S&P 500 wavers as PayPal plunge dents financials, but 5,000 mark remains in view
was roughly unchanged Thursday, weighed down by financials, though continued to keep the 5,000 level in sight as the quarterly earnings season continued.) fell more than 10% to lead the broader financial sector lower after the payment processing company said it expects full-year earnings to be $5.10 a share, missing estimates of $5.48. The softer guidance offset quarterly results that beat estimates on both the top and bottom line.
The guidance"calls for roughly flattish growth for both transaction gross profit dollars and non-GAAP EPS," UBS said in a note, suggesting fiscal 2024 will be the third consecutive year of total company gross profit growth hovering around the ~0% growth level."), meanwhile, jumped more than 12% after the media and entertainment company's delivered better-than-expected fiscal Q1, hiked its quarterly dividend by 50% and reinistated a $3B share buyback plan this year.
Disney also announced new deals and upcoming events that is likely to boost performance including a major foray into the gaming business, with a $1.5B stake in EPIC Gamess. Most of the newsflow was"nearly all positive," Macquarie Equity Research said in a note, but still questioned"the offset to the linear networks from direct-to-consumer advances, and the time it will take to bring about meaningful.
The recent strength in the labor market, which threatens to boost wages and inflation, has muddied investor expectations on aggressive Federal Reserve rate cuts this year. Richmond Fed president Tom Barkin on Thursday acknowledged that"robust" economic growth and a strong tight labor market gives the Fed time to hold off starting the"process of toggling rates down."We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other.