Utilities
were
the
sole
winning
S&P
500
sector
in
April
Of
the
11
sectors
within
the
S&P
500,
utilities
managed
to
eke
out
a
narrow
gain
for
this
month.
Utilities
added
1.6%
in
April,
while
the
other
10
sectors
were
in
the
red.
Energy
managed
a
narrow
loss
of
0.9%,
while
consumer
staples
–
another
defensive
category
–
slipped
1.1%.
The
sector’s
gains
were
buoyed
by
NextEra
Energy,
which
advanced
4.8%
in
April.
Consolidated
Edison
jumped
3.9%,
and
Dominion
Energy
gained
3.6%.
Utilities,
known
for
their
steady
dividends,
could
come
into
focus
as
investors
look
for
income-producing
assets
to
cushion
their
portfolios
during
rocky
markets.
Consider
that
NextEra
Energy
touts
a
dividend
yield
of
3.1%,
while
ConEd
yields
3.5%.
–Darla
Mercado
Fed
funds
won’t
fall
as
far
or
as
soon
as
previously
expected,
BofA
said
Tuesday
Bank
of
America
on
Tuesday
pushed
back
by
six
months
when
it
expects
the
Federal
Rserve
to
start
lowering
interest
rates,
to
December
from
June,
and
revised
higher
where
it
thinks
the
benchmark
fed
funds
rate
will
end
when
the
Fed
is
through
with
the
next
cycle.
“Following
the
recent
stretch
of
inflation
data
that
came
in
firmer
than
we
expected,
we
revised
higher
our
outlook
for
inflation
in
2024
and,
in
turn,
our
outlook
for
Fed
policy,”
wrote
U.S.
economist
Michael
Gapen.
“We
now
expect
rate
cuts
to
begin
in
December,
versus
June
previously,
and
for
the
terminal
rate
in
any
easing
cycle
to
finish
at
3.5%-3.75%,
up
from
3.0%-3.25%
previously.”
With
the
current
fed
funds
rate
at
5.25%-5.50%,
Tuesday’s
move
from
BofA
means
the
bank
is
now
forecasting
no
more
than
seven
quarter-point
reductions
from
the
Fed,
rather
than
a
previous
expectation
of
nine.
“In
short,
we
think
the
signal
from
the
recent
inflation
data
is
that
monetary
policy
will
have
to
be
tighter
on
average
over
the
forecast
horizon
–
not
just
in
2024
–
to
bring
inflation
down
to
2.0%,”
Gapen
wrote.
—
Scott
Schnipper
Stocks
making
the
biggest
moves
after
hours
Starbucks
logo
is
seen
on
a
cup
at
the
cafe
on
April
26,
2024.
Jakub
Porzycki/
|
Nurphoto
|
Getty
Images
Check
out
the
companies
making
headlines
in
extended
trading.
Starbucks —
Shares
slipped
almost
10%
in
extended
trading
after
the
coffee
chain
missed fiscal
second-quarter
estimates on
the
top
and
bottom
line.
Starbucks
earned
68
cents
per
share
on
revenue
of
$8.56
billion,
and
missed
the
forecast
from
analysts
polled
by
LSEG
of
79
cents
per
share
for
earnings
and
$9.13
billion
for
revenue.
Pinterest —
Shares
surged
nearly
19%
following
an
earnings
and
revenue
beat
in
the
first
quarter.
Pinterest
reported
adjusted
earnings
of
20
cents
per
share,
topping
forecasts
for
13
cents
per
share,
according
to
LSEG.
Revenue
growth
also
accelerated
in
the
quarter.
Super
Micro
Computer —
Shares
dropped
nearly
8%
after
Super
Micro
Computer
posted
fiscal
third-quarter
revenue
of
$3.85
billion,
missing
the
$3.95
billion
consensus
estimate,
according
to
LSEG.
Adjusted
per-share
earnings
of
$6.65
topped
the
per-share
estimate
of
$5.78.
The
company
also
issued
strong
fourth-quarter
revenue
guidance.
—
Hakyung
Kim
