Live Market Update: S&P 500 Opens Lower on Political Rumblings in Washington
Investing
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S&P 500 opens lower on Monday after a holiday weekend in which President Trump threatened to fire the head of the Federal Reserve.
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Smaller bank stocks continue to report positive Q1 earnings.
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Analysts see value in entertainment stocks including Disney, Spotify, and Norwegian Cruise Lines.
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Stock market indices opened lower Monday after a three-day weekend, over the course of which President Trump criticized, and even threatened to fire, Federal Reserve Chairman Jerome Powell over his reluctance to lower target interest rates. Meanwhile, in tariffs news, China is threatening “reciprocal countermeasures” against any country that reaches a tariffs deal with the U.S. that seems to be “at the expense of China’s interests.”
No wonder investors are nervous! Here’s how the major market indices are performing so far:
Dow Jones Industrial Average: Down 0.7%.
Nasdaq Composite: Down 1.5%.
S&P 500: Down 1%.
The Vanguard S&P 500 ETF (NYSEARCA: VOO) is likewise down 1%.
Earnings
Earnings reports this morning centered on financial stocks and were generally positive, with Comerica (NYSE: CMA) beating by a penny in its Q1 report, and Bank of Hawaii (NYSE: BOH) exceeding expectations by $0.08.
Washington Trust Bancorp (Nasdaq: WASH), however, missed analysts’ earnings forecast, reporting $0.61 per share, three cents worse than expected.
Analyst Calls
Wall Street analysts suggest investors look elsewhere for bargains, focusing on the entertainment sector. Among today’s notable upgrades, Loop Capital recommended buying Norwegian Cruise Line Holdings (NYSE: NCLH), and indeed said it is “favorably disposed to the entire cruise industry, as we think market share gains would be even more likely in a recession.”
Wolfe Research upgraded Walt Disney (NYSE: DIS) stock to outperform, setting a $112 price target and praising the company for its “durable advantages” in parks, cruises, and streaming. In similar vein, Wolfe upgraded Spotify (NYSE: SPOT) stock to outperform. The banker said Spotify is scoring “win-win” agreements with record labels, rolling out new products, growing subscribers, and raising prices, all of which should contribute to profit margin growth.
In less optimistic news, GLJ Research cut its price target on Tesla (Nasdaq: TSLA) stock below $20 this morning. Analyst Gordon Johnson predicts Tesla will miss its Q1 earnings targets badly, reporting only $0.25 per share, non-GAAP, versus the Wall Street consensus of $0.44.
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