The US stock market has closed out the first quarter of 2024 with its best performance since 2019, with the Dow Jones Industrial Average jumping by 5.6%, the S&P 500 surging by 10.2%, and the Nasdaq Composite experiencing gains of 9.1% [e67244c5]. This strong performance is significant considering the impact of the pandemic on global supply chains [e67244c5]. Despite speculations of a rate hike, the inflation rate has been inconsistent and has not matched analysts' expectations [e67244c5]. The Federal Reserve left rates unchanged in their recent meeting but indicated a potential rate cut in the future [e67244c5]. Tech companies, particularly Nvidia, have seen significant growth and advancement [e67244c5]. In the last week of March, the Dow Jones gained 0.12%, the S&P 500 gained 0.11%, and the Nasdaq lost 0.12% [e67244c5].
The market surge is driven by the continued strength of the economy, with consumers continuing to open up their wallets [84bba00d]. The Dow's strength suggests the current rally in stocks might have staying power [84bba00d]. Companies linked to the financial sector, such as American Express and Travelers, saw gains [84bba00d]. Wall Street firms have been increasing their year-end price targets, reflecting growing optimism [84bba00d]. The Federal Reserve is expected to pursue three rate cuts in 2024 [84bba00d].
Investors have confidence in a 'soft landing' for the economy, with 62% of fund managers predicting this outcome [b0764116]. The dovish Federal Reserve meeting earlier this month, in which the central bank kept its view of three interest rate cuts this year, has also encouraged investors [b0764116]. Despite rising Treasury yields, stocks have been able to defy the pressure, and stock valuations have climbed to their highest level in more than two years [b0764116]. The rally has been led by megacap companies like Nvidia and Meta Platforms, but other sectors like tech, communication services, energy, financials, and industrials have also performed well [b0764116]. Investors are looking for opportunities outside of Big Tech and are anticipating lower interest rates later this year [b0764116]. The increasing use of AI has also driven gains in chipmakers and tech stocks [b0764116]. Overall, the stock market has had its biggest first-quarter gain since 2019 [b0764116].
In other news, RH shares have soared after the company's forecasts exceeded expectations [910689e1]. Mortgage rates are hovering near 7% [910689e1]. Consumers are more confident that inflation is on the decline [910689e1]. Nikola shares have also surged after the company unveiled plans for the first commercial hydrogen fueling station [910689e1]. FTX co-founder Sam Bankman-Fried has been sentenced to 25 years in prison for defrauding investors [910689e1]. Bitcoin has traded back above $71,000 [910689e1]. Pending home sales show slow and steady progress [910689e1]. Tesla stock is the worst performer among the 'Magnificent 7' companies year to date [910689e1]. AMC shares have tanked on the potential stock sale [910689e1]. The energy sector has outperformed in March [910689e1]. General Motors CEO Mary Barra has discussed the complexity of making electric vehicles at scale [910689e1].
The S&P 500 closed at a record high, marking its 22nd record this year, after a US$4 trillion surge in U.S. equity values in just three months [4c1ed9d2]. The quarterly rally of over 10% has startled doomsayers, while leaving strategists scrambling to update their 2024 targets [4c1ed9d2]. The S&P 500 is blowing past milestones this year, even as the rally leads some to worry about the market running too hot [4c1ed9d2]. The relative strength index of the benchmark gauge has closed above a value of 50 for 100 straight trading sessions, suggesting the momentum will continue [4c1ed9d2].
Apple plans to launch its new iPads in early May [4c1ed9d2]. Home Depot expects to take on $12.5 billion of debt to fund its purchase of SRS Distribution [4c1ed9d2]. Walgreens narrowed its fiscal 2024 guidance citing a challenging retail environment [4c1ed9d2]. B. Riley Financial gained extra time to supply missing financial data to its lenders [4c1ed9d2]. Palantir Technologies was cut to sell at Monness, Crespi, Hardt & Co [4c1ed9d2]. Estee Lauder was raised to buy at Bank of America [4c1ed9d2]. Country Garden warned it will miss a deadline for reporting annual results [4c1ed9d2].
The Canadian economy is on track to beat first-quarter forecasts [4c1ed9d2]. A group of Canadian business leaders is calling on the government to amend the rules governing pension funds to encourage them to invest in Canada [4c1ed9d2]. Labour participation rates among immigrants in Canada exceed those born in Canada [4c1ed9d2]. Economists say Canada's latest economic data shows the country is surprisingly strong [4c1ed9d2].
The S&P 500 closes out the first quarter with its best start since 2019 [048cb79c]. Top banking economists predict three Fed interest-rate cuts this year, starting in June [048cb79c]. Good Friday's PCE data brings a crucial inflation reading, but markets are closed [048cb79c]. U.S. monthly jobs data and German inflation figures are in focus for investors [048cb79c]. Both the S&P 500 and the Vix rose in the stock market this quarter [048cb79c]. Gas prices are expected to rise but not to $4 a gallon [048cb79c]. ETF flows in the first quarter reflect investor hopes for a 'soft landing' [048cb79c]. The final reading of U.S. growth in the fourth quarter of 2023 is 3.4% [048cb79c]. Consumer sentiment climbs to a 2 1/2-year high as inflation eases [048cb79c]. The Chicago Business Barometer weakens for the fourth straight month in March [048cb79c].
Fortinet is expected to outperform this week as the cybersecurity solutions provider hosts its highly anticipated 'Accelerate 2024' event, at which it is likely to show off its latest advancements in AI applications [2126a0bd] [40c10e27]. Tesla is expected to suffer a disappointing week ahead as the struggling electric vehicle maker's first quarter delivery numbers will likely underwhelm investors due to the negative impact of various headwinds on its business [2126a0bd] [40c10e27]. Tesla shares plunged 29% in the first quarter to earn the dubious title of the worst performing stock in the S&P 500 during the first three months of 2024 [2126a0bd] [40c10e27]. Wedgewood Partners, a money manager founded in 1988, reported that the S&P 500 Index gained +10.5% during Q1 2024 [a8cdde3a]. Top performance contributors for the quarter include Meta Platforms, Taiwan Semiconductor Manufacturing, Tractor Supply, Edwards Lifesciences, and Copart [a8cdde3a]. The Magnificent Seven stocks (Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla) continue to perform well [a8cdde3a]. PayPal's stock has experienced negative sentiment, but the company's fundamentals remain strong [a8cdde3a]. The U.S. economy has adjusted well to the post-ZIRP financial environment [a8cdde3a]. Market expectations have changed, with growing expectations that the Federal Reserve might not cut the Federal Funds Rate this year [a8cdde3a].
Lockheed Martin (LMT) is an American defense and aerospace company known for its aeronautical research and development. It is the U.S. government’s largest defense contractor, receiving over 11% of all U.S. Department of Defense spending in 2022. In Q4 2023, Lockheed Martin exceeded analyst expectations, reporting an EPS of $7.58, compared to $7.40 per share in Q4 2022. Free cash flow also saw healthy growth, jumping 42% to $1.7 billion. Additionally, the company’s order backlog reached a record $160.6 billion, and 2023 net sales increased to $67.6 billion [f275a92f].
Alphabet Inc (GOOG, GOOGL), Google’s parent company, is a tech giant with a $1.78 trillion market cap. GOOG experienced decent growth in Q4 2023. The company reported $86.31 billion in revenue, a 13.49% year-over-year (YOY) increase. Net income and diluted EPS increased over 50% YoY, hitting $20.69 billion and $1.64 billion [f275a92f].
Square (SQ) operates through two main segments: Square and Cash App. Square focuses on providing tools to merchants, such as payment terminals and payroll management. Meanwhile, Cash App provides users with various payment and wealth management services. The global fintech market is projected to be worth $1.15 trillion in 2032, exhibiting a CAGR of 16.5%. According to, the company has penetrated its addressable market by less than 5%, showing Square's growth potential. For 2024, management forecasts $8.65 billion in gross profit, a YOY growth of over 15% [f275a92f].
Fortinet, Inc. (NASDAQ:FTNT) has seen significant share price movement on the NASDAQGS, rising to highs of US$73.07 and falling to lows of US$60.62. The current trading price of US$63.40 may be undervalued, providing an opportunity to buy. Fortinet's intrinsic value is $102.89, indicating potential for future growth. Shareholders may consider accumulating more holdings in the stock, while potential investors may find it a good time to enter. However, it's important to consider other factors such as financial health and risks before making investment decisions.