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Sector Update: Consumer Stocks Mixed Friday Afternoon

-- Consumer stocks were mixed Friday afternoon, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) down 0.3% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) rising 0.8%.

In sector news, US consumer sentiment improved from an initial April estimate, but remained at a record low as near-term inflation expectations logged the biggest monthly increase in a year, final University of Michigan survey results showed Friday. The main sentiment index fell 6.6% to 49.8 from last month. The consensus in a Bloomberg poll expected the April reading to be revised to 48.5 from the preliminary estimate of 47.6.

In corporate news, Procter & Gamble (PG) reported stronger-than-expected fiscal Q3 results on Friday, while the consumer goods giant reiterated its full-year outlook. Shares rose 3.2%.

Charter Communications (CHTR) reported Q1 earnings below market estimates as revenue declined annually, driven by weakness in the residential video and Internet segments. Shares slumped 22%.

Stellantis (STLA) plans to direct the bulk of its future investment toward Jeep, Ram, Peugeot, and Fiat under Chief Executive Antonio Filosa's turnaround strategy, Reuters reported. The carmaker is set to unveil the long-term plan in May, focusing on strengthening its most profitable global brands while streamlining its sprawling 14-brand portfolio, the industry's largest, the report said. Stellantis shares were down 3%.

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Equities

S&P 500 Posts Fourth Consecutive Weekly Gain, Hits New Highs

The Standard & Poor's 500 index rose 0.55% this week to another round of fresh highs, led by the energy and technology sectors as oil prices climbed and Intel's (INTC) earnings topped views.The S&P 500 ended Friday's session at 7,165.08, its highest closing level yet. The market benchmark also reached a fresh intraday high on Friday at 7,168.59.This marks the S&P 500's fourth weekly gain in a row. It's up 9.8% for April and 4.7% for the year.US retail sales last month logged the largest rise since March 2025, data released earlier this week showed. The increase, however, came amid a surge in spending at gasoline station as the Middle East conflict led to higher prices.US consumer sentiment improved from an initial April estimate, and consumer sentiment remained at a record low as near-term inflation expectations logged the biggest monthly increase in a year, according to final University of Michigan survey results.The energy sector led the week's advance, rising 3.2%, followed by a 3.1% increase in technology and a 1.2% rise in consumer staples. Utilities and materials also edged higher.The energy sector's increase came as crude oil futures rose amid continued uncertainty in the Middle East.Baker Hughes (BKR) had the largest percentage gain in the energy sector, climbing 15% as the company reported Q1 adjusted earnings and revenue above analysts' mean estimates.The technology sector was boosted by stronger-than expected first-quarter results from Intel amid artificial intelligence-driven demand. The chip maker also issued an upbeat Q2 outlook. Its shares jumped 21% on the week.On the downside, health care fell 3.1%, followed by a 1.9% drop in financials and a 1.5% slip in real estate. Communication services, industrials and consumer discretionary also edged lower.HCA Healthcare (HCA) led the decliners in health care, falling 11%. The hospital operator's first-quarter results exceeded market expectations but the company also said it didn't experience its typical increase in seasonal volume during the quarter, mainly due to a drop in admissions related to respiratory issues.Thermo Fisher Scientific (TMO) also lost 11%. The medical device manufacturer raised its full-year outlook as first-quarter results came in stronger than expected, but investors were disappointed by its organic growth, which fell short of analysts' estimates.Next week's earnings calendar features a number of large companies including Google parent Alphabet (GOOG), Microsoft (MSFT), Amazon.com (AMZN), Facebook parent Meta Platforms (META), Apple (AAPL), Eli Lilly (LLY), Mastercard (MA), Caterpillar (CAT), Merck (MRK), Berkshire Hathaway (BRK.A, BRK.B), Verizon Communications (VZ), Visa (V) and Coca-Cola (KO).Economic data will include Q1 gross domestic product, March personal consumption expenditures and April consumer confidence, among other reports.The Federal Reserve's Federal Open Market Committee will hold a two-day rate policy meeting, concluding on Wednesday.

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Commodities

Europe Electricity Prices Slide to Multi-Year Lows on Solar Spike, Bloomberg Analysis Says

French power prices dropped to minus 188.98 euros ($221.5) per megawatt-hour, the lowest since 2013, as solar output surged across Europe, according to a Bloomberg analysis on Friday.Solar output rose sharply this week as clear skies and cooler temperatures improved panel efficiency across western Europe, the analysis said.Production is expected to remain above seasonal norms through the weekend, supported by favorable weather conditions, the analysis added, citing MetDesk.France has rapidly expanded solar capacity, more than doubling installations over the past four years, according to BloombergNEF data, cited in the analysis.Midday supply has increasingly outpaced demand as solar generation peaks, pushing power prices into negative territory across several European markets, the analysis said.Grid constraints and limited storage capacity have restricted the system's ability to absorb excess electricity, forcing operators to scale back production to maintain balance, the analysis added.Germany may see solar output reach a record 54 gigawatts on Saturday, with additional support from strong wind generation, according to the analysis.Power prices in Germany's day-ahead market dropped to minus 190.87 euro per megawatt-hour, the lowest level in more than a year, the report said.The UK has also recorded strong solar output, with generation expected to reach around 13 GW over the weekend after setting a record earlier this week, the report added.

Research

Research Alert: CFRA Raises Rating On Shares Of Digital Realty Trust, Inc. To Buy From Hold

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We increase our 12-month target by $40 to $230, on a forward P/FFO of 28.0x, a premium to the three-year forward average of 21.9x. We lift our 2026 FFO estimate by $0.24 to $8.20 and increase 2027 by $0.17 to $9.06. We believe DLR's premium is justified given the accelerating growth of AI spend and management's history of executing on data center developments at yields over 10% historically combined with a record backlog. DLR continues to benefit from the accelerating demand for data centers related to AI growth with its strongest 0-1MW quarter ever totaling $98M in new signings. Total backlog of signed, but not commenced leases has reached a new record of $1.8B providing visibility into 2027-2028 growth. The development pipeline was up 50% Q/Q to 1.2GW under construction with 61% pre-leased at an attractive 11.4% yield. We believe DLR is likely to continue benefiting from interconnection and low-latency data center demands with favorable re-leasing spreads for renewals of its core operating portfolio.

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