Tech Giants and Market Moves: A Week of Financial Ups and Downs

Last week, the stock market had a mixed performance. The S&P 500 stayed flat, the Nasdaq dipped slightly, and the Dow Jones took a notable hit. This was largely due to some big drops from UnitedHealth and Nvidia. UnitedHealth cut its yearly earnings forecast after a tough quarter, causing its stock to plummet over 20%. This drop weighed heavily on the broader index. Nvidia also faced trouble, with its stock falling nearly 7% after news of U. S. restrictions on AI chip exports to China. These restrictions have cost Nvidia over $250 billion in market value since they were announced. It wasn't all bad news, though. Hertz saw a significant boost after Bill Ackman, CEO of Pershing Square, revealed a major investment in the company. This move showed confidence in Hertz's recovery from pandemic-related challenges. Eli Lilly also had a good week, with its stock jumping after successful trials for a new weight-loss drug. This puts Eli Lilly in a strong position in the growing obesity drug market. This week is packed with earnings reports and economic data. Tesla, Alphabet, Lockheed Martin, Boeing, AbbVie, and Procter & Gamble are all set to release their results. Investors will be keeping a close eye on these reports, along with key economic indicators like PMI, jobless claims, and the Fed's Beige Book. The Beige Book, published eight times a year, provides a ground-level view of the economy through anecdotal reports from businesses across the country. Tesla's results are highly anticipated, with signs pointing to a challenging quarter. Vehicle registrations in California, Tesla's largest U. S. market, have been declining for six straight quarters. This drop is due to increased competition, an aging product lineup, and the controversial public image of CEO Elon Musk. Other companies to watch this week include SAP, Novartis, GE Aerospace, and Verizon. These companies will provide insights into various sectors, from global defense and aviation spending to telecom customer growth and capital costs. IBM and AT&T will also be in the spotlight, serving as indicators for the enterprise tech and telecom sectors. These sectors have promised stability but face pressure to cut costs and defend margins. Boeing's report will be closely watched for updates on aircraft deliveries and production pace. Recent geopolitical tensions, including reports that China has asked its airlines to halt Boeing orders, add uncertainty to the company's outlook. The Fed's Beige Book, released later in the week, will offer a look at wage pressures, hiring, and consumer demand. Alphabet will report under the shadow of a major legal setback. A U. S. federal judge allowed an antitrust case against Google's ad tech business to proceed, adding uncertainty to the company's operations. Other companies reporting this week include Procter & Gamble, Merck, T-Mobile, and PepsiCo. These reports will provide a cross-sector view of consumer spending, pricing power, and healthcare demand. Fresh data on jobless claims and durable goods orders will also be released, offering insights into the labor market and business spending. The week wraps up with earnings from Charter, Aon, and HCA, along with reports from AbbVie, Colgate, and various energy and services firms. These reports will provide a final read on how the first quarter of the year played out and set the tone for what's to come.