U.S. Indexes Move Higher Amid Strong Earnings, Elevated Inflation, and Slowing Economy

Barry Adams
29 Apr, 2024
New York City

Market indexes in Monday's trading edged higher on Wall Street as investors looked forward to key earnings releases, the Federal Reserve's rate decisions, and a labor market update. 

The S&P 500 index and the Nasdaq Composite advanced 0.2% following sharp gains in the previous week. 

The S&P 500 index gained 2.2% in the previous week and delivered the best weekly gain since November as investors warmed up after positive earnings from several leading large companies. 

The Nasdaq Composite advanced 3.5% in the previous week, delivered its best weekly return in five months, and halted its 3-week slide after Google and Microsoft reported solid earnings. 

This week, investors are looking ahead to quarterly earnings from 700 other companies, including Apple, Amazon, Coca-Cola, and McDonald's.

On the economic front, the Federal Reserve is widely expected to hold rates steady at the end of its two-day meeting on Wednesday. 

The central bank's statement and post-announcement conference are likely to provide more insights into policymakers thinking and outlook for economic growth and rate paths. 

Despite eleven rate hikes between March 2022 and July 2023, inflation is well anchored and above the Fed's target rate of 2%, and price pressure is showing no signs of easing. 

Nonfarm payrolls are scheduled to be released on Friday, providing key labor market updates and wage inflation pressures. 

 

U.S. indexes and yields

The S&P 500 index increased 0.2% to 5,135.19, and the Nasdaq Composite surged 0.3% to 15,990,38. 

The yield on 2-year Treasury notes edged higher to 4.99%, 10-year Treasury notes inched lower to 4.62%, and 30-year Treasury bonds edged lower to 4.74%.

WTI crude oil decreased $0.39 to $83.33 a barrel, and natural gas prices increased 2 cents to $1.94 a thermal unit.

Gold decreased by $2.39 to $2,334.95 an ounce, and silver rose 11 cents to $27.31. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.65.

 

U.S. Stock Movers

Domino's Pizza increased 7.2% to $535.01 after the pizza chain operator said it was improving gross margins at the company-owned stores in the U.S. and same-store sales picked up pace. 

Revenue in the quarter increased by $1.08 billion, and diluted earnings per share rose to $3.59. 

Tesla Inc. soared 12.3% to $188.88 after the company met a key regulatory requirement to roll out its self-driving technology in China. 

Koninklijke Philips N.V. jumped 38% to $28.92 after the Dutch medical device maker announced that it provisioned Є982 million to settle personal injury and medical monitoring claims, ending years of litigation uncertainty. 

The settlement amount was far less than the widely estimated range between Є2 billion and Є4 billion. 

The company agreed to the settlement without admitting any liability or causing any injuries.