Wall Street closed mixed on Monday after a choppy session. Market participants were waiting for a big week in which several key economic data will be released. Moreover, this week is a big one from first-quarter earnings perspective as various big corporates will release their quarterly financial numbers. The Dow and the S&P 500 ended in positive territory while the Nasdaq Composite finished in negative zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.3% or 114.09 points to close at 40,227.59. Notably, 21 components of the 30-stock index ended in positive territory and 9 finished in negative zone. The major gainer of the blue-chip index was The Boeing Co. BA.
The stock price of the global aerospace behemoth was up 2.4%. Boeing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite finished at 17,366.13, declining 0.1% due to weak performance of technology bigwigs. The S&P 500 was up 0.1% to finish at 5,528.75. The benchmark posted its fifth straight winning days. Nine out of 11 broad sectors of the broad-market index ended in positive territory and two in negative zone.
The Energy Select Sector SPDR (XLE) and the Real Estate Select Sector SPDR (XLRE) and the Utilities Discretionary Select Sector SPDR (XLU) rose 0.7%, 0.6% and 0.6%, respectively. On the other hand, the Consumer Staples Select Sector SPDR (XLP) fell 0.3%.
The fear-gauge CBOE Volatility Index (VIX) was up 1.3% to 25.15. A total of 17.05 billion shares were traded on Monday, lower than the last 20-session average of 19.26 billion. Advancers outnumbered decliners on the NYSE by a 2-to-1 ratio. On Nasdaq, a 1.27-to-1 ratio favored advancing issues.
Better-Than First-Quarter Earnings So Far
As of April 25, 179 companies of the S&P 500 index have reported their quarterly financial numbers. Total earnings for these 179 index members are up 18% from the same period last year on 4.2% revenue gains. Out of this, 69.8% of the companies beat EPS estimates and 63.7% beat revenue estimates. This week will be crucial for this reporting cycle as four members of the “magnificent 7” group will declare their results.
Tariffs Negotiations
U.S. stock markets are witnessing extreme volatility in April due to the imposition of the Trump administration’s tariffs. Although, negotiations between the United States and several other countries including China are ongoing, nothing positive has emerged so far.
The baseline tariff of 10% was imposed on all imports on April 5. However, the important thing is that tariff rates go up to as high as 145% for some countries (such as China), depending on the rate at which these governments levy duties on U.S. exports. China retaliated with 84% tariffs on all U.S.-made products effective April 10.
This seems to be the beginning of a global trade war. Economists and financial experts are highly concerned about the impact of these tariffs on U.S. economic growth, especially on inflation, which is already elevated and prolonged. Market participants fear a near-term recession in the U.S. economy.
On April 28, Treasury Secretary Scott Bessent refrained from giving any clarity regarding trade and tariff related negotiations between the United States and China. Last week, President Donald Trump said a negotiation with China is ongoing.
Meanwhile, Bessent has indicated that negotiations with several other major countries are going on positive directions. He further hinted that India could be the first country to make a deal with the United States.
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The Boeing Company (BA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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