U.S. stock indices ended the week on a major note amid positive corporate results, which at least temporarily stabilized the situation on world stock exchanges.
The Dow Jones rose 1.76%
The index broke its longest eight-week losing streak since 1923, and a 6.2% gain in five trading sessions confirmed its best weekly performance since November 2020
The S&P 500 and Nasdaq’s climbing performance was even more solid. The broad market index rose 2.47%, while the technology benchmark known for its volatility gained 3.33%. Both indexes recorded +6.5% and 6.8% for the week, respectively.
Trader on NYSE. Photo: Associated Press
The main market muvers of Dow Jones Industrial were Apple (AAPL) +4.07%, Boeing (BA) +3.52% and Walt Disney (DIS) +3.51%. There are no “losers” in the main benchmark of stock America. Even DJI’s worst performers Coca Cola (KO), Verizon (VZ) and Merck (MRK) added between 0.5% and 0.8%.
Dell Surprised Wall Street
The tech sector was buoyed not only by strong overselling, but also by the reporting of Dell Technologies (DELL), which reported its first quarter well above Wall Street expectations
Commercial PC sales were the strongest source of growth. Dell’s revenue from PC sales jumped 22% to $12 billion as orders increased amid a growing number of employees returning to their desks in offices, Motley Fool writes.
According to research firm Gartner, global PC shipments fell 6.8% in the first quarter. So Dell’s strong sales suggest the company is increasing its global market share. Investors were pleasantly surprised by the tech leader’s rising share. DELL shares gained nearly 13%.
Rebound or reversal?
This is probably the most pressing question that worries many stock market participants. But it’s better not to guess what will happen tomorrow and to be prepared for any scenario.
Oil and gas quotes remain high. West Texas Intermediate (WTI) closed the week at $115/bbl, while European benchmark Brent came very close to $120, closing at $120/bbl. While natural gas prices in Europe were flat all week at $960 per thousand cubic meters, the price of gas in the US rose nearly 10% to $8.80 per 1m/Btu.
On topic: Why oil prices will reach $150 per barrel sooner than $75
The stability of energy price tags gives reason to continue to see oil stocks among the potential beneficiaries of implied returns.
Chevron and Occidental
securities of both industry giants, such as ExxonMobil (XOM), Chevron (CVX) and ConocoPhillips (COP), and smaller-cap representatives remain interesting. EOG Resources (EOG), Occidental Petroleum (OXY), Pioneer Natural Resources (PXD), Marathon Petroleum (MPC), Valero Energy (VLO), Devon Energy (DVN) and Imperial Oil (IMO) deserve attention in this case.
Nvidia and AMD
The strong oversold nature of the technology sector is tempting to pick up securities of its representatives. Especially considering the fact that a number of decent issuers lost up to 50% of their maximum values.
The most interesting, in my opinion, are the securities of chipmakers Advanced Micro Devices (AMD) and NVIDIA Corporation (NVDA) – classic growth stocks, which pay no or almost no dividends, while being related to one of the most demanded sectors of economy.
Tesla (TSLA) and Apple (AAPL) stocks aren’t going anywhere yet. Although I will caveat that both stocks are only of interest from a local perspective. For long intervals, they’re not interesting for fundamental reasons – both will lose on core product releases due to a variety of factors.
Tesla is down decently, so it could be the queen of the pullback. Apple will go on inertia, but the upside is very limited.