Stocks are set to open higher on Friday, aiming for a third consecutive week of gains. The S&P 500 and Nasdaq Composite both posted gains on Thursday, with the Dow Jones Industrial Average leading the way with a 0.9% increase. Utility stocks have been performing well recently, surprising many traders. All three indices are up by at least 3.5% for the month, signaling overall positive market sentiment.
Amid a relatively quiet week for earnings and economic data, stories about companies such as Peloton and U.S. Cellular have made headlines. Reports suggest that private equity firms may be looking to purchase Peloton, while T-Mobile and Verizon are considering buying U.S. Cellular. The market has been driven by strong earnings this quarter, with companies announcing significant stock buybacks. Meta Platforms and Apple have been leading the way in stock repurchases, with Apple planning to buy back $110 billion of its own shares.
Stock buybacks have become a key theme in the market, providing companies with a “company-specific put” that supports stock prices. Investors are also closely watching interest rates, with hopes that the Fed will cut rates in the second half of the year. The Bank of England’s decision to leave rates unchanged but hint at future cuts has further fueled expectations of rate cuts. Individual stocks like Sweetgreen and Roblox have seen significant price movements based on their recent earnings reports.
Today, a new Electric Vehicle (EV) company, Zeeker, is set to begin trading on the market. The company priced its IPO at the high end of the range at $21 per share, and investors are eager to see how the stock performs, especially with recent weakness in Tesla and concerns over the entire EV sector. The market has been relatively stable lately, with the VIX trading just over 12.5. This market environment has been favorable for long-term investors, but challenging for traders seeking short-term opportunities.
Looking ahead, next week is expected to bring more activity to the market as retailers like Walmart report earnings and inflation data is released. The Producer Price Index (PPI) and Consumer Price Index (CPI) reports will provide insight into inflation trends. It is important for investors to stick to their long-term investing plans and objectives amidst market fluctuations. This article is for educational purposes only and does not constitute trading or investment advice.
