Stocks surged in New York City today as investors eagerly awaited the upcoming Federal Reserve meeting and the unveiling of major corporate earnings reports. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all saw gains, with Tesla’s stock skyrocketing 15% following a significant milestone announcement. Apple also experienced a 2.5% increase in its stock value after receiving an upgrade from investment firm Bernstein ahead of its earnings report later this week. Additionally, traders are keeping a close eye on earnings reports from Amazon, Advanced Micro Devices, and Starbucks scheduled for release after the market closes today.
In other news, McDonald’s reported mixed financial results, with revenue slightly surpassing expectations but earnings per share falling short of estimates. The fast-food chain faced challenges in the U.S., where low-income customers reduced their spending. Overseas, McDonald’s encountered backlash and temporary closures in the Middle East due to boycotts stemming from discounts offered to soldiers by its Israeli licensee.
Meanwhile, media giant Paramount Global announced a change in leadership, with CEO Bob Bakish being replaced by an “Office of the CEO” consisting of three executives. This shift comes as Paramount approaches a merger with Skydance Media. The company also disclosed mixed quarterly results, exceeding earnings projections but missing revenue targets.
Automotive industry updates revealed a 20% decrease in operating profit for Volkswagen in the first quarter, attributed to lower demand for its luxury brands. Porsche, a subsidiary of Volkswagen, experienced a 30% decline in operating profit. Stellantis, a global automaker, reported a 12% decrease in revenue due to lower sales and foreign exchange fees impacting net pricing stability.
Lastly, Walmart unveiled a new grocery brand called BetterGoods, offering trend-driven and chef-inspired food items priced at less than $5 each. The retail giant’s focus on affordable groceries has been beneficial amid rising inflation, with approximately 60% of its U.S. sales stemming from the grocery sector in the previous fiscal year.