Friday’s market rally pushed the major U.S. stock benchmarks into positive territory for the week. Apple’s strong performance, with a more-than-7% rally in reaction to better-than-expected earnings and bullish outlook for the future, played a significant role in this positive trend. Despite a 2% gain for the tech-heavy Nasdaq, Alphabet’s shares were slightly lower following Apple’s AI commentary that impacted Google parent’s stock. Treasury yields plummeted in response to the softer-than-expected April jobs report, easing concerns about Federal Reserve tightening and providing a lift to the rest of the market.
The market also saw a boost after S & P Global’s U.S. services purchasing managers’ index and prices paid in the Institute for Supply Management’s services index came in higher than expected, indicating a stronger economic outlook than the jobs report. Coterra Energy’s first-quarter earnings call revealed the company’s commitment to disciplined production decisions based on natural gas economics. Despite a challenging near-term natural gas demand environment, Coterra remains optimistic about future demand growth with additional export capacity and data center construction. The company’s share repurchases and capital allocation strategy reflect a focus on value and prudent investment decisions.
Diamondback Energy is another oil stock garnering attention as a potential addition to the Club’s portfolio Bullpen. As the lone S & P 500 sector in the red, energy stocks face challenges, but Jim Cramer sees potential in Diamondback given his view on oil bottoming out. Looking ahead, Cinco de Mayo presents an opportunity for Club holding Constellation Brands, with its portfolio of Mexican beers dominating the holiday market. Despite a slowdown in earnings reports, Disney’s upcoming report is eagerly anticipated, following a successful proxy fight against activist Nelson Peltz.
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