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For May 7, 2015, here's how the stock market did today, earnings reports, the top stock market news, and stocks to watch based on today's market moves...
How Did the Stock Market Do Today?
Dow: 17,924.10, +82.08, +0.46%
S&P 500: 2,088.00, +7.85, +0.38%
Nasdaq: 4,945.54, +25.90, +0.53%
The DJIA Index jumped 82 points, fueled by a rally in tech stocks and a downturn in global interest rates.
This morning, weekly jobless claims slipped to their lowest level in 15 years, creating even more anticipation for tomorrow's monthly employment report.
Top Stock Market News Today
- Stock Market Recap: The markets shrugged off concerns about yesterday's comments from Federal Reserve Chairwoman Janet Yellen over stock valuations and jitters regarding Friday's pending jobs report. Meanwhile, sport-tracker firm Fitbit has filed for an IPO with a goal of raising up to $100 million. The firm will trade under the ticker "FIT" on the New York Stock Exchange.
- More of the Same: Ex-Treasury Secretary Larry Summers spoke at the SALT Conference in Las Vegas and called for more government spending on infrastructure to boost the U.S. economy. Last week, the government said the economy grew by a paltry 0.2% in the first quarter, although Tuesday's trade data suggests a downward revision is possible and that the U.S. economy actually contracted.
- Oil Prices Dip: Oil prices slid on the day, helping to support airline stocks. Shares of Delta Air Lines Inc. (NYSE: DAL) jumped 2.95%%, American Airlines Group Inc. (Nasdaq: AAL) gained 4.28%, and United Continental Holdings Inc. (NYSE: UAL) added another 5%. Oil prices slid on concerns about growing supply and Friday's jobs report, which could affect the timing of a Fed interest rate hike. WTI crude, priced in New York City, fell 3.4% to hit $58.05 per barrel. Brent oil, priced in London, fell 3.3% to hit $65.49 per barrel.
- On Tap Tomorrow: The Bureau of Labor Statistics will report the April employment situation. In addition, AOL Inc. (NYSE: AOL), CROCS Inc. (Nasdaq: CROX), and NRG Energy Inc. (NYSE: NRG) are among companies reporting earnings.
Stocks to Watch: AAPL, YELP, BABA, TSLA
- Stocks to Watch No. 1, AAPL: Shares of Apple Inc. (Nasdaq: AAPL) gained 0.6%, reversing from yesterday's decline. The tech giant saw gains in market share in the U.S. smartphone sector. In the first quarter, Apple added 1% to capture 42.6% of the market. The gains came at the expense of its Korean rival Samsung Electronics, which lost 1.4% of market share. Samsung now controls 28.3% of the market. However, it wasn't all good news for Apple stock today. Global banking giant JPMorgan Chase & Co. (NYSE: JPM) announced that the European Union is investigating whether Apple struck a deal with Ireland to gain an illegal tax benefit. JPM analysts said in a research note today that an EU ruling against Apple could cost the firm up $19 billion in tax penalties.
- Stocks to Watch No. 2, YELP: Shares of online review site Yelp Inc. (Nasdaq: YELP) jumped 23% on news that the company could soon be on the auction block. The company has seen more than half of its market value erode over the last eight months, and executives are looking to jump ship. If sold the company could fetch a little more than $3 billion, according to a report from The Wall Street Journal.
- Stocks to Watch No. 3, BABA: Shares of Alibaba Group Holding Ltd. (NYSE: BABA) jumped 7.5% as the company exceeded March-ending quarter estimates. The company said its revenue jumped 45% thanks to more active buyers and service fees. In addition, the company's chief operating officer, Daniel Zhang, will replace Jonathan Lu as CEO. The company announced per-share adjusted earnings of $0.48, beating Wall Street estimates of $0.42. Here's exactly how to play BABA stock after its earnings report.
- Stocks to Watch No. 4, TSLA: Shares of Tesla Motors Inc. (Nadsaq: TSLA) gained 2.76% today after reporting an earnings-per-share (EPS) loss of $0.36 and revenue of $1.1 billion last night. Both of those numbers comfortably beat Wall Street expectations. The earnings report wasn't all good news, though. In a research note, Morgan Stanley (NYSE: MS) exposed the company's cash burn rate. In addition to the firm reporting lackluster earnings on Wednesday, the focus on its burn rate, which Morgan Stanley called "eye watering," increases concerns about the timing of Tesla's launch of the Model X this summer. For more insight on Tesla stock, check out why Tesla makes for a compelling long-term play.
What Investors Must Know This Week
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.
