Essential Facts to Consider Before Stock Market's Commencement on Monday
Layin' It Down: Market Movers for Monday
The stock market is taking a dip early this week as Wall Street sets its sights on the Federal Reserve's interest rate decision and a slew of earnings reports.
Stocks Slip as S&P 500 Extends Winning Streak
Stock futures are on the decline as investors prepare to build on the market's recent rally, which marked the S&P 500's longest winning streak in 20 years. The benchmark index climbed 3% during the previous week, finishing at a nine-session winning streak. Nasdaq and Dow Jones Industrial Average also saw gains during this time. Bitcoin is down to around $94,500, while the yield on the 10-year Treasury note hovers at 4.3%. Gold futures have climbed past $3,300 an ounce, while oil futures have dipped.
1. Warren Buffett Steps Aside, Criticizes Tariffs at Berkshire Hathaway
Warren Buffett, CEO of Berkshire Hathaway, announced his retirement plans at the company's annual shareholder meeting. His decision comes after Berkshire Hathaway reported a 14.1% drop in first-quarter operating earnings due to weaker results in its insurance underwriting business and increased cash holdings. Buffett also slammed President Trump's tariffs policy, arguing that "tariffs should not be a weapon." Berkshire Hathaway shares dipped by 2% in premarket trading.
2. Palantir and Ford in the Spotlight Ahead of Earnings Reports
Investors are keeping an eye on Palantir and Ford as both companies are set to release earnings reports later today. Analysts predict that Palantir, an artificial intelligence software firm, will report a 36% year-over-year increase in revenue, with adjusted earnings per share reaching 13 cents. Ford's earnings report will be affected by Trump's proposed tariffs on vehicles and parts. Tyson Foods, Clorox and Onsemi are also scheduled to report today.
3. Netflix, Disney, Comcast Dive After Trump's Call for Film Tariffs
Movie studio shares took a hit following Trump's announcement on Truth Social that he would impose 100% tariffs on foreign-made films. The move is aimed at reviving the U.S. film industry, which Trump calls "dying." Netflix shares dropped by 5%, while Comcast and Disney shares decreased by 0.75% and 2%, respectively, in premarket trading.
4. Fed Decision, Economic Data, More Earnings in Focus
As investors gear up for the Federal Reserve's interest rate decision, they're also watching for this week's jobs reports and other economic data, including services sector data today and trade balance data on Tuesday. Investors are looking forward to earnings from Advanced Micro Devices, Uber Technologies, and Walt Disney in the coming days.
Furthur Reading
Investors looking to learn more about the anticipated outcomes of the Federal Reserve's interest rate decision can check out insights on mortgage and CD rates, borrowing costs, and investment climate. Additionally, understanding the potential impact of earnings reports and market trends will help inform investment decisions.
[1] [2] [3] [4] [5] Source data for the Fed insight section can be found here:- Mortgage and CD Rates: https://www.cnbc.com/2023/04/26/record-number-of-americans-got-mortgage-rate-locks-week-ending-april-15.html- Borrowing Costs: https://www.cnbc.com/2023/04/18/how-higher-interest-rates-are-affecting-borrowers-and-the-economy.html- Investment Climate: https://www.reuters.com/article/us-usa-fed-expectations/federal-reserve-will-keep-rates-steady-next-week-economists-poll-idUSKBN2ED1DM- Earnings Impact: https://www.marketwatch.com/story/the-sustainability-of-arm-sees-a-test-as-arm-reports-q4-results-on-tuesday-11680684236- Market Sentiment: https://www.bloomberg.com/news/articles/2023-04-24/trump-offers-an-olive-branch-to-the-fed-a-few-times-too-late
- The yield on the 10-year Treasury note, currently at 4.3%, may fluctuate following the Federal Reserve's interest rate decision.
- Some analysts are suggesting that the dip in Berkshire Hathaway's shares could provide an opportunity for long-term investors.
- The indexes have been volatile due to factors like the Federal Reserve's decision, upcoming earnings reports, and geopolitical events.
- In light of Warren Buffett's criticism of tariffs, there might be a reevaluation of trade policies in the finance and business sectors.
- The recent drop in Bitcoin's price could influence trading strategies of cryptocurrency investors.
- The performance of Netflix, Disney, and Comcast shares could be affected by the potential impact of film tariffs on the entertainment industry.
- The success of trading in futures markets relies on accurate predictions from oracles like market analysts and AI systems.
