Equity Indexes Wrap: Google Gains on Day 1 of Cloud Conference; Q1's AI Winners Lag

The Dow

Intel (INTC) ticked up 0.9% after 澳洲幸运5官方开奖结果体彩网:unveiling the Gaudi 3, its attempt to challenge Nvidia's dominance in the market for A꧙I accelerator chips. 

Boeing (BA) fell 1.9% after it reported deliveries fell in the first quarter of this year to 澳洲幸运5官方开奖结果体彩网:their fewest since 2021.

The S&P 500

Moderna (MRNA) cl𝓡imbed 6.2% after reporting positive results from an early-stage t🥀rial of its cancer vaccine.

Freeport-McMoRan (FCX) rose 2.6% as the price of 澳洲幸运5官方开奖结果体彩网:copper climbed to a 15-month high amid a supply crunch and strong demand. 

Alphabet (GOOGL) rose 1.1% on the first day of its Google Cloud Next conference, where it unveiled several new products, including 澳洲幸运5官方开奖结果体彩网:a custom AI chip, and partnerships. 

Insurance companies were some of the day’s worst performers. Hartford Financial Services Group (HIG) slid 3.8%, while the Travelers Co. (TRV) lost 2.9% and Progressive (PGR) shed 2.6%. 

Super Micro Computer (SMCI) fell 2.6% as the market’s AI darlings continued to struggle following 澳洲幸运5官方开奖结果体彩网:Q1’s run-up. 

The Nasdaq 100

Palo Alto Networks (PANW) rose 3.9% 🎃after the cybersecurity firm announced an expanded multi-billion dollar,ꦓ multi-year partnership with Google Cloud. 

Nvidia (NVDA) slid 2% as Google unveiled a custom Arm-based CPU, raising concerns the chip company’s largest AI clients are eager to reduce their reliance on it. Broadcom (AVGO), a major Google partner, slipped 0.2%. 

Government’s Medicare Plan Has🎶tens Health Care 🅷Stock Exodus

Health c🃏are stocks last week experienced their largest weekly outflows since♎ at least 2008, according to Bank of America.

BofA’s customers have been net sellers of health care for the past 8 weeks, the longest recent selling streak of any sector. But last week they off-loaded nearly $2.3 billion, more than any other week in Bank of America’s data going back more than 15 years.

Health care stocks were hit hard last week when the Center for Medicare & Medicaid Services (CMS) said base payments to Medicare Advantage plans would 澳洲幸运5官方开奖结果体彩网:decrease by an average of 0.16% in 2025. Though insurers will see a net increase once payments are risk-adjusted t𓄧o ref𝔉lect patient health, the payment plan was unwelcome news to insurers who have been forecasting higher medical costs and lower margins this year.

In early January, UnitedHealth Group (UNH) reported a 澳洲幸运5官方开奖结果体彩网:higher-than-expectedꦦ medical loss ratio, which it attributed to a 16% increase in medical costs. And Humana (HUM) later that month 澳洲幸运5官方开奖结果体彩网♛:cut its 2023 full-year profit outlook due to higher costs and utilization. 

Shares of health insurers tumbled last week following the CMS announcement, with Humana tumbling more than 13% and Aetna-owner CVS Health (CVS) losing more than 7%.

Boeing Stock Slips as Q1 Deliveries Fall to Fewest Si♉nce 2021

Boeing (BA) on Tuesday reported its fewest quarterly deliveries since 2021 amid slowed production following a series of inc🤡idents that have sparked regulatory𝄹 scrutiny over the safety of its planes.

Boeing delivered 83 planes in the first quarter of 2024, 67 of which were 737s, down from 130 planes delivered in the prior-year quarter. The deliveries are Boeing's fewest since it delivered 79 planes in the second quarter of 2021.

The first quarter of 2024 was marred by several issues for Boeing, starting 澳洲幸运5官方开奖结果体彩网:with a Jan. 5 incident in which a door plug flew off an Alaska Airlines flight. Subsequent investigations found that key bolts were missing on the plane, as well as missing or loose on other planes in the 737 Max 9 line, leading to the 澳洲幸运5官方开奖结果体彩网:fleet being grounded.

Following months of other incidents and ensuing investigations, Boeing announced 澳洲幸运5官方开奖结果体彩网:shakeups at the executive♏ level last month. 澳洲幸运5官方开奖结果体彩网:Chief Executive Officer (CEO) Dave Calhoun is now set to st♋ep down at the end of 2024, the independent chair of Boeing's board is also being replaced, and the 🌊head of its Commercial Airplanes division is retiring.

Boeing shares fell 2.4% to $177.27 as of about 2:45 p.m. ET T♋uesday and are down about 32% so far this year.

-澳洲幸运5官方开奖结果体彩网:Aaron McDade

Norfolk Southern Reaches $600 Million Settlement Over 2023 🌄Derailment

Shares of Norfolk Southern (NSC) moved higher in intraday trading Tues📖day after the railway company announced a $600 million settlement that could resolve class-action litigation over the Feb. 2023 train derailment in East Palestine, Ohio.

If approved in court, the settlement would resolve class-action litigation within 20 miles of the derailment site, as well as personal injury claims within 10 miles of the site, the company said in a press release. The derailment happened in East Palestine, which lies next to the border between Ohio and Peﷺnnsylvania.

Norfolk Southern also released preliminary first-quarter results Tuesday, reporting $3 billion in revenue, and adjusted 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS) of $2.49 after accounting for the settlement and other one-time costs. Aside from the settlement, Norfolk Southern said it also anticipates a hit of $50 million to $100 million to second-quarter revenue from 澳洲幸运5官方开奖结果体彩网:last month's collapse of the Francis Scott Key Bridge in Baltimore, depending on the duration of the port outage.

Norfolk Southern stock was up 1.5% at $253.88 Tuesday afternoon. Shares are up about 24% from a year 🔯ago when the stock was suffering the effects of the accident.

-澳洲幸运5官方开奖结果体彩网:Aaron McDade

What To Expect From Google's Cloud Next Conference

Alphabet's (GOOGL) Google is set to hold its recurring Cloud Next conference Tuesday through Thursday, with the tech giant expected to provide key updates on how it is leveraging 澳洲幸运5官方开奖结果体彩网:artificial intelligence (AI) tech in its cloud business.

Google gave investors a taste of what's to come on Tuesday morning when it 澳洲幸运5官方开奖结果体彩网:unveiled the Axion Processor, a custom Arm-based central processing unit that the company said offered "industry-leading performance and energy efficiency."

Investors' enthusiasm for Google's AI capabilities could get a boost from the event, according to Bank of America analysts, noting that Cloud Next 2024 is taking place just 7.5 months since Cloud Next was held in 2023, potentially suggesting "some advancements with Gemini LLM or other AI products" that the company is eager to highlight.

Bank of America said that "positive commentary on advances in AI infrastructure, Gemini's capabilities vs competitive LLMs, or traction with AI customers (after a strong 4Q vs estimates) could address some of the AI-related overhang on the stock."

Shares of Alphabet were up mor🙈e than 1% early Tuesday afternoon as Google Cloud CEO Thomas Kurian opened the conference with a keynote speech.

澳洲幸运5官方开奖结果体彩网:Read here for more on whaജt may come out of the conference.

-澳洲幸运5官方开奖结果体彩网:Naomi Buchanan

Tꦫilray Stock Tanks Following Earnings Miss, Outlook Cut

Shares of Tilray Brands (TLRY) plummet🅷ed Tuesday after the marijuana products maker and craft beer brewer posted worse💫-than-expected quarterly results and reduced its full-year earnings guidance as cannabis sales slipped.

Tilray reported a third-quarter fiscal 2024 loss of $0.12 per share, more than double estimates. Revenue rose 29.4% to $188.3 million, but that was more than 5% below forecasts.

Tilray now expects full-year adjusted earnings before interest, 🤡taxes, depreciation, and amortization (EBITDA) to be in a range of $60 million to $63 million, down from its previous outlook of $68 million to $78 million. In addition, the company no longer anticipates generating positive adjusted 澳洲幸运5官方开奖结果体彩网:free cash flow bec🍸ause of “delayed timing for collecting cash ꦚon various asset sales.”

The news sent Tilray Brands shares down 20.5% to $2.0🍌6 as of midday Tuesday, and into negative territory for the year.

-澳洲幸运5官方开奖结果体彩网:Bill McColl

Gold𓂃 Hits Fresh Record as Markets Await Infla🉐tion Data

Gold climbed to a record high of more than $2,380 ꦿin early trading Tuesday, extendꦺing a bull run that has outpaced the S&P 500 so far this year. 

The precious metal has risen more than 15% since the end of February, and Bank of America on Tuesday said prices could climb another 26% to $3,000/oz by next year. 

Gold, they say, has been boosted by a confluence of factors including geopoli🥃tical risk and strong demand from central banks, and could get an even bigger boost from interest rate cuts later this year. 

China has shown a particular appetite for gold recently. The People’s Bank of China added more than 200 tons of gold to its reserves in 2023, nearlꦏy twice as much as the second-biggest buyer, Poland. Chinese ཧretail investors have also turned to gold amid a downturn in Chinese equities and instability in its massive property market. 

And yet, BofA points out, “the ongoing hiking cycle has kept many investors on ꦛthe s﷽idelines.”

Gold demand is generally hurt by higher interest rates because gold is a 澳洲幸运5官方开奖结果体彩网:non-yielding asset that beco🔯mes relatively less attractive as yields on other low-risk assets, like Treasurys, rise. That relationship can be seen in the recent breakdown of the correlation between gold ETF exposure and prices. Assets under management at physically backed gold ETFs have declined relatively steadily throughout the Fed's tightening ꦇcycle while gold prices have climbed.

“In ou🎶r view, this is heavily influenced by continued apprehension over the direction of monetary policy,” the BofA analysts wrote. “Yet, if the Fed ult🀅imately starts cutting rates, investors should return to the market.”

However, interest rate cuts this year are far from a sure bet after two months of 澳洲幸运5官方开奖结果体彩网:mixed inflation data. Market participants and the Fed will be watching tomorrow’s 澳洲幸运5官方开奖结果体彩网:March Consumer Price Index (CPI) closely for evidence disinflation hasn’t s🐭talled. 

Tesla Stock in Focus After S💃ettl🐷ing Autopilot Lawsuit—Key Levels to Watch

Shares in 澳洲幸运5官方开奖结果体彩网:electric vehicle (EV) maker Tesla (TSLA) remain in focus Tuesday morning after court documents revealed that the company has settled a wrongful death lawsuit relating to a 2018 澳洲幸运5官方开奖结果体彩网:autopilot car accident that killed Apple engineer Walter Huang after his vehicle veered off a highway near San Francisco.

The settlement comes just days before the closely followed case centering around the automaker’s driver assistant technology was scheduled to go to trial in a California Superior court, potentially saving Tesla from damming evidenꦗce and testimonies that could cause reputational damage and establish precedent in similar existing and future cases.

The settlement follows Tesla CEO 澳洲幸运5官方开奖结果体彩网:Elon Musk's announcement Friday that the electric car maker plans to 澳洲幸运5官方开奖结果体彩网:unveil a self-driving robotaxi on Aug. 8.

"The last thing they would want right now is to have a public trial showing all of the problems with Full Self-Driving," said Guidehouse Insights analyst Sam Abuelsamid, according to Reuters.

Tesla shares have oscillated within an orderly 澳洲幸运5官方开奖结果体彩网:descending channel since July last year, apart from a 澳洲幸运5官方开奖结果体彩网:bull trap fake-out above the pattern’s top trendline in December. During periods of weakness, monitor the $160 level, an area on the chart where the price may find support from the channel’s lower trendline. Amid a move back to the upside, keep an eye on the $21💎3 region where sellꦅers could emerge to book profits near the pattern’s top trendline.

The stock was up 3.3% at $178.53 early in the session Tuesday. With Tuesday's intraday gains, Telsa shares had lost 28% of their value since the beginning of the year.

-澳洲幸运5官方开奖结果体彩网:Timothy Smith

Stocks Making the Biggest Moves Premarket

Gains:

• Freeport-McMoRan Inc. (FCX): Shares of the mining giant rose more than 3% as copper prices climbed to their highest since January 2023, driven by decarbonization demand and the prospect of Chinese refiners cutting production. 
• Alamos Gold Inc. (AGI): Shares of the gold miner rose about 2% as the price of gold climbed to a record high amid geopolitical tensions and strong central bank demand. 
• Alphabet Inc. (GOOGL): Shares of the tech giant rose more than 1% ahead of the kick-off of its Google Cloud Next conference, where it is 澳洲幸运5官方开奖结果体彩网:expected to provide seveꦺral updates of on AI uses in its cloud business.
  

Losses:

• Tilray Brands Inc. (TLRY): Shares of the cannabis producer tumbled 15% after reporting a wider-than-expected quarterly loss and disappointing full-year guidance. 
• Coinbase Global Inc. (COIN): Shares of the cryptocurrency exchange slipped more than 1% as the price of bitcoin and other digital coins retreated after surging yesterday. 

Stock Futures Tick Up in Premarket Trading

Futures contracts connected to the 𝄹Dow Jones Industrial A🐬verage were up about 0.1% in premarket trading on Tuesday.

S&P 500 futures traded 0.2% higher.

🌟 Nasdaq 100 contracts were up 0.3% a🍌bout an hour before markets opened.