What a difference a week makes! Wall Street's benchmark S&P 500 (SP500) index on Friday charged to its best weekly advance since late October ...
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| | Top News  jcrosemann What a difference a week makes! Wall Street's benchmark S&P 500 ( SP500) index on Friday charged to its best weekly advance since late October last year with a 4% gain. The gauge also snapped a four-week losing streak, and is now just 2% below its record close. This week's economic data on inflation and retail sales, along with upbeat comments from consumer bellwether Walmart ( WMT), continued to quell economic slowdown fears and gave investors the confidence to dive back into growth areas. The S&P 500 Information Technology sector surged 7.51%, its best weekly gain since early November 2022. The favorable economic indicators also led to market participants dialing back their expectations for an aggressive 50 basis point rate cut by the Federal Reserve at its meeting in September. For the week, the S&P ( SP500) climbed +3.9%, the Nasdaq Composite ( COMP:IND) gained +5.3%, and the blue-chip Dow ( DJI) added +2.9%. Read a preview of next week's major events in Seeking Alpha's Catalyst Watch. | | M&A Too much munch? Not yet. Candy giant Mars inked a $35.9B deal for snack maker Kellanova ( K) - including assumed net leverage - in what is set to be one of the biggest M&A headlines of the year. The tie-up will pair the company behind M&M's and Snickers with the producer of Cheez-It and Pop-Tarts, meaning the next time you reach for a quick packaged bite, it may ring the register of the same private conglomerate. Kellanova was spun off from cereal-focused WK Kellogg ( KLG) last year and has since posted a series of strong earnings, even raising its guidance for FY24 after its most recent analyst-beating results. ( 26 comments) | | Consumer In other consumer news, Starbucks (SBUX) sent shockwaves across the sector after it replaced its CEO Laxman Narasimhan with Chipotle Mexican Grill's (CMG) Brian Niccol. Starbucks CFO Rachel Ruggeri will serve as interim CEO until September 9, when Niccol will officially take over. Wall Street analysts and activist Elliott Investment cheered the news, which sent Starbucks surging 24.5% on Tuesday, while activist investor Trian Fund Management cashed out of its SBUX holdings. Former Starbucks CEO Howard Schultz also reportedly said Niccol's appointment was a "home run." (56 comments) | | Regulation Ever get the feeling that 5-star review is not all that real? Sounds auto-generated or too similar to the rest of them? Well, the Federal Trade Commission has taken notice too, as consumer complaints pile up in the age of generative AI and e-commerce popularity. New rules are set to combat fake reviews and testimonials, censorship of negative reviews and compensating third parties for positive feedback, among other restrictions. Businesses may need to implement stricter guidelines on reviews, translating into great responsibility for companies like Amazon ( AMZN), Facebook ( META), Google ( GOOGL), and Yelp ( YELP). ( 82 comments) | | Consumer "The soft landing is back on the table," according to SA Investing Group Leader Leo Nelissen. Major stock market averages ended higher Thursday after jobless claims unexpectedly fell and retail sales bounced back. Index heavyweight Walmart (WMT) also hit an all-time high by countering recession worries with a series of upbeat comments and raising its outlook. "We have not seen any additional fraying of consumer health in our business," said CFO John David Rainey, echoing a company viewpoint held for the last few quarters and helping lift other retail stocks. (71 comments) | | Real Estate Seismic changes hit the real estate world today as the National Association of Realtors formally dropped its standard commissions to agents as part of a deal to end antitrust lawsuits. While the changes could save sellers money, they may also force buyers to come up with more to pay for the fees or incentivize agents to focus on higher-priced homes. Others see the new rules as helping to re-energize the housing market, especially as mortgage rates begin to come down, with the potential for new business models or many part-time realtors leaving the industry. ( 35 comments) | | Notable Ratings From SA Analysts | | Weekly Movement U.S. Indices
Dow +2.9% to 40,660. S&P 500 +3.9% to 5,554. Nasdaq +5.3% to 17,632. Russell 2000 +2.9% to 2,142. CBOE Volatility Index -27.3% to 14.8.
S&P 500 Sectors
Consumer Staples +1.6%. Utilities +1%. Financials +3.2%. Telecom +1%. Healthcare +1.9%. Industrials +2.1%. Information Technology +7.5%. Materials +2.2%. Energy +1.9%. Consumer Discretionary +5.2%. Real Estate +0.1%.
World Indices
London +1.8% to 8,311. France +2.5% to 7,450. Germany +3.4% to 18,322. Japan +8.9% to 38,128. China +0.6% to 2,879. Hong Kong +2% to 17,430. India +0.9% to 80,437.
Commodities and Bonds
Crude Oil WTI -0.3% to $76.6/bbl. Gold +2.9% to $2,546.2/oz. Natural Gas -0.7% to 2.129. Ten-Year Bond Yield -0.2 bps to 3.883.
Forex and Cryptos
EUR/USD +1.03%. USD/JPY +0.68%. GBP/USD +1.46%. Bitcoin -2.6%. Litecoin +8.8%. Ethereum -0.1%. XRP -3.3%.
Top S&P 500 Gainers
Starbucks (SBUX) +26%. Super Micro Computer (SMCI) +24%. NVIDIA (NVDA) +19%. Ulta Beauty (ULTA) +17%. Micron Technology (MU) +16%.
Top S&P 500 Losers
Chipotle Mexican Grill (CMG) -6%. The Hershey Company (HSY) -4%. Charter Communications (CHTR) -3%. Albemarle (ALB) -3%. Baxter International (BAX) -3%.
Where will the markets be headed next week? Current trends and ideas? Add your thoughts to the comments section. | | Seeking Alpha's Wall Street Breakfast Podcast Seeking Alpha's Wall Street Breakfast podcast brings you all the news you need to know for your market day. Released by 8:00 AM ET each morning, it is a quick listen that you can put on as you get ready to start your working day. | | | | |
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