US markets finish mixed as momentum slows

US markets traded mostly sideways as the major indexes finished mixed on a day where investors continued to debate the Fed ‘s next rate moves and timing.

The Dow Jones managed to limp into positive territory finishing the day up 0.08 per cent. This was the fifth consecutive positive close for the 30 stock Dow and the longest winning streak since December. The broader S&P 500 added 0.13 per cent and the Nasdaq tipped into the red closing down 0.1 per cent.

In company news Disney slumped 9.5 per cent after the media and entertainment giant delivered a slight revenue miss. Defence technology firm Palantir collapsed 15 per cent as the company gave softer than expected earnings guidance. On a more positive note, Peloton jumped 15.5 per cent on reports that private equity is looking at a potential buyout of the fitness company.

Coca-Cola Consolidated reported a significant increase in Q1 EPS by 17.7 per cent to $17.33 compared to the previous year's $16.20, with revenue rising to $1.59B from $1.57B. Additionally, the company plans to buy back up to $3.1B of its Common Stock, emphasising strong free cash flow and margins.

After the bell, Reddit reported results. Revenue exceeded expectations at $243 million versus $212.8 million anticipated, driven by a 48 per cent year-over-year increase, mainly from a 39 per cent rise in ad revenue to $222.7 million.

Apple unveiled a new artificial intelligence-focused iPad Pro and a larger iPad Air, aiming to reinvigorate a tablet lineup that has languished over the past two years, Bloomberg reported. Apple stock closed up 0.38 per cent for the day.

Wall Street is coming off a winning session, with investors riding the momentum seen late last week after fresh U.S. jobs data alleviated concerns that the economy was too hot and Fed Chair Jerome Powell ruled out an interest rate hike as the central bank’s next move.

Turning to US sectors, the best performing sectors were Materials and Utilities which closed up 1.17 per cent & 1.12 per cent respectively. The worst performers were Consumer Discretionary & Tech which finished 0.56 per cent and 0.53 per cent lower respectively.

In April, China continued its trend of increasing gold reserves for the 18th consecutive month, adding 60,000 troy ounces and bringing its total to 72.80 million ounces. This accumulation coincided with record high gold prices driven by safe haven demand and consistent buying from central banks, with the People's Bank of China emerging as the largest official buyer in 2023 with net purchases of 7.23 million ounces, according to the World Gold Council.

European markets traded strongly hitting their highest level in over a month, as markets reacted to a flurry of earnings reports in the region. The regional Stoxx 600 index closed 1.14 per cent higher, with all sectors in the green. Financial services led gains, up 2.62 per cent.

Futures

The SPI futures are pointing to a 0.2 per cent gain.

Currency

One Australian dollar at 7.30am was buying 65.97 US cents.

Commodities

Gold lost 0.30 per cent. Silver fell 0.25 per cent. Copper shed 0.21 per cent. Oil was down 0.13 per cent.

Figures around the globe

European markets closed higher. London’s FTSE gained 1.22 per cent, Frankfurt added 1.40 per cent, and Paris closed 0.99 per cent higher.

Turning to Asian markets, Tokyo’s Nikkei gained 1.57 per cent, Hong Kong’s Hang Seng fell 0.53 per cent while China’s Shanghai Composite closed 0.22 per cent higher..

The Australian share market closed 1.44 per cent higher at 7,793.32.

Ex-dividends
GQG Partners (ASX:GQG) is paying 3.2747 cents unfranked
ResMed Inc (ASX:RMD) is paying 5.1542 cents unfranked

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.

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