2 hours ago
Earnings outlook must improve for broader market rebound, wealth manager says
Despite strong gains for the Nasdaq Composite and S&P 500 so far this year, corporate earnings need to recover for the market rally to broaden, according to Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management.
“Earnings need to improve in order to see any kind of broader gains in the stock market, as the S&P 500 has had three consecutive quarters of year-over-year earnings slowdowns,” Landsberg said.
“The markets have had a good run, particularly in technology, and needed time to calm down, which is partly why we have seen broader market declines in the last two months. Higher interest rates and money markets create more competition for stocks, which increases pressure on the market,” he added.
According to Landsberg, the company rebalanced its client portfolios in the summer to reduce exposure to the technology, given its dramatic rebound over a six-month period.
“This is a normal cycle activity with some sectors warming up and others cooling down,” Landsberg said.
2 hours ago
Stocks make biggest moves on Tuesday after hours
These are some of the stocks making the biggest moves in extended trading.
Costco: shares fell almost 2% despite the company destination profits and income higher than those of the previous quarter. The company posted earnings of $4.86 per share on $78.94 billion in revenue. Analysts had estimated earnings per share of $4.79 on $77.09 billion in revenue, according to LSEG. Meanwhile, e-commerce sales fell 0.8% compared to the same period a year earlier.
MillerKnoll: Shares of the furniture company rose 16.2% after it reported its fiscal first-quarter 2024 earnings. MillerKnoll beat analyst estimates for earnings and revenue in the previous quarter, its revenue guidance for the second quarter was softer than expected.
AAR Corp: Shares of the aviation services company gained 2.4% after beating analyst forecasts for earnings and revenue in the first quarter of fiscal 2024. The company reported $550 million in quarterly sales, a 23% more than the previous year.
3 hours ago
Stock futures rise slightly on Tuesday
US stock futures rose on Tuesday.
Futures linked to the Dow Jones Industrial Average added 46 points, or 0.13%. Meanwhile, S&P 500 and Nasdaq 100 futures rose 0.13% and 0.06%, respectively.