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A weak start for stocks turned into a positive performance Friday as investors accepted a slew of economic data and rejoiced at news that the government had avoided another shutdown.
Friday’s economic calendar The venue was packed as several updates on manufacturing and several Fed officials spoke throughout the day.Most notable was the Supply Management Institute’s Manufacturing Purchasing Manager Index The PMI fell by 1.3% from January to February to 47.8%. This is the 16th consecutive month the index has been below the 50 level, which indicates contraction.
In addition to the slowdown in demand, “the production index has fallen back into contraction territory after expanding in January, while the employment index has contracted for the fifth straight month, showing a decline in manufacturing payrolls in February. ” he said. Jay Hawkins, senior economist at BMO Capital Markets.Economists think manufacturing will continue to struggle until the Fed starts cutting rates Interest level.
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Dell soars on profits and dividend increase
In individual stock news, Dell (DELL) soared 31.5% following the PC maker’s earnings report. In the fourth quarter, Dell reported better-than-expected earnings of $2.20 per share on revenue of $22.3 billion. The company cited “momentum in AI-optimized servers” for its strong performance, with orders up 40% from the third quarter and Dell’s backlog nearly doubling.
Additionally, Dell increased its annual dividend by 20% to $1.78 per share.
“We believe Dell is uniquely positioned for the generative AI opportunity because it operates on ‘both sides of the fence’ between the PC market and the enterprise IT infrastructure market.” states. argus research Analyst Jim Kelleher (buy). For the current fiscal year, Kelleher expects “PC growth and favorable mix, enterprise recovery, and AI acceleration to drive full-year revenue recovery and profit expansion.”
NYCB stock closes at 27-year low
on the other hand, new york community bank (NYCB) fell 26% to $3.545, its lowest close since January 1997, following some worrying headlines. The local bank said Thursday that Alessandro said: Dinero replaces Thomas Cangemi Immediately appointed CEO.
Apart from this, the company Regulatory submissions Management said it had “identified material weaknesses in the Company’s internal controls related to internal loan review resulting from ineffective oversight, risk assessment, and monitoring activities.” NYCB added that it will announce improvement plans to address these “material weaknesses” in future filings.
The troubles for the beleaguered bank stock began in late January, when the company posted an unexpected quarterly loss. reduced the dividend This was due to an unexpected sudden increase in the allowance for doubtful accounts.
“Comments from banks last month indicate they are struggling to meet new reserve requirements mandated following the acquisition.” [of Signature Bank in March 2023]” says Brian Mulberry, Client Portfolio Manager. Zacks Investment Management. “The CEO didn’t seem to realize that the consequences would be as burdensome as the company’s balance sheet essentially doubled, crossing different thresholds for reserve requirements.”
The main indicators are: Dow Jones Industrial Average The number of people increased by 0.2% to 39,087. S&P500 (+0.8% to 5,137) Nasdaq Composite (+1.1%, 16,274), setting a new record.
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