17 Apr Market Fluctuate Due To Mixed News And Corporate Updates

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04-18

Due to the release of mixed news and corporate updates from some earnings, the stock market show some fluctuations at the indices level.

The S&P 500 close the session higher by 0.13% only one in the green, while NASDAQ declined by 0.13% and DJIA was the largest lagger with decline of 1.33% contributed by substantial earnings-related decline in UnitedHealth (UNH, Financial), which is a significant component of the price-weighted average.

The Russell 2000 gained 0.9%. The S&P Mid Cap 400 rose by 0.8%.Market breadth was positive, with advancing issues surpassing declining ones by a 3-to-1 ratio at the NYSE and a 2-to-1 ratio at the Nasdaq.

Financial Sector Made A Modest Recovery

Financials sector made a modest gain of 0.85% daily and 3.02% weekly as we saw some positive news from two upcoming fintechs.

$LendingClub(LC)$ gained 1.28% at end of trading session after it announced the acquisition of a San Francisco property for $74.5 million, which will serve as its new headquarters starting in Spring 2026. The purchase was fully funded through the company's balance sheet and is not expected to significantly impact its financial performance.

$SoFi Technologies Inc.(SOFI)$ closed 3% higher as it announced that it expanded its loan platform business by securing $3.2 billion in new commitments from Fortress Investment Group and Edge Focus. This move aims to meet growing borrower demand for personal loans and shift towards more fee-based revenue sources.

Labor Market Robust With Low Initial Jobless Claims

The low level of initial jobless claims suggests the labor market remains robust, which may positively influence April nonfarm payroll forecasts.

The Weekly Initial Claims cames in at 215K compared to consensus at 225K while previous was revised to 224K. Weekly Continuing Claims was 1.885 million while the previous was revised to 1.844 million.

Housing Report Shows Affordability issues from higher mortgage rates and building costs

The housing report show a decline in single-unit starts (-14.2%) and permits (-2.0%), likely due to affordability issues from higher mortgage rates and building costs.

March Housing Starts at 1.324 million, lower than the consensus at 1.418 million while the previous was revised to 1.494 million. The March Building Permits came in higher at 1.482 million with consensus at 1.455 million while the previous was revised to 1.459 million.

April Philadelphia Fed Index was much lower at -26.4 compared to the consensus at 10.0) while the previous was 12.5. The index for new orders dropped sharply to -34.2 from 8.7, indicating a significant decrease in demand. The prices paid index rose to 51.0 from 48.3.

We will be expecting the March Leading Indicators next.

Energy and Consumer Defensive Sectors Lead

The energy and consumer defensive sector led the pack with more than 2% gain, contributed by Dollar Tree (DLTR) and major energy producers, most gaining more than 2%.

Eli Lilly (LLYl) surged by 14.3% following positive trial results for its weight-loss drug, but did not help the healthcare sector though as it was dragged down by UnitedHealth (UNH) 22.4% decline.

In the tech sector, Google (GOOGL) faced legal challenges as a judge ruled that the company held a monopoly in online advertising technology markets. This decision was based on Google's dominance in publisher ad servers and ad exchanges, violating antitrust laws under the Sherman Act. Alphabet (GOOGL) fell by 1.4% after the Reuters report dragging the technology sector to -0.54%.

Yield Increase While Treasuries Losses

Treasuries ended with losses. The 2-year yield is at 3.77%, compared to 3.84% the previous market day and 4.97% last year. This is higher than the long term average of 3.23%.

The 10-year yield increased by five basis points today, settling at 4.33%, and decreased by 16 basis points over the week.

Stocks To Watch

$Netflix(NFLX)$ saw a 4% rise in its stock price after hours, following its first-quarter earnings announcement. The company exceeded expectations with a revenue of $10.54 billion and a diluted earnings per share of $6.61. Despite not reporting quarterly subscriber additions, Netflix highlighted a 13% year-over-year revenue increase and a 27% rise in operating income, attributed to subscription and advertising revenue growth. The operating margin improved to 31.7%, and the company anticipates further gains in the next quarter.

Netflix have finally showed that the bulls can defend the 12/26 EMA level and we are seeing promising RSI momentum, I would think that the bulls would attempt for a daily uptrend expansion next week, and I would think Netflix might be one of the defensive stocks we can bet on for tariffs resistance.

UnitedHealth (UNH) experienced a significant 22.4% drop in its stock price after posting a rare quarterly earnings miss due to high medical care costs. This led to a downward revision of its full-year profit outlook, affecting the broader health insurance sector, including Humana (HUM, Financial) and Molina Healthcare (MOH, Financial), which also saw declines in their stock prices.

$American Express(AXP)$ was also under the spotlight, with investors closely monitoring its performance following the release of Netflix's results. The financial services company remains a key component of the Dow 30, contributing to market dynamics.

Summary

I think we might still see market in a mixed mode next week as there would be some fluctuation as more and more negotiation outcome is being revealed, and more corporate earnings next week especially $Tesla Motors(TSLA)$ which might also have investors sentiment rocked.

We can pay attention to the consumer discretionary sector next week to see how TSLA earnings could have on this sector.

Appreciate if you could share your thoughts in the comment section whether you think market fluctuation would continue next week.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.

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