Markets are ready to start the week: PLTR and MCHP meet their profits

Monday May 6, 2024

The markets start the week in the green. This is the third consecutive day of increases for the S&P 500 and the Nasdaq, and the fourth consecutive day for the Dow Jones. We’re on track to return to break-even over the past month (Nasdaq has already achieved this), which is remarkable considering where we were a few weeks ago. The Dow gained +176 points in today’s session, while the S&P gained +1.03% and the tech-heavy Nasdaq +1.19%. The small cap Russell 2000 performed just as well: +1.16% for the day.

This week we’re taking something of a break from key economic data. This follows last week’s jobs week, which also happened to be the Fed’s last meeting and was the busiest week of the calendar first-quarter earnings season. That said, we will still have heard from around 2,000 companies reporting to us before the opening bell on Friday, with notable, if less impactful, data released this week. Many Fed members will also make public appearances throughout the week. We expect a united front in messages from different Fed members.

Intelligence software company Palantir PLTR releases its first quarter results this afternoon. The company earned the expected 8 cents per share on revenue of $634 million, ahead of the Zacks consensus estimate of $615 million. Full-year revenue forecasts rose slightly higher than expected, to a range of $2.68 billion to $2.69 billion, as U.S. commercial revenues were expected to be stronger, with its artificial intelligence platform – AIP – leading the way for the Denver-based company. farm.

Microchip technology MCHP reported its fourth quarter results after today’s close. It also met expectations for net income, at 57 cents per share, on a line of $1.33 billion for the quarter. This revenue is down 40% from the year-ago period and -25% sequentially, as the company said low business visibility due to short delivery times is manifesting through forecasts. more prudent income. That said, the company increased its dividend yield by +18%, but its shares are still down -4.5% at the end of the trading session.

Tomorrow morning, The Walt Disney Company. DIS reports its second quarter financial results. The entertainment conglomerate is expected to post quarterly profit of +19%, with revenue growth of +1.3%. Disney is currently enjoying a five-quarter positive earnings streak and the stock is up +28% year to date (only +13% from last year). The stock enters its middle-of-the-road earnings date: with a Zacks Rank #3 (Hold) and a Value-Growth-Momentum Score of C.

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