S&P 500 Notches New All-Time High | Beyond the Bell

Summary

The transcript discusses the closing of a record-setting day for the S&P 500, with a focus on the performance of big cap stocks like Microsoft, Google, and Amazon, which are expected to invest heavily in CapEx. Small caps and Bitcoin are not participating in the stock market's rally. Tech and consumer discretionary sectors lead gains, while Oracle hits a record close. Declines are noted for Boeing and Southwest shares, affected by manufacturing issues and delivery challenges. The conversation also touches on the impact of rising prices on music festivals and the potential for a central bank cutting cycle hinted by ECB.

Takeaways

• 📈 The S&P 500 is on track for another record-setting day, with a 1.1% gain and 57 points higher at 5001.75.
• 📊 Small caps are not participating in the stock market rally, unlike the large caps which are seeing significant gains.
• 💰 Bitcoin continues to hit new records, trading above $71,000 and up 70% so far this year.
• 💼 Corporate bond issuance remains steady despite a slightly higher than expected inflation report for February.
• 🚀 Big tech companies like Microsoft, Google, and Amazon are expected to spend heavily on CapEx, potentially driving their stock prices higher.
• 📊 The Russell 2000 index is relatively unchanged, sitting out the rally, while Chinese stocks traded in the US and Nasdaq have rallied about 20% from their lows.
• 🏦 Oracle is the top gainer in the S&P 500, closing at a record high after beating earnings expectations and announcing joint ventures.
• 📈 In the S&P 500 sectors, infotech, communication services, and consumer discretionary all saw gains of at least 1%, with tech as a group up by 2.5%.
• 📉 Boeing shares fell over 4%, trading at October lows, affected by manufacturing issues and delivery challenges with the 737 Max.
• 📉 Southwest Airlines shares dropped close to 15%, the most since March 2020, due to capacity reduction plans and reliance on Boeing's 737 Max aircraft.
• 🥿 Swiss shoe company Bally misses Q4 net sales estimates, but analysts see positive momentum despite the results.

Q & A

What is the current status of the trading day mentioned in the transcript?

The transcript mentions that the discussion is taking place just 2 minutes away from the end of the trading day.

Which index is reported to have a record-setting day?

The S&P 500 is reported to have a record-setting day, with a 1.1% gain and 57 points higher at 5001.75.

How are small caps performing compared to large caps?

Small caps are not participating in the run up in stocks as much as large caps are, with the Russell 2000 remaining relatively unchanged.

What is notable about Bitcoin's value during the time of the transcript?

Bitcoin's value is noted to be above $71,000 per Bitcoin, with a 70% increase so far in the year mentioned in the transcript.

Which sectors within the S&P 500 saw the biggest gains?

The biggest gains were seen in the infotech, communication services, and consumer discretionary sectors, all up by at least 1%, with tech as a group up by two and a half percent.

Which company's shares are mentioned as being the biggest gainer in the S&P 500?

Oracle is mentioned as the biggest gainer in the S&P 500, closing at a record high.

What happened to Boeing's shares according to the transcript?

Boeing's shares finished the day down by more than 4%, trading at October lows, and are down almost 30% so far in the year mentioned.

What is the impact of the 737 Max crisis on Southwest Airlines?

Southwest Airlines' shares fell significantly due to the 737 Max crisis, with the company planning to reduce capacity by at least one percentage point and facing challenges due to Boeing's delivery schedule.

What is the notable performance of in-video in the transcript?

In-video experienced a climb back, with its shares up 7% at the close of trading after a two-day rout that wiped about $172 billion off the value of the world's most valuable chipmakers.

How did the market react to the inflation report mentioned in the transcript?

The market reacted to the inflation report by initially selling off, causing yields to move higher across the curve. However, there was also mention of the European Central Bank potentially cutting rates in the spring, which could influence market behavior.

What is the significance of the discussion about music festivals in the transcript?

The discussion about music festivals highlights the economic impact of the pandemic on the entertainment industry, with many festivals being canceled due to rising costs and artists demanding higher prices to compensate for lost income.