U.S. Equities Reverse Slump on Strong Earnings Reports; Gold Prices and Treasury Yields Rise as Investors Shift to Safe Haven Assets

On Thursday, April 18, 2024, U.S. equities experienced a midday rally fueled by a wave of stronger-than-expected earnings reports. The S&P 500, Dow, and Nasdaq all saw gains, reversing a recent slump in the market. Shares of D.R. Horton soared after the homebuilder reported impressive second-quarter earnings that surpassed estimates, thanks to increased sales driven by a shortage in the supply of houses.

In another sector, Alaska Air Group’s stock rose after the airline posted better-than-expected results and provided positive guidance amid rising travel demand. This positive news also had a ripple effect on rival airline companies’ shares. Meanwhile, Tesla shares took a hit as Deutsche Bank downgraded the stock and lowered the price target due to concerns about delays in the production of the Model 2 and the company’s emphasis on developing its robotaxi.

On Friday, April 19th, Equifax faced a decline in its stock price after posting guidance for the current quarter that fell short of expectations, attributing the slowdown to decreased mortgage inquiries. Shares of Snap-on also dropped as their revenue missed estimates due to a decrease in demand for power tools. However, gold prices and the yield on the 10-year Treasury note rose as investors moved money out of stocks and into safe haven assets following recent market volatility caused by rising inflation concerns and political uncertainties around the world