The benchmark S&P 500 edged higher on Tuesday as investors weighed mixed indicators on the economic outlook. Economic-sensitive energy and material stocks led the gains, while technology stocks weighed on the Nasdaq. CarMax Inc advanced as the used-car retailer reported a quarterly profit that beat estimates. Crypto stocks also moved higher as bitcoin hit a 10-month high.
A strong labor market report on Friday sparked bets that the U.S. Federal Reserve will increase rates by 25 basis points in May. However, investors are awaiting inflation data on Wednesday which is likely to determine the Fed’s next policy move. US Treasuries yields nudged higher, while money market traders priced in a nearly 70% chance of a rate hike in the May meeting, according to CME Group’s Fedwatch tool.
Analysts expect S&P 500 companies to post earnings decline of 5.2% year-on-year for the first quarter, which would be the worst contraction since the third quarter of 2020. Investors will also examine earnings reports from major banks such as Citigroup Inc, JPMorgan Chase & Co, and Wells Fargo & Co on Friday.
CarMax Inc (CarMax) is an American operator of 37 used car stores in 19 states, primarily in the United States. CarMax is the largest retail used car chain in America and Canada, with over 140 stores and 2,500 used cars in stock. CarMax also operates 23 collision repair centers and 8 service centers throughout the country. CarMax offers customers a wide variety of used cars and trucks, in addition to access to experts to help customers learn more about options, and cars that have passed a rigorous inspection process.
Randy Frederick is the Managing Director of Trading and Derivatives at Charles Schwab. As the leader of the Schwab Trading Services team, Randy is responsible for establishing and executing Schwab’s trading strategy, including evaluation and implementation of new trading technologies and platforms. Randy regularly provides commentary to investors and the media on trading strategy and the industry. He has been with the firm since 2000. Prior to that, he was the Chief Futures Strategist at Fimat Futures.