Consumer sentiment falls to six-month low, stock price rise stumbles

U.S. stocks lost momentum in Friday morning trading as consumer sentiment hit a six-month low.

The Dow Jones Industrial Average (^DJI), which is aiming for its 8th straight victory, maintained an increase of about 0.2%, and the benchmark S&P 500 index (^GSPC) remained above the flat line just after closing above 5,200 for the first time. ing. In a month. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, fell by about 0.1%.

The University of Michigan's latest consumer sentiment survey, released Friday, found that overall sentiment fell 13% during May. The same month's index fell to 67.4, the lowest level in six months, and was well below economists' expectations of 76.2.

The drop in sentiment comes as investors debate the future of rate cuts amid recent signs that the labor market is cooling.

read more: How does the labor market affect inflation?

In light of this, investors will be listening closely to Fed speakers on Friday for more insight into the timing, pace and likelihood of policy easing. Michelle Bowman, Neel Kashkari, Austan Goolsby and others are scheduled to appear.

Earlier, Atlanta Fed President Rafael Bostic said he expected a unilateral rate cut before the end of the year, but fellow officials said they would wait for more solid signals that price pressures were easing. I agreed with Mr. Daly's wishes.

On the corporate side, shares of TSMC (TSM), a major Taiwanese contract semiconductor manufacturing company, soared after the company announced that its sales rose 60% in April. It was assessed that demand for AI is continuing, coupled with the revival of home appliances such as smartphones.

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Friday, May 10, 2024, 9:35 a.m. (Pacific Daylight Time)

China's EV stocks fall on Biden's tariff plan

US-listed Chinese electric vehicle manufacturers such as NIO (NIO), Li Automobile (LI), and Xiaopeng (XPEV) are under pressure from President Biden's plan to impose tariffs on strategic Chinese industries such as EVs, batteries, and solar power. Stocks fell on Friday following the news. cell.

According to Bloomberg, current tariffs will remain in place and are expected to be announced as early as next week.

Another Wall Street Journal report said the administration plans to “nearly quadruple” the levy.

The development comes ahead of a crucial election year in which China's economic power will be a focus.

Biden announced last month that he would impose 25% tariffs on Chinese steel and aluminum. President Trump has vowed that if he is re-elected, he will impose a 60% tariff on all imports from China, a blow to Beijing.

“Instead of correcting wrong practices, the US continued to politicize economic and trade issues,” ministry spokesman Lin Jian said on Friday. “Raising tariffs further would be an added insult.”
Friday, May 10, 2024, 8:50 a.m. (Pacific Daylight Time)

Stock prices slump due to double-digit decline in consumer sentiment

U.S. stocks lost momentum in early afternoon trading Friday as consumer sentiment hit a six-month low.

The Dow Jones Industrial Average (^DJI), which is aiming for its eighth straight victory, maintained an increase of about 0.1%, and the benchmark S&P 500 index (^GSPC) remained above the flat line just after closing above 5,200 for the first time. ing. In a month. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, fell by about 0.2%.

The University of Michigan's latest consumer sentiment survey, released Friday, found that overall sentiment fell 13% during May. The same month's index fell to 67.4, the lowest level in six months, and was well below economists' expectations of 76.2.
Friday, May 10, 2024, 8:05 a.m. (Pacific Daylight Time)

Stocks trending in early trading: Novavax, TSM, Nvidia

Here are the stocks listed on Yahoo Finance's trending ticker page early Friday morning:

Novavax (NVAX): The company's stock soared more than 130% on Friday after announcing it had reached a $1.4 billion deal with French company Sanofi to co-commercialize its current COVID-19 vaccine worldwide. .

Taiwan Semiconductor Manufacturing Company (TSM): Shares rose about 5% on Friday after the chipmaker said April sales jumped 60% from a year earlier, suggesting sustained demand for AI-powered chips. TSM is a major supplier to tech giants including: Nvidia (NVDA)and AMD (AMD)rebelled in response to the TSM results.

sound hound (early clouds): Shares of the artificial intelligence company rose more than 15% after posting 73% revenue growth in the first quarter, boosting its full-year 2024 earnings outlook. The company's CEO, Keevan Mohajasaid, said voice AI is quickly becoming an essential tool. For customer service.

Sweet green (Singapore): Shares rose 40% Friday after the fast-casual salad chain reported better-than-expected first-quarter profits and boosted its full-year outlook due to higher menu prices. The company also promoted a new steak menu that was officially added to the menu on May 7, and same-store sales rose 5% in the quarter due to higher prices.
Friday, May 10, 2024, 7:19 a.m. (Pacific Daylight Time)

Consumer sentiment slumped in May as inflation and interest rate concerns take hold

Americans are increasingly concerned about persistently high inflation and the prospect of high interest rates lasting longer than initially expected.

The University of Michigan's latest consumer sentiment survey, released Friday, found that overall sentiment fell 13% during May. The same month's index fell to 67.4, the lowest level in six months, and was well below economists' expectations of 76.2.

Friday's report showed inflation expectations for the previous year were 3.5%, up from 3.2% the previous month. Long-term inflation expectations rose to 3.1% from 3% last month.

“Consumers have been withholding judgment for the past few months, but are now recognizing negative developments on a number of fronts,” Joan Hsu, director of consumer research, said in a statement. “They expressed concern that inflation, unemployment and interest rates could move in an unfavorable direction over the next year.”
Friday, May 10, 2024 6:31 a.m. (Pacific Daylight Time)

Stock prices start rising.Dow aims for eighth straight day of gains

Stocks started higher on Friday, with the Dow Jones Industrial Average (^DJI) looking to end the week on an eight-game winning streak after a particularly weak market in April.

At the opening bell, the Dow rose about 0.2%, while the benchmark S&P 500 Index (^GSPC) rose about 0.3% after closing above 5,200 for the first time in a month. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, also rose by about 0.2%.

The benchmark 10-year Treasury yield (^TNX) rose about 4 basis points to trade around 4.49%.

Investors appear to be increasingly convinced that the Federal Reserve may cut interest rates sooner than expected after April's jobs report showed signs of a cooling labor market. This rise occurred.

The presence of a number of Fed speakers at Friday's meeting could provide more clarity on the future direction of interest rates. Michelle Bowman, Neel Kashkari and Austan Goolsby are set to star.
Friday, May 10, 2024 4:37 a.m. (Pacific Daylight Time)

travel trends

Citi did a little mining of earnings calls today, pointing to notes from this week's AirBNB (ABNB) conference call.

“The number of accommodation bookings in Paris during the Summer Olympics is five times higher than at this time last year, and Germany is seeing a similar trend for this summer's Eurocup, with bookings almost double compared to last year. .”
Friday, May 10, 2024, 2:05 a.m. (Pacific Daylight Time)

Morning market statistics you need to know

The pleasant atmosphere in the market continues to grow and the sense of well-being begins to increase.

The S&P 500 index has maintained its upward trajectory for three consecutive weeks for the first time since February. Moreover, as Deutsche Bank notes, this was the benchmark index's strongest performance in six sessions so far this year. The S&P 500 has risen 3.9% from its recent low on May 1st.