"An investment in knowledge pays the best interest."- Benjamin Franklin
This quote by Benjamin Franklin captures the timeless value of education and learning. It suggests that of all the places to invest your time and resources, knowledge offers the greatest return.
In the context of investing and the stock market, this wisdom holds especially true. Understanding businesses, market cycles, and financial principles gives investors a lasting edge. Rather than chasing trends or hot tips, it's the well-informed investor who is best positioned to make sound decisions and build long-term wealth.
Market Wrap
Markets Navigate Economic Bright Spots and Political Storm Clouds
Tariff Warning to Trade Partners:
President Trump announced plans to impose tariffs on countries that have not finalized trade deals with the U.S. within the next two to three weeks. The announcement increases uncertainty around global trade dynamics and has potential implications for international supply chains and corporate profits.
Energy Policy Shift to Boost Output:
The Department of the Interior introduced a new policy allowing the commingling of oil from different offshore leases. The move is intended to boost U.S. oil production by increasing efficiency in energy extraction operations.
Diplomatic Progress with Iran:
President Trump expressed optimism about ongoing efforts to broker a new nuclear agreement with Iran, stating that negotiations are progressing ahead of technical talks in Oman. A successful deal could ease geopolitical tensions in the Middle East and impact global energy markets.
Durable Goods Orders Rise:
The U.S. Census Bureau reported that durable goods orders increased by 2.6% in March, primarily driven by a surge in aircraft orders. However, core capital goods orders, which exclude defense and aircraft, rose only 0.1%, indicating tepid business investment.
Labor Market Remains Stable:
The Department of Labor announced that initial jobless claims rose by 6,000 to 222,000 for the week ending April 19. The increase was modest, suggesting that the labor market remains relatively stable despite economic uncertainties.
Manufacturing and Services PMI Improve:
The S&P Global Flash U.S. Manufacturing PMI for April edged up to 50.7 from 50.2 in March, indicating slight expansion. The Services PMI also showed improvement, reflecting resilience in the services sector despite broader macroeconomic challenges.
Alphabet Inc. shares gained over 4% in after-hours trading as the company reported Q1 earnings that beat analyst expectations. The strong performance was attributed to growth in its core advertising business and continued expansion in cloud services.
Procter & Gamble Co. shares declined 3.7% after the consumer goods giant lowered its full-year profit forecast. The company cited increased costs due to tariffs and weakening consumer demand as primary factors impacting its financial outlook.
ServiceNow Inc. shares surged after the company announced better-than-expected quarterly earnings, driven by increased demand for its AI-enabled enterprise software solutions. The positive results underscored the company's strong position in the growing AI market.
Texas Instruments Inc. shares rose 6.6% following a strong earnings report that exceeded analyst expectations. The semiconductor company cited robust demand across its analog and embedded processing segments, leading to optimistic revenue forecasts for the upcoming quarter.
Union Pacific Corp. shares declined as the railroad company reported flat Q1 revenue at $6 billion, missing analyst expectations. The company attributed the lackluster performance to reduced shipments and lower fuel surcharge revenues.
Gilead Sciences Inc. shares fell approximately 3% in after-hours trading after reporting Q1 2025 earnings. While adjusted EPS of $1.81 slightly surpassed expectations, revenue remained flat at $6.67 billion, missing estimates. The decline was attributed to underwhelming sales in oncology and cell therapy segments, despite growth in HIV and liver disease treatments. Additionally, the company lowered its full-year EPS guidance, contributing to the negative market reaction.
Intel Corp. shares traded lower in after-hours sessions after reporting a quarterly loss, with earnings per share falling below analyst estimates. The semiconductor giant faced challenges due to declining PC sales and increased competition in the chip market.
Hasbro Inc. shares rose after the toy maker reported better-than-expected earnings and announced a new licensing agreement with Walt Disney. The partnership is expected to boost Hasbro's product offerings and revenue streams in the coming quarters.
Unlock Exclusive Insights!
You can preview data for the Magnificent Seven now :
