U.S. Stock Indices: Breather After Soaring Highs
Eulerpool News·
After an impressive upward trend over the past few days, US stock markets reined in a bit on Friday. While the Dow Jones Industrial Average recorded a decline of 0.50 percent to 39,583.65 points, the S&P 500 also joined this breather with a slight loss of 0.03 percent at 5,240.09 points. The Nasdaq 100, however, climbed slightly by 0.23 percent to 18,361.72 points.
The recent statement by the Federal Reserve (Fed), which suggests a gradually less restrictive monetary policy without indicating a hasty easing, continues to resonate. A set of robust economic data further strengthened Wall Street's assumption that the Fed is pursuing a moderate course.
In the sports goods sector, interest focused on some significant individual stocks. Nike disappointed with a gloomy sales outlook, suggesting a low single-digit revenue decline for the first half of fiscal 2024/25. The announcement led to a 6.3 percent plunge in the stock price. Other sportswear companies followed this trend, with Under Armour experiencing a price drop of 2.3 percent. Lululemon, on the other hand, expects weaker sales figures than anticipated, as fewer customers visited US stores at the beginning of the year, leading to a 15 percent crash in its stock price.
There was a positive surprise at FedEx, where a significantly increased operating quarterly profit, partly through cost savings, led to a more than 7 percent jump in its share price. UPS, a competitor in the industry, also benefitted from the positive news and gained 1.3 percent.
Tesla, however, suffered a setback: its shares fell by 1.3 percent after reports leaked of a throttled vehicle production in China, which was reasoned by a slowed sales momentum and intensified competition in the important market.
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