April 14, 2024

Market sentiment was mixed on the first day of the second quarter. Investors were encouraged to hear that the Personal Consumption Expenditures (PCE) price index grew only 0.3% in recent weeks, suggesting the Fed might cut rates in the coming months. The Fed Chair is not in a hurry to make the cuts, but Treasury yields rose following the release of data. The benchmark 10-year Treasury yield is up more than 11 basis points at 4.303%.

The stock market indexes were flat today, indicating the mixed sentiment of investors. The Dow lost 263 points, or 0.6%, to land at 39,543. The S&P 500 and Nasdaq lost 0.2 and 0.03%, respectively.

Trump Media showed a loss

Shares of Trump Media & Technology Group, the social media company founded by former President Donald Trump, plunged more than 25% on Monday afternoon after the company disclosed major losses in 2023. Trump Media, the company behind Trump’s social media platform Truth Social, reported a loss from operations of almost $16 million, plus interest expense of $39.4 million, while bringing in just $4.1 million in revenue, according to a Securities and Exchange Commission filing. That’s compared with a loss from operations of $23.2 million, plus interest expense of $2.0 million, on $1.5 million in revenue in 2022.

Airline stocks crashed to Earth

Almost all airline stocks experienced dips on Monday morning, as United Airlines requested that pilots take unpaid time off next month due to Boeing’s delayed planes. Stocks of United Airlines slipped 0.2%, Boeing dropped 1.56%, and Southwest Airlines dipped 0.05%.

Walgreens is cutting costs

Walgreens Boots Alliance saw a sharp decline of 8% after it announced cost-cutting measures worth $1 billion by layoffs and store upgrades. The pharmacy retailer also recorded a $5.8 billion impairment charge on its investment in clinic operator VillageMD last week. At the time of writing, the stock was hovering around $20.

The manufacturing sector’s robust performance

The US manufacturing sector is currently at its strongest since 2022. The Institute for Supply Management’s manufacturing PMI showed that, for the first time since September 2022, the sector expanded in March.

In other macroeconomic news, the unemployment report, which is a key indicator of economic health, is due out on Friday. This report will be crucial to the Fed’s decision on interest rates later this year.

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