According to Michael Landsberg, the chief investment officer of Landsberg Bennett Private Wealth Management, corporate earnings must improve in order to see a broader stock market rally. Landsberg pointed out that the S&P 500 has experienced three consecutive quarters of decelerating earnings, which has limited the market’s potential gains. He also noted that the recent declines in the broader market can be attributed to the cooling off of the tech sector and increased competition from higher interest and money market rates. Landsberg mentioned that his firm has rebalanced its client portfolios by reducing tech exposure, as it is a normal cycle activity for sectors to heat up and cool off.
In extended trading, several stocks made significant moves. Costco’s shares fell nearly 2% despite reporting better-than-expected earnings and revenue in the previous quarter. The company’s e-commerce sales also experienced a decline compared to the same period last year. On the other hand, furniture company MillerKnoll saw a 16.2% rally in its shares after surpassing analysts’ estimates for earnings and revenue in the previous quarter, although its second-quarter revenue guidance fell short. Aircraft services company AAR Corp gained 2.4% after beating analyst forecasts on earnings and revenue in the first quarter of the fiscal year 2024.
U.S. stock futures saw minor gains, with Dow Jones Industrial Average futures adding 46 points, or 0.13%. Meanwhile, S&P 500 and Nasdaq 100 futures increased by 0.13% and 0.06%, respectively.
