U.S. Stocks Slip as Investors Weigh Rate-Cut Runes

Q: What is a stock market index?

A stock market index measures the performance of a segment of the stock market. It's calculated from the prices of selected stocks, providing a snapshot of market trends and helping investors compare individual performance against a broader market benchmark. Examples include the S&P 500, Dow Jones Industrial Average, and NASDAQ Composite.

Q: What is a deductible in an insurance policy?

A deductible is the amount you pay out of pocket before your insurance coverage begins to pay for a covered loss. Choosing a higher deductible can lower your insurance premiums, but it means paying more upfront when a claim is made. It's crucial to select a deductible amount that you can comfortably afford in case of an emergency. For instance, if you have a $500 deductible and incur $2,000 in covered damages, you would pay the first $500, and your insurance would cover the remaining $1,500.

Q: What are growth stocks vs. value stocks?

Growth stocks are shares in companies expected to grow at an above-average rate compared to their industry or the overall market, but they often do not pay dividends. Value stocks are shares in companies that appear to be undervalued by the market and are characterized by low price-to-earnings ratios and high dividend yields.

Q: What are Treasury bonds?

Treasury bonds (T-bonds) are long-term government debt securities issued by the U.S. Department of the Treasury. They have a maturity of more than ten years, offer fixed interest payments, and are considered among the safest investments since they are backed by the U.S. government's credit.

Q: What is the role of commodities in the industrial sector?

Commodities are essential inputs for the industrial sector, providing raw materials for manufacturing, construction, and infrastructure development. Industrial commodities include metals, energy resources, and chemicals, which are used to produce goods and services across various industries.

Q: What is the role of technology innovation in digital transformation?

Technology innovation plays a key role in digital transformation by enabling organizations to modernize their operations, processes, and customer experiences through digital technologies. Digital transformation involves leveraging innovative technologies, such as cloud computing, big data analytics, and AI, to drive business agility, improve decision-making, and enhance competitiveness in the digital age.

Q: What is the claims process for homeowners insurance?

The claims process for homeowners insurance typically involves the following steps: Report the Claim: Contact your insurance company to report the loss and file a claim. Document the Damage: Provide photos, videos, and documentation of the damaged property. Meet with an Adjuster: An insurance adjuster will assess the damage and estimate repair costs. Receive Payment: Once the claim is approved, the insurance company will issue a payment to cover the covered losses. Complete Repairs: Use the insurance payout to repair or replace damaged property. Understanding the claims process, providing accurate documentation, and working with your insurance company can help expedite your claim and ensure you receive fair compensation for your losses.

Q: Should I invest in stocks for my retirement?

Investing in stocks can be a part of a diversified retirement strategy, offering the potential for higher returns compared to more conservative investments like bonds. However, the suitability of stocks depends on your risk tolerance, investment timeline, and financial goals. It’s often recommended to reduce exposure to stocks as you approach retirement age to decrease risk.

Q: How can companies use earnings to drive financial performance?

Companies can use earnings to drive financial performance by: Setting Earnings Targets: Establishing earnings goals, earnings forecasts, and earnings projections to guide financial planning, budgeting, and performance measurement. Improving Profitability: Enhancing operational efficiency, cost management, and revenue generation to increase earnings, profitability, and shareholder value. Optimizing Capital Allocation: Evaluating investment opportunities, assessing project risks, and allocating capital to strategic initiatives that drive growth, innovation, and value creation. Communicating Performance: Reporting financial results, earnings reports, and earnings releases to stakeholders, investors, and analysts to communicate business performance and financial health. By leveraging earnings effectively, companies can enhance financial performance, attract investors, and achieve longterm success in a competitive business environment.

Q: How do companies use earnings to drive financial performance?

Companies use earnings to drive financial performance by: Setting Earnings Targets: Establishing earnings goals, earnings forecasts, and earnings projections to guide financial planning, budgeting, and performance measurement. Improving Profitability: Enhancing operational efficiency, cost management, and revenue generation to increase earnings, profitability, and shareholder value. Optimizing Capital Allocation: Evaluating investment opportunities, assessing project risks, and allocating capital to strategic initiatives that drive growth, innovation, and value creation. Communicating Performance: Reporting financial results, earnings reports, and earnings releases to stakeholders, investors, and analysts to communicate business performance and financial health. By leveraging earnings effectively, companies can enhance financial performance, attract investors, and achieve long-term success in a competitive business environment.

| May 10, 2024 6:05 PM

U.S. Stocks Slip as Investors Weigh Rate-Cut Runes

U.S. stocks fell on Wednesday, threatening to end a four-day winning streak for the S&P 500. The Dow Jones Industrial Average was down by 5 points, or less than 0.1%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.6% lower. Uber Technologies slumped 8.9% after reporting worse results for the latest quarter than analysts expected. It also gave a forecasted range for bookings in the current quarter whose midpoint fell below analysts’. Shopify tumbled 21.1% despite reporting better profit and revenue for the latest quarter than analysts expected. The company, which helps people and businesses sell things online, said its revenue growth would likely slow this quarter and that it would likely make less profit off each $1 in revenue. Intel fell 2.4% after saying the U.S. Commerce Department revoked licenses for exports to a Chinese customer. That could cause its revenue for the current quarter to fall below the midpoint of the forecasted range it had earlier given. They helped to offset Lyft, which revved 6.2% higher after topping expectations for profit and revenue. It said growth was particularly strong for early-morning, commute and weekend-evening trips. Reddit was another big winner and rose 6.6% after delivering its first profit report as a publicly traded company. It reported a milder loss and better revenue than expected, while also giving a stronger-than-expected forecast for revenue in the current quarter. Arista Networks climbed 3.2% for one of the biggest gains in the S&P 500 after topping expectations for both profit and revenue. Most companies have been reporting stronger profits for the start of the year than analysts expected. That and newly revived hopes for coming cuts to interest rates by the Federal Reserve have helped the U.S. stock market to recover from its rough April. Treasury yields have largely been easing since Federal Reserve Chair Jerome Powell said last week that it remains closer to cutting its main interest rate than hiking it, despite a string of stubbornly high readings on inflation this year. A cooler-than-expected jobs report on Friday, meanwhile, suggested the U.S. economy could pull off the balancing act of staying solid enough to avoid a bad recession without being so strong that it keeps inflation too high. The yield on the 10-year Treasury recovered some of those losses to add more pressure on the stock market. It rose to 4.48% from 4.46% late Tuesday. In stock markets abroad, indexes fell across much of Asia. Japan’s Nikkei 225 dropped 1.6% after Nintendo forecast that its net profit would fall in the upcoming fiscal year and announced that news of a successor product to its popular Switch device will be made by March 2025. Stock indexes rose modestly in Europe.

Federal Reserve officials including Vice Chair Philip Jefferson, Boston Fed President Susan Collins and Fed Governor Lisa Cook are all expected to give remarks throughout the day. Stocks open Wednesday in the red

DoubleVerify tumbles 38% after cutting Q2 and full-year guidance

DoubleVerify Holdings, a digital advertising measurement company with a $5.5 billion market value (as of Tuesday anyway), is down 38% premarket Wednesday after cutting its second-quarter and full year revenue and adjusted EBITDA forecasts. “We are adjusting our full-year 2024 guidance ranges to 17% revenue growth, and 31% adjusted EBITDA margins at the midpoints primarily due to uneven spending patterns among select large advertisers,” DoubleVerify said in reporting its latest quarter’s results postmarket Tuesday. Wells, Keybanc and Capital One all downgraded DoubleVerify in reaction. DoubleVerify is trading near $19 in premarket trading, down from $30.57 at Tuesday’s close, showing the greatest percentage decline of any stock in the S&P 1500 Index, comprised of the S&P 500, MidCap 400 and SmallCap 600. Lyft shares of the ride-hailing company rose 5% after first-quarter results showed faster-than-expected growth. Lyft reported $1.28 billion in revenue, above the StreetAccount consensus of $1.16 billion. Total bookings also topped expectations. Uber Technologies – The ride-hailing giant slid 7% after reporting mixed first-quarter results. The company’s overall revenue exceeded expectations, coming in at $10.13 billion versus an LSEG estimate of $10.11 billion. Booking revenue, however, totaled $37.65 billion. That’s below a StreetAccount forecast of $37.93 billion. Reddit – The social media company rose 11% after its first quarterly report beat expectations. Reddit reported a loss of $8.19 per share on $243 million of revenue, while FactSet analysts were expecting a loss of $8.75 per share on $214 million of revenue. For the full list, read here. Intel shares dip after chipmaker lowers guidance on U.S. Commerce Department notice

Shares of Intel slid 2.6% after the chipmaker updated its second-quarter outlook on a U.S. Commerce Department notice from Tuesday that said it was revoking certain licenses for exports to a Chinese customer. That could cause its revenue for the current quarter to fall below the midpoint of the forecasted range it had earlier given.

U.S. stocks slip investors weigh rate-cut runes U.S. stocks fall S&P 500 falls Dow Jones Industrial Average falls Nasdaq composite falls Uber Technologies falls Shopify falls Intel falls Reddit rises Arista Networks rises Federal Reserve cuts interest rates Treasury yields fall jobs report suggests U.S. economy is balancing DoubleVerify Holdings cuts guidance digital advertising measurement company cuts guidance