TLDR

MARKET RECAP → Stocks popped Friday as all the S&P 500 (VOO) and Nasdaq Composite (QQQ) closed out their best week since November. The rally came on the back of this week’s batch of strong tech earnings and mixed economic data.

ALPHABET SURGES → 🦐 📈 Alphabet's (GOOG) stock leapt 10% post-strong Q1 earnings, debuting a dividend and a $70 billion buyback amid analyst cheers, signaling a robust financial spring and high confidence in its expansive future.

INFLATION PERSISTS → 📊 March's core PCE held steady at 2.8%, with consumer spending outpacing forecasts at 0.8%, suggesting enduring inflation as households tap into savings to keep up with rising costs.

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MARKETS

Today’s S&P 500 Heatmap

Notable Earnings This Week

TODAY’S TOP NEWS

Alphabet Surges

📈 Earnings and Stock Rally: Alphabet's (GOOG) stock soared by 10% following a report of strong first-quarter results, which included an impressive revenue of $80.54 billion—a 15% year-over-year increase and the fastest growth rate since early 2022. This performance exceeded analysts' expectations of $78.59 billion and marked the most significant rally since July 2015.

💸 First Dividend and Buyback: For the first time, Alphabet announced a dividend and a substantial $70 billion stock buyback. The company will pay a 20-cent per share dividend on June 17 to shareholders of record as of June 10, signaling a new phase of shareholder returns combined with aggressive stock repurchase plans.

🚀 Analysts’ Optimism: Analysts from major firms like Barclays, Morgan Stanley, and Oppenheimer lauded Alphabet’s ability to balance growth and efficiency, significantly raising their price targets. This broad analyst endorsement underscores confidence in Alphabet's continued growth, especially in its advertising and cloud segments, despite heavy investments in artificial intelligence.

TODAY’S TOP NEWS

Inflation Persists

📈 Steady Core PCE Inflation: In March, the core personal consumption expenditures (PCE) price index, which excludes food and energy, held steady at an annual increase of 2.8%, matching February's rate and slightly above expectations. The Federal Reserve closely watches this metric as an indicator of underlying inflation trends.

⚡ Total PCE Inflation Also Above Expectations: Including food and energy, the overall PCE price index rose by 2.7% year-over-year, surpassing the anticipated 2.6%. Monthly, both core and total PCE metrics showed a 0.3% rise, consistent with the previous month, indicating persistent price pressures across the board.

💸 Consumer Spending Remains Strong: Despite high inflation, consumer spending increased by 0.8% in March, slightly above forecasts. However, the personal saving rate dropped to 3.2%, indicating that households are dipping into their savings to maintain spending levels, reflecting the ongoing impact of inflation on personal finances.

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