Monday markets open with an exceptionally impressive Q1/2024 return from the S&P 500 (SPY). The index, which holds 20.3% in technology services and 18.6% in electronic technology, gained a solid 9.77%.
Watch companies with the biggest weighting on the index. In the quarter, the winners included Meta Platforms (META), up 35.7%, Nvidia (NVDA), up by 82.8%, and AMD (AMD), up by 23.6%. Microsoft (MSFT) gained 12.5%.
Apple (AAPL) lost 11.2%. The firm could not shake off the lack of artificial intelligence solutions in its products or platform. More recently, the Department of Justice’s anti-trust only distracts the firm from catching up in the AI market.
EV enthusiasts have an uphill battle expecting Tesla (TSLA) to rebound from a 32.8% Q1 decline. Consumers are shunning automotive purchases. With interest rates so high, auto loans are too expensive.
Watch Banks
The Fed’s decision to pause interest rates is a headwind for weak regional banks. While New York Community Bancorp (NYCB) will struggle, JP Morgan (JPM), up 18% in Q1, will thrive. Expect Wells Fargo (WFC), Citi (C), and Bank of America (BAC) stock to continue their climb today.
In the aerospace sector, Transdigm Group (TDG) and Howmet Aerospace should continue rising. Government spending on defense is rising. Conversely, Boeing (BA), which lost 26.4% in Q1, needs a shakeup in executive management. Quality assurance measures are insufficient in Boeing’s manufacturing process.
