Inflation data and the U.S. debt ceiling took center stage this week
The beginning of the week was relatively quiet, as investors awaited inflation data and observed U.S. debt ceiling talks. Even after April's consumer price index (CPI) rose to its lowest level in two years, Wall Street remained stalled until the Nasdaq Composite Index (IXI) managed a mid-week rally as Treasury yields retreated. The Dow Jones Industrial Average (DJI), however, logged its fourth-straight loss on Thursday, while the S&P 500 Index (SPX) continued to see little movement as fears surrounding regional bank stocks resurfaced. The Nasdaq ultimately outshined the SPX and Dow, the only index set to walk away with a weekly win -- its third straight.
Meta Platforms, Walt Disney Hog Earnings Spotlight
Investors spent the week unpacking what's left of this season's earnings reports. Call traders were all over Facebook-parent Meta Platforms (META) after the company's better-than-expected quarterly results. Media giant Walt Disney (DIS) also took to the earnings confessional amid its battle with Florida Governor Ron DeSantis.
Bleak forecasts were also issued, with Twilio (TWLO) issuing a weaker-than-expected outlook, and Airbnb (ABNB) saying it sees fewer bookings and lower average daily rates for the second quarter.
Elsewhere, Celsius (CELH) hit a new all-time high in a post-earnings surge, while options traders placed bullish bets on Upstart (UPST) after a narrower-than-expected first-quarter loss. Zscaler (ZS) and the tech mover's sunny forecast was also a notable storyline.
Headlines You Might Have Missed
Outside of earnings, Occidental Petroleum (OXY) took a step back after Warren Buffett dispelled rumors that Berkshire Hathaway (BRK.A) planned to buy the company. Meanwhile, billionaire activist investor Nelson Peltz is exploring a "possible shakeup" at Estee Lauder (EL), which could include a move in the c-suite. Alphabet (GOOGL) introduced some new artificial intelligence (AI) features across its products, and Elon Musk moved to refocus his attention on Tesla (TSLA). Finally, First Solar (FSLR) acquired Sweden-based solar cell tech firm Evolar AB for $38 million.
Retail Data, Earnings Highlight Next Week's Action
Looking beyond the week's inflation-laden headlines, next week features even more pertinent economic data, including retail sales that will accompany several big name retail earnings reports. In the meantime, Schaeffer's Senior Quantitative Analyst Rocky White breaks down the Choppiness Index, and Schaeffer's Senior V.P. of Research Todd Salamone says the SPX could bounce.