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🎢 Flying, Then Dying
Stocks soared higher on the Fed's decision to hold interest rates, then fell sharply toward the close.
Brooks Dyroff
May 01, 2024
Happy Wednesday, Zingernation! The more things change, the more they stay the same. The calendar says it’s a new month, the weather is warming up, and my girlfriend has a new boyfriend, but hey. At least interest rates are staying put.
–Aaron Bry and Nic Chahine
Today’s Price Action:
$SPY: -0.32%
$QQQ: -0.72%
$DIA: +.20 %
Plus, if you’re looking to take your trading to the next level, check out today’s partner, Simply Wall St.
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TODAY’S MOST VOLATILE STOCKS
TODAY’S TOP STORY
Briefly: The Federal Reserve opted to keep the federal funds rate unchanged at 5.25% to 5.5% today, as widely expected, reinforcing its commitment to steering the economy toward sustainable growth and controlling inflation.
What Happened: Regarding the latest inflation dynamics, the Fed stated, "In recent months, there has been a lack of further progress toward the Committee's 2% inflation objective."
Why It Matters: The Fed said it does not expect it will be appropriate to cut rates until it has gained greater confidence inflation is moving sustainably toward 2%, throwing more cold water on the market’s rate cut hopes.
What Next: The Federal Open Market Committee has outlined a plan to gradually reduce its holdings of Treasury securities and agency debt, marking a shift toward normalizing its balance sheet.
Click here to read more.
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FIVE MOVERS
Coca-Cola shares moved slightly higher after an analyst updated their outlook for the soda company, following its earnings report.
Johnson & Johnson shares edged higher today after the company announced a plan to settle lawsuits over its talcum powder lawsuits.
Amazon stock closed higher by around 5% today following the tech giant’s strong earnings report yesterday afternoon.
Cannabis stocks had a tough day today, selling off after the group rallied yesterday on news of the DEA’s reclassification of marijuana.
AMD stock got crushed today following the chip company’s earnings report this afternoon. Here’s what’s going on.
ONE TRADE IDEA FOR TOMORROW
Briefly: Eli Lilly “could be on its way to becoming a $1 trillion market cap company,” according to analysts at Cantor Fitzgerald.
So Basically: The assessment comes on the heels of an earnings report that shows first-quarter revenue of $8.77 billion. That’s up 26% year-over-year, just marginally missing the consensus of $8.92 billion.
So Then: The Indianapolis-based company saw increases of 16% in volume and 10% in higher realized prices. Eli Lilly posted an adjusted EPS of $2.58, beating the consensus of $2.46, higher than $1.62 a year ago.
So What? Analysts responded positively. Cantor raised its price target from $815 to $885 with an Overweight rating, driven by earnings revisions. BofA reiterated the Buy rating with a price target of $1,000. Truist maintains the Buy rating with a price target increased from $850 to $892.
Click here to read the full breakdown.
PRESENTED BY SIMPLY WALL ST
Simply Wall St revolutionizes how individuals invest, empowering them to learn and apply the principles of long-term investing at every stage of their journey.
Visual stock screener: find stocks that match your criteria and get alerts for new stocks found.
Visual comprehensive stock reports: identify fundamental risks and opportunities in any business.
All your portfolios in one place: effectively analyze and track your investments.
Intelligent alerts: receive timely updates for new warning signs and opportunities.
“I believe that Simply Wall St is the best program out there. Not only do they provide all the analytic data you need but they display it in a user-friendly format that is actionable. They also provide weekly emails on what is going on with your portfolio, insider buying and selling, dividends analyst recommendations etc…”
— Michel Horne • Google Review