economy
Software stocks stage a comeback. Plus, why Boeing's CEO going to China matters
Every weekday, the Investing Club releases the Homestretch; an actionable afternoon update just in time for the last hour of trading.
TL;DR
- The S&P 500 is retreating from record highs, influenced by geopolitical news regarding Saudi Arabia and Kuwait.
- Oil prices reversed midday, with West Texas Intermediate crude climbing back above $97 per barrel.
- Interest rates are rising, with the 10-year Treasury note yield nearing 4.4%.
- AI buildout stocks are taking a break, while software stocks, especially cybersecurity firms like CrowdStrike and Palo Alto Networks, are staging a comeback.
- Boeing's stock is trading higher as its CEO is expected to join President Trump on a trip to China, potentially leading to a large aircraft order.
- Market skepticism exists regarding Boeing's potential China order, influenced by Airbus's recent large order.
- CEOs from major companies including Apple, Nvidia, and Exxon Mobil may attend the China summit, but optimism for Nvidia's AI chips returning to China is tempered.
- Upcoming economic data includes the April nonfarm payroll report, with expectations of job additions and stable unemployment.
- Several companies including Coinbase, Affirm Holdings, and Airbnb are scheduled to report earnings.