Stock market rotation out of software and tech led to Nasdaq and S&P 500 closing lower, while the Dow gained +0.9% over the past five days. Amgen and 3M saw strong earnings, boosting their stocks.
Services PMI reports for January exceeded expectations, with S&P at +52.7 and ISM at +53.8%. ADP report also supported solid growth in the private sector.
Alphabet surpassed Q4 earnings estimates with $2.82 per share and $97.23 billion in revenues. Strong growth in Cloud and Search Ad Revenue, but cautious outlook on over-investment in AI.
Qualcomm reported mixed Q1 results with earnings of $3.50 per share but lower revenues than expected. Decline in memory chips affecting current-quarter guidance.
e.l.f. Beauty posted impressive fiscal Q3 numbers, with earnings of $1.24 per share and $490 million in revenues, driven by recent acquisitions. Shares initially spiked but settled down after the announcement. 1. The stock market experienced a significant drop today, with the S&P 500 falling by 3% and the Dow Jones Industrial Average losing over 700 points. This decline was attributed to concerns over rising inflation and a potential interest rate hike by the Federal Reserve.
2. A new study has found that the effectiveness of the Pfizer-BioNTech COVID-19 vaccine drops to 84% after six months. This data suggests that booster shots may be necessary to maintain immunity against the virus, especially as new variants continue to emerge.
3. In international news, tensions between China and the United States have escalated as Chinese military aircraft entered Taiwan’s air defense identification zone for the sixth time in just over a week. The U.S. has condemned these actions, calling them provocative and destabilizing.
4. On the economic front, the U.S. economy added 943,000 jobs in July, exceeding expectations and marking a significant improvement from the previous month. This positive job report has raised hopes for a strong economic recovery as businesses continue to reopen and consumer confidence grows.
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