The Dow Jones Industrial Average fell just 39 points or 0.1% ending a bit lower on Monday as investors are still swimming amid the latest wave of quarterly reports. Today on the stage Bank of America, with its better than expected reports.
On the other side, NASDAQ lost 0.1% or 18,72 points and S&P 500 practically flat closing the session at -0.02%.
Bank of America (+3.41%). After closing the Friday session with a broken down and falling below the threshold, today after showing the results of Q2 share price soared.
The CEO of Bank of America said that he is expecting significant improvement in net interest income through the next several quarters as the FED is expected to increase the rates in the next few months.
The comments from management helped ease some fears about the shape of consumer after JPMorgan’s (+1.90%) quarterly results last week sparked concerns over the market.
The Treasury market was booming this week as investors awaited the Federal Reserve’s next move. The 10-year yield closed at 3% on Monday for speculation that tighter monetary policy will come soon.
The tech market was higher, but not by much. The Treasury yield rising has made long-term investments in this sector less attractive and caused a flat session for Big Tech stocks today.
Meta +0,28%, Microsoft +0,25%, Apple 0,13%.
Note of merit for NVIDIA (+2,47%) and Intel (+2,12%)
In the spotlight Twitter (+7,48%) which had another interesting day as it continues to dominate investor attention. The company launched a limited duration shareholder rights plan, or “poison pill” this morning in order stop Elon Musk’s bid from taking the social media platform private and Twitter causing a rise of 7%.
Musk’s gambit to take over Twitter could backfire big time if he doesn’t think ahead. The limited duration shareholder rights plan would allow other shareholders buy shares at a discount, diluting his stake and making it expensive for him acquire the company especially if he reaches the 15%.
Without doubt, very controversial is the ride-hailing company “Didi Global”. Their share price fell more than 18% after reporting a decline in fourth-quarter revenue and announcing that it would hold an investor vote to delist their shares on May 23rd.
An expensive energy cocktail instead is taking shape in the energy sector due to Libya cutting production and the prospect of a prolonger Russia-Ukraine war.
Valero Energy (+5.24%), Philips 66 (+5.20%) and CTRA (+4.59%) three of the top gainers of the category.
Health care depressed the broader market, paced by a decline in vaccine makers big of the sector included: Moderna (-6,49%) and Pfizer (-2,41%).
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