NAGA Weekly Recap May 27 - 2024 – May 31 - 2024

This week has seen significant events, from the Dow Jones dropping 1000 points to Salesforce missing earnings expectations. As a result, markets are highly volatile, presenting new opportunities for trading strategies.

Read our full weekly review to dive into the current economic landscape and stay informed!

The Dow fell 1,000 points in the last three days

US markets have had a rough week. The Dow has fallen by around 1,000 points over the last three days alone — and the negative momentum didn’t let up Thursday.

The Dow closed 331 points lower, or 0.9%. The S&P 500 was down 0.6% and the Nasdaq Composite dropped 1.1% as lackluster earnings results from Salesforce worried investors.

Shares of the customer relationship management company fell 19.7% after it reported a revenue miss and lowered expectations for the year ahead, notching its worst day in two decades.

That comes after a bad Wednesday for the broader market, with all 11 sectors of the S&P 500 closing lower.

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Salesforce shares tumble 20% in the worst day since 2004

Salesforce shares took a historic 20% dive, marking the stock’s worst day in nearly two decades.

The dramatic drop follows the cloud software giant’s announcement of fiscal first-quarter results that fell short of Wall Street’s revenue expectations for the first time since 2006.

Salesforce reported a revenue increase of 11% to $9.13 billion, narrowly missing the $9.17 billion forecast by analysts. Additionally, the company’s guidance for the second quarter also came in below expectations, with projected earnings per share of $2.34 to $2.36 on $9.2 billion to $9.25 billion in revenue, compared to analysts' expectations of $2.40 per share on $9.37 billion in revenue.

Consequently, the analysts have adjusted their price target for Salesforce’s stock from $323 to $260.

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Oil falls as US reports surprise fuel build, weak demand

Oil prices fell for a second straight session after the U.S. government reported weak fuel demand and a surprise jump in gasoline and distillate fuel stockpiles.

Brent Crude dropped $1.74, or 2.1%, to $81.86 a barrel. U.S. West Texas Intermediate crude fell $1.32, or 1.7%, to $77.91 a barrel.

Despite a bigger-than-expected drop in U.S. crude stocks due to refiners working at their highest rates in over nine months, gasoline and distillate fuel inventories unexpectedly rose as demand weakened.

"Weakness in gasoline markets has continued to drag down the rest of the oil complex," said Alex Hodes, oil analyst at StoneX.

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Markets cautious before key data

Safe-haven assets like the US Dollar and Japanese Yen are holding strong as financial markets turn risk-averse ahead of important data releases. Early Thursday, the US Dollar consolidates its gains slightly above 105.00, while US stock index futures trade deep in negative territory, losing between 0.6% and 0.9%.

In Europe, May's business and consumer sentiment data and April's Unemployment Rate are in focus. The EUR/USD came under heavy bearish pressure on Wednesday, recording its largest one-day decline since late April, dropping 0.5%. Early Thursday, the pair struggles to rebound, trading slightly below 1.0800.

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This concludes our weekly recap. Have a great weekend and see you next week! 👋