October 10th 2024, 7:28:24 am
(about a few seconds ago)
Magnificent Seven Stocks March Higher
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US stock markets extended their rally, gaining solid ground as the latest earnings reports from industry giants, including Amazon and Meta (Facebook), exceeded expectations. This positive turn catapulted these stocks to new heights. Year-to-date, the S&P 500 and Nasdaq have both surged by 3.55%, while Canada's primary benchmark, the S&P/TSX Composite, has seen a more modest increase of 0.6%, notably lacking substantial weight in the tech sector.
Meta and Amazon, the latest companies among the Magnificent Seven to report, delivered positive surprises, propelling Amazon's stock by 7.3% and Meta's by over 20% on Thursday. However, Apple and Tesla faced challenges, experiencing declines of 3.2% and 26% year-to-date, primarily attributed to issues in China.
Tesla confronts heightened competition from Chinese brands, coupled with reduced production and sales figures. Apple, on the other hand, provided bleak guidance for iPhone sales, particularly in China, amidst the largest capital outflow from the country in history, highlighting mounting challenges for China.
In contrast, the US economy is thriving. Recent data revealed record-low unemployment and an addition of over 350k jobs, surpassing estimates. The market sentiment is shifting from a soft landing, indicating a mild recession while inflation returns to the 2% target, to a new term termed "no landing," signifying continued robust economic growth with high inflation as the new normal.
In such an environment, both commodity and equity prices are poised to benefit.