after a successful trial in Boston.
“We believe SG represents an early-stage generational growth story with the model in the early stages of a strong revision cycle,” Oppenheimer analysts said. brian bittner (Outperform, equivalent to Buy), adding that Sweetgreen’s quarterly results are “consistent with our ‘Top Pick’ theory.”
Novavax more than doubles in partnership with Sanofi
Novavax (NVAX) also saw a notable post-earnings rally, nearly doubling in value (+98.9%) on Friday. The pharmaceutical company announced a 16% year-over-year increase in first-quarter revenue and a narrowing of its net loss from the first quarter of 2023; New $1 billion licensing deal and sanofi (SNY, +1.2%) caught fire under NVAX.
Under the terms of the agreement, Sanofi will sell Novavax’s current coronavirus vaccine and the two companies will jointly develop a combination coronavirus and influenza vaccine.
On the negative side of accounting, Akamai Technologies (AKAM) fell 11% after the cloud services company’s first-quarter revenue fell short of expectations and its second-quarter outlook offset first-quarter profit growth.
The main indicators are: Dow Jones Industrial Average It closed at 39,512, up 0.3%, marking the eighth consecutive year of gains. S&P500 rose 0.2% to 5,222. Nasdaq Composite It fell 0.03% to 16,340. It was the third consecutive week of wins for the S&P 500 and Nasdaq, and the fourth consecutive week of wins for the Dow.
Powell, CPI, and Walmart earnings announcements
Next week is packed with content economic calendar And notable earnings lineups can cause stock market fluctuations. Investors are most interested in Fed Chairman Jerome Powell’s speech early Tuesday morning. Updates on wholesale prices are also expected to be released on the same day, with the consumer price index (CPI) for April scheduled to be released on Wednesday morning.
Investors will also learn how the persistence of inflation is impacting consumer spending behavior thanks to quarterly results from blue-chip retailers. home depot (HD, -0.3%) and walmart (WMT, +0.1%).
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