US stocks finished higher on Friday, driven by strong earnings reports from Alphabet and Microsoft, sending the tech-heavy Nasdaq 2% higher. The S&P 500 was up 1%, while the Dow Jones gained 153 points as investors brushed off concerns about elevated prices, especially after the latest data showed that the Fed's preferred inflation gauge continued to indicate persistent price pressures. Microsoft jumped 1.8% after surpassing forecasts for both earnings and revenue. Alphabet surged 10.2%, hitting all-time high of $171.95, after its upbeat results, and the company's announcement of its first dividend added to the positive sentiment. Conversely, Intel plunged 9.2% after providing a disappointing revenue outlook. ExxonMobil lost 2.8% after missing earnings expectations, while Chevron rose slightly as its profit came in below estimates. On the week, the S&P 500 and the Nasdaq gained 2.2% and 3.5%, respectively, their best weeks since November, while the Dow Jones rose by 0.5%.
Frankfurt's DAX 40 index surged by 1.4% to close at 18,116 points on Friday. Investors absorbed data from an ECB survey indicating that inflation expectations in the bloc declined to their lowest level since December 2021, adding to expectations that the region's policymakers might lower borrowing costs in June. On the other hand, solid PCE price inflation data from the US suggested that the Federal Reserve would not deliver a first rate cut before September. Among individual stocks, Thyssenkrupp soared by 7% after the German firm announced its intention to sell a 20% stake in its steel business to an energy holding controlled by Czech billionaire Daniel Kretinsky.
The FTSE 100 rose to a new record of 8,145 on Friday. The mid-cap firm soared by over 16% on $5.32 billion buyout deal by Thoma Bravo. Meanwhile, investors digested economic data from Europe and the US, with ECB survey revealing that inflation expectations fell to an over-two-year low and US PCE report pointing to elevated price pressures. The top gainers of the day were NatWest (5.8%), Ashtead (5.3%), Anglo American (4.1%), Rolls Royce (3.5%), and Lloyds Banking (2.2%). NatWest increased after reporting a 27% fall in profit for the Q1 of 2024, less than anticipated. Meanwhile, Anglo American erased morning declines when the company announced the rejection of an opportunistic BHP proposal. In the red Convatec fell by 6.6% after Peel Hunt downgraded its recommendation on company shares to 'reduce' from 'add' and cut the target price. Weekly, the index added 3.2%, its best performance in 7 months.
The CAC 40 rose by 0.89% to close at 8,088 on Friday. Total Energies jumped by 2.23% after reporting a smaller-than-expected drop in first quarter profits, as resilient oil demand offset the impact of lower natural gas prices in Europe. Also, Saint Gobain surged 6.7% after the French building materials giant’s Q1 revenue surpassed expectations. Additionally, shares of Kering rose 3.07% following reports that Kering shareholders approved three new board members in light of recent departures, including long-time executive Jean-François Palus. Conversely, Airbus dropped nearly 0.71% following the company’s assessment of the operating environment, which it described as showing “no signs of improvement”. On the week, the CAC 40 saw gains of 0.85%.
The FTSE MIB rose 0.91% to close at the 34,250 mark on Friday. The financial sector, particularly major players like Unicredit and Intesa Sanpaolo, saw gains of 1.7% and 1.3% respectively. Conversely, Tenaris stood as one of the worst-performing stocks, plunging nearly 8%, despite reporting better-than-expected Q1 financial results in terms of turnover and profitability. For the week, the FTSE recorded a 1% increase.
The IBEX 35 rose to 11,154 on Friday, outperforming its European peers and closing at its highest since August 2015 thanks to the push from the financial and real estate sectors. Banco Sabadell (3.3%), BBVA (4.6%), Merlin Properties (2%), and Inmobiliaria (1.9%) headed the increases. Sabadell benefitted from an improvement in the target price from Barclays and JP Morgan after yesterday's robust figures. Also, Grifols added 3.7% and Acciona jumped by 4.1%. The board of directors of Acciona Energía will propose to its ordinary general meeting of shareholders in June, the distribution of more than 158 million euros in dividends for 2023. On the negative side, Repsol declined by 1.9%. Weekly, the index gained 4%, its best performance in six months.
