The S&P 500 and Nasdaq continue to record gains, but the Dow Jones Industrial Average (DJIA) ended the trading session lower amid the earnings season and investors’ concerns regarding the ongoing conflict in Ukraine.
Diplomats representing Ukraine, Russia, the European Union and the United States in Geneva signed an agreement to take steps to de-escalate the conflict. Russian President Vladimir Putin said that he is hoping that he won’t have to send troops.
Numerous news headlines have trumpeted major concerns about inflation, which has been at 40-year highs. But how should investors handle inflation as it pertains to their portfolios? At the Morningstar Investment Conference on Monday, Kevin Dreyer, co-CIO of Gabelli Funds, outlined some guidelines for investing in the age of inflation. Historic inflation Dreyer started by Read More
Terry Morris, a senior equity manager at National Penn Investors Trust Co. told Bloomberg, “Any deceleration of the conflict will be a relief for the market. Combine the ease of the tension between Russia and Ukraine and generally a positive tone of earnings, the result is an upward drifting market.”
According to Bloomberg, 25 companies listed in the S&P 500 reported earnings results today. Analysts estimated that the earnings per share of the index’s members rose 0.7% in the first quarter, which is lower than the 6.6% estimate in the beginning of this year.
Gerry Paul, chief investment officer at AllianceBernstein LP opined, “The market, with the sell-off and some downward revisions to estimates, maybe set itself for better reactions to earnings than it might have been the case earlier. Broadly, what we’re going to learn from earnings is that we’re pretty much on the trajectory of what the market expect it to be on.”
- Dow Jones Industrial Average (DJIA)- 16,408.54 (-0.10%)
- S&P 500- 1,864.85 (-0.14 %)
- NASDAQ- 4,095.52 (+0.23%)
- Russell 2000- 1,139.26 (+0.66%)
- EURO STOXX 50 Price EUR- 3,155.81 (+0.53%)
- FTSE 100 Index- 6,625.25 (+0.62%)
- Deutsche Borse AG German Stock Index DAX- 9,409.71 (+0.99%)
Asia Pacific Markets
- Nikkei 225- 14,417.53 (-0.00%)
- Hong Kong Hang Seng Index- 22,760.24 (+0.28%)
- Shanghai Shenzhen CSI 300 Index- 2,224.80 (-0.35%)
Stocks in Focus
The stock price of Chipotle Mexican Grill, Inc. (NYSE:CMG) declined nearly 6% to $519.61 per share today despite reporting strong earnings results for the first quarter. The company achieved $2.64 earnings per share, up by 7.8% and $904.2 million revenue, an increase of 24.4%. The earnings of the company fell short of the $2.86 earnings per share expected by analysts at Thomson Financial Network. Its revenue was higher than their $873.8 million estimate.
The shares of General Electric Company (NYSE:GE) climbed 1.68% to $25.56 per share after reporting better-than-expected quarterly earnings and a better outlook. The company generated $0.33 earnings per share, one cent higher than the $0.32 consensus estimate. Its revenue was 34.2 billion, slightly lower than the $34.4 billion average estimate.
SanDisk Corporation (NASDAQ:SNDK) rose more than 9% to $82.99 per share after the company raised its gross margin forecast. The maker of flash memory for mobile devices reported a 62% increase in net income to $268.9 million or $1.14 earnings per share. Analysts expected the company to deliver $1.08 earnings per share.