S&P and NASDAQ make record highs, Tesla and 3M drop more than 12% – Here’s what you need to know…

Stock Market Update Sunday, April 28th, 2019

With back to back wins on Monday and Tuesday, stocks got off to a strong start last week. 

But then trading got a little choppy.

The S&P and NASDAQ rallied to new highs on Wednesday then retreated. And on Thursday stocks were mixed.

On Friday, the major indices opened lower and quickly dropped. But stocks bounced right back after the rough start, and both the S&P and NASDAQ managed to finish with new record closes.

However, the DOW wasn’t so lucky.

The blue-chip index wasn’t able to join the party this week. The DOW finished the week with a loss after getting dragged down by disappointing earnings from companies like 3M (MMM).

Here’s what traders were focused on:

  • Earnings – Almost half of the S&P 500 companies have reported earnings. And according to FactSet, 77% have reported better numbers than estimates.
  • 1st Quarter GDP – Real GDP growth for the 1st Quarter was much better than expected. On Friday, the GDP release showed that Real GDP rose 3.2%. This was much higher forecasts, with estimates coming in between 2.2-2.5%.

Here’s where the major indices ended the week:

  • The S&P finished with a 1.2% gain. Up 35 points, the S&P ended at 2,940.
  • The DOW ended lower by 0.1%. Dropping 16 points, the DOW closed at 26,543.
  • The NASDAQ was up 1.9%. With a 148 point gain, the NASDAQ finished at 8,146.

Crude Oil (CL) retreated after trading above $66 a barrel for the first time since November 1st. Down 1.3%, CL ended at $63.24 a barrel.

Amazon (AMZN) finished higher by 2.5% after reporting strong earnings. Amazon also announced 1-day shipping for Amazon Prime members, which had an impact on other retailers. Wal-Mart (WMT) ended Friday with a 1.9% loss after the news, and Target (TGT) dropped 5.7%.

Ford (F) was another winner, up 10.7% after better than expected numbers. This was the biggest win since 2009 for Ford.

But there were some earnings losers as well.

Intel (INTC) lost 9.0% after issuing disappointing guidance. And energy earnings didn’t impress traders. Exxon Mobil (XOM) lost 2.1% and Chevron (CVX) dropped 0.7%.

Tesla (TSLA) was hammered last week after reporting a bigger than expected 1st quarter loss. The stock finished the week lower by 14.0%. And with the drop, Ford (F) took back the #2 spot as the 2nd most valuable U.S. automaker.

This upcoming week the Fed will be in the spotlight with the FOMC Statement release on Wednesday.

It will also be another busy week for earnings (the busiest so far). There are 164 S&P 500 companies scheduled to report (and 5 DOW stocks). The bigger names reporting this week are Alphabet (GOOG), Apple (AAPL), McDonald’s (MCD), Qualcomm (QCOM), and Pfizer (PFE).

Here is the economic calendar for the week:

Real Time Economic Calendar provided by Investing.com.

This Stock Market Update was provided by Rockwell Trading Services LLC.

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