Tech Dominance and Retail Struggles: S&P 500 Hits New Highs, Earnings Reports Shape Market Landscape

Retail stocks in the S&P 500, excluding the technology sector, are currently experiencing their lowest levels in comparison to the technology stocks within the index.

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The S&P 500 concluded the week by reaching a new record high above 5,000. Notable companies such as Alibaba, PayPal, and Disney reported earnings during the week.

The technology sector emerged as the best-performing major sector in the S&P 500 on Friday.

Pinterest shares collapsed after reporting $981 million in revenue, missing the expected $991 million. Year-over-year, revenue increased by 12%, reaching $201 million in net income.

Disney reported slightly below projected quarterly revenue at $23.5 billion but authorized a $3 billion share repurchase program and declared a 45 cents per share dividend. CEO Bob Iger mentioned the company entering a new era of growth.

PayPal exceeded market forecasts with an 8.7% rise in revenue to $8.03 billion and reported quarterly adjusted earnings of $1.48 per share, with net income totaling $1.4 billion. CEO Alex Chriss emphasized ongoing initiatives to drive change.

Alibaba revealed Q3 adjusted net income of RMB 47,951 million and Q3 revenue of RMB 260,348 million, announcing a $25 billion increase to its share repurchase program. The company prioritized reigniting growth in its core businesses, e-commerce, and cloud computing.

Uber announced Q4 net income of $1.4 billion, Q4 gross bookings of $37.6 billion, and net revenue of $9.94 billion. CFO Prashanth Mahendra-Rajah highlighted Uber’s platform advantages and disciplined investments leading to record engagement and accelerating gross bookings in Q4.

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