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Stocks notched their first win of the week on Wednesday as Treasury yields and oil prices pulled back. Market participants also took an optimistic stance ahead of tonight’s quarterly results from AI bellwether Nvidia (NVDA), which could help set the tone for the broader market’s short-term price action.
After surging to their highest levels in roughly a year, bond yields took a breather today. The yield on the 2-year Treasury bond fell 7.8 basis points to 4.044%, with the yields on the 10-year (-9.3 basis points to 4.576%) and 30-year (-6.5 basis points to 5.116%) Treasury bonds also declining.
Meanwhile, front-month West Texas Intermediate crude futures dropped more than 5% to $98.26 per barrel.
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These declines had a positive impact on the stock market, with the blue-chip Dow Jones Industrial Average adding 1.3% to 50,009, the broader S&P 500 rising 1.1% to 7,423, and the tech-heavy Nasdaq Composite climbing 1.5% to 26,270.
Nvidia was one of 22 Dow Jones stocks that gained ground today, adding 1.3% ahead of its after-the-close earnings release. You can follow all the latest NVDA news on our live earnings blog.
But it was Goldman Sachs (GS, +5.8%), Nike (NKE, +4.2%) and Boeing (BA, +3.3%) that ended the day at the top of the 30-stock index.
Analysts are bullish on one of Berkshire’s newest stocks
Over on the S&P 500, United Airlines (UAL) and Delta Air Lines (DAL) were on the leaderboard, rising more than 9% apiece.
DAL made waves after last Friday’s close when it was revealed that Berkshire Hathaway (BRK.B, +0.09%) initiated a position in the air carrier in the first quarter. According to regulatory filings, the holding company bought 39.8 million shares of Delta in Q1, making the industrial stock the 14th-largest position in the Berkshire Hathaway equity portfolio.
But Berkshire’s not the only one bullish on Delta. Of the 26 analysts following the stock who are tracked by S&P Global Market Intelligence, 25 say it’s a Buy or Strong Buy and just one rates it at Sell. This works out to a consensus Strong Buy recommendation.
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Speaking for the bulls is Susquehanna analyst Christopher Stathoulopoulos, who has a Positive (Buy) rating on DAL.
“We view DAL’s ‘3Ds’ (diversified, durable, and differentiated) as core to the carrier’s ability to navigate what could be a new (mid-term) norm — a volatile macro and geopolitical backdrop,” he wrote in a recent note.
TJX pops after earnings, Target drops
Elsewhere on the S&P 500, TJX (TJX) rose 5.7% — its best day since August 21, 2024 — after the off-price retailer reported earnings.
“TJX results were incredibly strong this quarter, beating and raising in every category and underscoring the durability of its off-price model,” says Brian Mulberry, chief market strategist at Zacks Investment Management. “These results allow for expansion plans to continue globally as TJX looks to continue to capture more market share.”
The retail stock remains a top pick on Wall Street. The consensus recommendation among the 21 analysts covering TJX who are tracked by S&P Global Market Intelligence is Strong Buy.
Target (TGT, -3.9%), on the other hand, scores a consensus Hold recommendation. Following this morning’s first-quarter beat and upwardly revised guidance, CEO Michael Fiddelke warned about the near-term operating environment, “with consumers weighing multiple headwinds and tailwinds and recent dips in consumer sentiment.”
“While consumers have proven to be resilient so far, sentiment has been declining recently, and we’re keeping a close eye on their spending behavior,” added Chief Financial Officer Jim Lee on the earnings call.
And even with the retailer’s impressive Q1 numbers, David Wagner, head of equity and portfolio manager at Aptus Capital Advisors, feels “that Target will still be expected to slash prices and spend billions on store and supply chain upgrades, which compresses its profit margins and leaves it with low growth prospects compared to its rivals.”