The stock market experienced a significant rally, bouncing back from recent declines. The S&P 500 surged 2.1%, the Dow Jones Industrial Average rose by 674 points (1.7%), and the Nasdaq Composite advanced 2.6%.
The market's favorable movement was largely driven by a buy-the-dip mentality following recent losses. Key catalysts included:
- Reduced likelihood of a government shutdown after Senator Chuck Schumer's commitment to vote for continued funding.
- Improved US-Canada trade relations following a productive meeting between Ontario Premier Ford and Secretary of Commerce Lutnick.
- Speculation on imminent policy stimulus from China to boost domestic consumption.
- The S&P 500 closing in correction territory, marking a 10% decline from its all-time high on February 19.
Mega cap stocks provided crucial support to the index. Notable performers included NVIDIA (NVDA, Financial) at $121.67, up by $6.09 (+5.3%), and Tesla (TSLA, Financial) at $249.98, up by $9.30 (+3.9%).
Despite issuing disappointing guidance, Ulta Beauty (ULTA, Financial) at $357.48, up by $43.01 (+13.7%), and DocuSign (DOCU, Financial) at $85.76, up by $11.06 (+14.8%), traded significantly higher during the broad market advance. ULTA cited consumer uncertainty and disappointing full-year guidance, while DOCU provided Q1 and full-year revenue guidance below consensus estimates.
The market largely ignored a weak economic report. The preliminary University of Michigan Index of Consumer Sentiment for March fell to 57.9 from February's final reading of 64.7, marking the third consecutive drop. A year ago, the index was at 79.4.
Gold prices settled above $3,001.00/oz, reflecting ongoing safe-haven trading. Meanwhile, the 10-year yield increased by three basis points to 4.31%, and the 2-year yield rose by seven basis points to 4.02%.
- Dow Jones Industrial Average: -2.5% YTD
- S&P 500: -4.1% YTD
- S&P Midcap 400: -6.2% YTD
- Nasdaq Composite: -8.1% YTD
- Russell 2000: -8.3% YTD
Today's economic data review:
- March Univ. of Michigan Consumer Sentiment - Prelim 57.9; Prior 64.7
- The report highlights that the decline in sentiment was widespread across age, income, wealth, political affiliations, and geographic regions, with inflation concerns and policy uncertainty as key factors.
Looking ahead to Monday, market participants will receive data on March Empire State Manufacturing (prior 5.7), February Retail Sales (prior -0.9%), and Retail Sales ex-auto (prior -0.4%) at 8:30 ET; and January Business Inventories (prior -0.2%) and March NAHB Housing Market Index (prior 42) at 10:00 ET.
Guru Stock Picks
Carl Icahn has made the following transactions:
- Add in CVI by 0.43%
Today's News
The Michigan consumer sentiment index for March plunged to 57.9 from 64.7, marking a significant drop below the consensus of 63.0. This decline reflects heightened unemployment fears reminiscent of the 2007-2009 recession. Samuel Tombs of Pantheon Macroeconomics noted that consumer confidence has been severely impacted by economic policy uncertainty and falling stock prices, suggesting a potential slowdown in consumption growth to 0.5% in Q1.
Palantir (PLTR, Financial) shares surged 8% following AIPCon 6, where the company showcased advancements in its artificial intelligence platform, AIP. CEO Alex Karp highlighted the importance of tools like Foundry and Ontology in optimizing company operations. This development underscores Palantir's focus on enhancing corporate value through innovative technology solutions.
Ulta Beauty (ULTA, Financial) reported impressive fourth-quarter results, with comparable store sales exceeding expectations. Despite a forecasted investment year, analysts remain optimistic about Ulta's growth potential, driven by the beauty sector's expansion and consumer spending trends. The company plans significant capital expenditures in FY25 to bolster long-term growth.
Regeneron Pharmaceuticals (REGN, Financial) faced a setback as an appeals court upheld a ruling against it in a patent case with Amgen (AMGN, Financial) over the Eylea drug. This decision allows Amgen to proceed with its biosimilar version, impacting Regeneron's market position in the ophthalmology sector.
Chipotle Mexican Grill (CMG, Financial) received an upgrade from Loop Capital, citing manageable tariff risks and potential EPS growth. The stock has experienced an 18% decline this year, but analysts see upside potential if sales continue to exceed expectations.
Eli Lilly (LLY, Financial) saw a rebound after six days of losses, with plans to expand its diabetes and weight loss drug portfolio internationally. The company aims to enter major markets like India and China by the end of the year, which could drive future growth.
Altimmune (ALT, Financial) shares rose amid takeover speculation, following updates on its lead obesity drug candidate, pemvidutide. The company is reportedly engaged in a strategic review involving several large pharmaceutical firms, signaling potential acquisition interest.
Costco Wholesale (COST, Financial) ended its losing streak, buoyed by a mixed analyst outlook. While growth and valuation concerns persist, the company's profitability remains strong, earning it a Buy recommendation from Wall Street.
GuruFocus Stock Analysis
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