SUPERNEWS

Macro

S&P 500 Up; ON Semi Shines with $1.86B, Deciphera Soars 73%

S&P 500 rises on strong earnings; first-quarter EPS growth hits 4.7%, with positive outlooks boosting market sentiment.

By Bill Bullington

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4/29, 14:59 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
ON Semiconductor Corporation
Koninklijke Philips N.V. NY Registry Shares
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Key Takeaway

  • ON Semiconductor beats Q1 earnings with $1.86 billion revenue and adjusted EPS of $1.08, surpassing consensus estimates.
  • S&P 500, Dow, and NASDAQ all posted gains, with consumer discretionary shares leading at a 1.9% increase.
  • Deciphera Pharmaceuticals surged 73% following acquisition news by ONO Pharmaceutical; Philips up 28% after settling litigation and posting strong earnings.

Market Trends: Earnings Propel S&P 500

The S&P 500 is experiencing a rebound, supported by a robust earnings outlook. As of the latest reports, first-quarter EPS growth is tracking at 4.7% year-over-year, an improvement from the 3.9% forecasted before the reporting season began. This uptick is significant, considering the health care sector's charges; without them, the growth appears even more promising. Notably, outlooks for the second quarter are being upgraded to 9.7% year-over-year growth, up from 9.5% at the season's start, indicating a positive shift in projections.

Sector Performance: Winners and Losers

The sectors showing the most improvement in projections for the first quarter include communication services, industrials, financials, consumer staples, and consumer discretionary. This is a key development, especially for communication services, where Alphabet holds a significant weight. Looking ahead to the second quarter, energy, utilities, materials, financials, and communication services are the sectors with the most substantial increases in outlook. This trend suggests a potential shift in focus towards value and ex-tech shares if the improved growth forecasts extend beyond the technology sector.

Individual Stock Highlights

Several stocks have made notable moves in the market. Deciphera Pharmaceuticals surged 73% after announcing its acquisition by ONO Pharmaceutical. Collective Audience saw an 84% increase following a strategic partnership announcement with Insticator. Koninklijke Philips also gained 28% after settling litigation related to Respironics personal injury and medical monitoring, coupled with better-than-expected first-quarter earnings and reaffirmed guidance. On the downside, Clever Leaves Holdings plummeted 61% after announcing its voluntary delisting from Nasdaq, and Annovis Bio fell 58% due to disappointing data from its Alzheimer study.