Business News: Stock futures to rebound after new S&P 500 record high.
Equity futures opened slightly lower Thursday night after a record session earlier in the day, with strong earnings results and more encouraging economic data helping to support the latest high leg of risk assets.
Amazon (AMZN) shares rose in late trading after reporting first quarter results and indications for the current quarter exceeded expectations, with online shopping still booming even with the reopening of more in-person businesses. Actions of Twitter (TWTR), on the other hand, sank after its current quarter revenue drive fell short of estimates, disappointing investors who were hoping to see a stronger recovery in the company’s advertising sales to match the trends seen in social media companies like Snap (SNAP) e Facebook (FB).
Overall, companies accounting for around two-thirds of the S&P 500’s market capitalization have so far reported results, and 84% of these have exceeded estimates, according to data. from Credit Suisse analyst Jonathan Golub. Stocks hit new highs this week amid these signs of rebounding corporate earnings and economic activity, and after more dovish messages from the Federal Reserve. A new report Thursday showed that US gross domestic product increased at an annualized rate of 6.4% in the first quarter, taking overall production a considerable distance from its pre-pandemic levels.
Nio Inc. reported quarterly results and sales above Wall Street expectations on Thursday, but renewed investor concerns about its supply chain and the impact of the chip shortage plaguing the Chinese electric car maker and other auto makers. worldwide.
Wall Street financiers on Thursday cheered cautiously after hearing that New York City aims to fully reopen on July 1, craving the meetings and meals of working life before the pandemic, but also loathing the routine of mass transit, the elevators of the full offices and conventional clothing business. New York City Mayor Bill de Blasio on Thursday announced his intention to bring things back to normal. New York Governor Andrew Cuomo, who oversees the reopening decisions, expressed optimism that it could happen even before July 1.
While fears remain about rising inflation throughout the economy and possible tax hikes, investors have at least temporarily shelved these fears until further developments emerge on both fronts.
“The economic environment is still very encouraging. I think there are a lot of really strong upwinds behind this recovery, whether it’s the vaccination story, the fiscal stimulus story, and very clearly an earnings season that has gone very well, “Jack Manley, strategist, told Yahoo Finance. of the global market of JPMorgan Asset Management. “But it wouldn’t necessarily surprise me if the markets moved more or less sideways going forward.”
“This positive environment does not mean that the current period of low volatility will persist. We expect periods of market turbulence as investors are concerned about rising inflation and erratic global progress in the fight against the pandemic, “Mark Haefele, chief investment officer of global wealth management at UBS, wrote in a statement. With global stocks nearing all-time highs, the market is also likely to be vulnerable to disappointing economic news or COVID-19. “