Last Week: -0.39%
YTD: 11.30%
1 Year: 26.84%
Dow Jones Industrial Average
Last Week: -0.80%
YTD: 3.51%
1 Year: 19.29%
Last Week: -1.15%
YTD: 11.44%
1 Year: 29.20%
Last Week: 0.16%
YTD: 2.78%
1 Year: 18.76%
YTD: 13.05%
1 Year: 31.99%
YTD: 7.61%
1 Year: 20.79%
U.S. Inflation
The Federal Reserve’s favorite inflation measure, personal consumption expenditures price index, rose 0.3% in April. This was in line with expectations from analysts and up 2.7% from a year ago. Removing more volatile food and energy, core PCE rose 0.3% and 2.9% annually. Interestingly food prices declined month-over-month, decreasing 0.2% from March to April. The stock markets seemed on edge most of last week, waiting for this inflation measure. Personal income increased 0.3% on the month, which outpaced inflation by 0.1%.
American Airlines Shakeup
American Airlines cut its revenue and profit forecast last week. After their earnings call, they also parted ways with their Chief Commercial Officer, Vasu Raja. This summer is supposed to be one of the busiest travel seasons ever, and their competition, Delta and United, plan to capitalize on the increased travel demand. Raja had cut the airline carriers’ sales team and was focused on driving travel bookings directly through their website instead of offering deals through third-party websites and travel agents. American Airlines has also been losing business travelers who tend to book last-minute flights at increased prices. American Airlines also said its revenue could fall as much as 6% in the second quarter from a year earlier.
Software Stocks Drop
Last week was not kind to software and enterprise technology companies. Salesforce shares dropped nearly 20% due to weaker-than-expected revenue and disappointing guidance. Numerous other companies in software and cloud-based security companies reduced full-year revenue forecasts. Several of their CEOs discussed Generated AI as a competing priority and are seeing shifts in spending plans. Companies that worked from home during COVID-19 rushed to buy software for their employees to work remotely and are now reevaluating their software needs.
