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Top 10 Market Highlights for Friday, March 21
1. On Wall Street, expectations are set for a downward start as the Nasdaq has seen declines throughout the week. The S&P 500 remains on the brink of change while the Dow Jones is showing some positive movement this week. Microsoft is particularly focused on averting what would be its longest streak of losses since 2008.
2. President Donald Trump is advocating for a reduction in interest rates by the Federal Reserve. However, the Fed is adopting a cautious approach, preferring to monitor the implications of Trump’s policies first. Recently, officials opted to maintain current rates and projected potential cuts in 2025.
3. Despite posting better-than-expected quarterly results, Nike has set a cautious tone with its future guidance, citing excessive inventory levels. This raises questions about the company’s innovation. Similar to Tesla, the stock remains appealing to portfolio managers, but its high valuation is a concern. New CEO Elliott Hill is still navigating through these challenges.
4. Elon Musk has advised Tesla employees to retain their stock, even as they face backlash from Wall Street and consumers in the EV market. Vandalism incidents at Tesla locations have been reported, reflecting tensions surrounding Musk’s political stance.
5. Accenture’s stock experienced slight declines early Friday, following a significant drop of over 7% the previous day. The company attributed this downturn to federal government spending cuts adversely affecting its business operations.
6. Lennar has reported a shortfall in quarterly deliveries, causing its stock to fall by 4%. High mortgage rates continue to be a barrier for buyers, contributing to challenges faced by home improvement giant Home Depot as well. CEO Ed Decker noted that home prices remain unreasonably high.
7. FedEx shares fell by 9% after the logistics company’s quarterly performance was severely impacted by weaknesses in industrial sectors. While online consumer demand remains robust, there are lingering uncertainties regarding the effects of tariffs on their operations.
8. Micron’s stock dropped by over 3%. Although the demand for high bandwidth remained strong, excess inventories of NAND chips have raised concerns. Initial reactions to the quarterly report indicated a move to push the stock higher, which ultimately did not hold.
9. Morgan Stanley expressed favorable views on Darden’s performance, increasing its price target for the parent company of Olive Garden and LongHorn Steakhouse. The analysts were enthusiastic, interpreting Darden’s outlook on casual dining as positive for competitors like Texas Roadhouse.
10. Goldman Sachs has upgraded Danaher to a buy-equivalent rating, suggesting that the stock has been effectively de-risked. Although the stock has faced challenges recently after years of solid performance, there are no plans to divest.
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