U.S Stock Market Weekly Summary – From May 20 to 24, 2024

Written by Dreamer

• S&P 500: Started the week at 5,305.35 and closed at 5,304.72, down by 0.63 points or –0.01%.
• Dow 30: Started the week at 39,989.76 and closed at 39,069.59, down by 920.17 points or –2.30%.
• Nasdaq: Started the week at 16,702.02 and closed at 16,920.80, up by 218.78 points or 1.31%.
• Russell 2000: Started the week at 2,096.49 and closed at 2,069.67, down by 26.82 points or –1.28%.

These mixed performances imply varied investor sentiment across different sectors. The stability of the S&P 500 suggests a period of consolidation, while the Dow’s decline reflects caution about economic growth. The Nasdaq’s rise indicates optimism in technology and growth stocks, and the Russell 2000’s decline points to challenges for smaller companies. Overall, this suggests cautious optimism in tech sectors and concerns about traditional industries and small-cap companies, highlighting the importance of diversification and potential sector rotation in the market.

Contents:

• Stock Trading Volume
• Average Number of Companies By Sector in a Week
• Average Market Cap By Sector in a Week
• Average Trading Volume By Sector in a Week
• Top 10 Growth Stocks
• Stock in Focus

Insights:

Stock Trading Volume:

Daily trading volume fluctuated significantly over the week. Monday, 20 May 2024, saw the highest volume at 12.16 billion shares. This dropped to 10.13 billion shares on Tuesday. Wednesday and Thursday experienced a recovery, with volumes at 11.30 billion and 11.50 billion shares, respectively. However, Friday’s volume fell to 9.08 billion shares. These changes suggest varying investor activity influenced by market news and economic data.

Average Number of Companies By Sector in a Week:

• Leader: Finance leads with 1,678 companies.
• Follow Closely: Health Care, Consumer Discretionary, and Technology follow closely with 1,221, 1,177, and 779 companies, respectively.
• Last in the List: Miscellaneous has the fewest with 63 companies.

The Finance, Health Care, and Consumer Discretionary sectors are the most populated, suggesting high level of importance in the market. Technology also shows strong representation, aligning with current trends in innovation.

Average Market Cap By Sector in a Week:

• Leader: Technology is the leading sector, accounting for 32.7% of the total market cap.
• Follow Closely: Consumer Discretionary comes next with 18.1%, followed by Finance at 11.6% and Heath Care at 10.7%.
• Last in the List: Basic Materials (0.9%) and Miscellaneous (0.1%) have the second smallest and smallest market caps, respectively.

The Technology sector holds a commanding lead in market capitalization, indicating its critical role in the market. Consumer Discretionary, Finance and Health Care also have substantial market caps, reflecting their significant impact. In contrast, sectors like Basic Materials and Miscellaneous have minimal market presence.

Average Trading Volume By Sector in a Week:

• Leader: Consumer Discretionary sector leads with the highest average trading volume of 2,438 million shares.
• Follow Closely: Technology (1,959 million), Industrials (1,713 million), and Health Care (1,658 million) also have high trading volumes.
• Last in the List: Consumer Staples (180 million), Telecommunications (177 million), and Miscellaneous (164 million) have lower trading volumes.

The Consumer Discretionary sector dominates in trading volume, highlighting its attractiveness to investors. Technology, Industrials, and Health Care also see substantial trading activity. In contrast, sectors like Consumer Staples, Telecommunications, and Miscellaneous have lower trading volumes, indicating less market interest.

Top 10 Growth Stocks:

These are the top 10 growth stocks that have shown significant growth in recent months. Out of these 10 stocks, AudioEye, Inc. (AEYE) is selected for detailed analysis as shown below.

Stock in Focus:

Overview:

AudioEye, Inc. (AEYE) provides patented internet content publication, distribution software, and related services to make digital content accessible to people regardless of their device, location, or disabilities. Their technology enables real-time distribution to any internet-connected device, ensuring inclusivity and accessibility.

Institutional Investment:

AEYE is invested in by well-known institutions, with 10.19% of its shares held by institutional investors. The company has a strong insider ownership of 49.50%, indicating confidence and commitment from its management.

Financial:

• Market Cap: $279.10 million
• Profit Margin: -14.83%
• Recent Earnings (Most Recent 4 Quarters)
  • Q2 2023: EPS of -$0.17 (missed estimate by $0.01), negative earnings surprise of -6.30%.
  • Q3 2023: EPS of -$0.11 (beat estimate by $0.04), positive earnings surprise of 26.70%.
  • Q4 2023: EPS of -$0.04 (beat estimate by $0.07), significant positive earnings surprise of 63.60%.
  • Q1 2024: EPS of -$0.07 (beat estimate by $0.01), earnings surprise of 12.50%.

The chart:

In the last six months, there is a significant upward trend, with the stock price increasing by 472.32%. The closing price on 24 May 2024 was $23.98, up by 15.12% from the previous close.

Conclusion:

AEYE is focused on making digital content accessible, which aligns with global inclusivity trends. The company has strong institutional backing and significant insider ownership, reflecting confidence in its growth potential. Despite current losses, AudioEye has shown improvements in its earnings, with positive surprises in three out of the last four quarters. The stock has seen a remarkable increase in value over the past six months, indicating strong investor interest and optimism about its future prospects.

See more:

• Yahoo Finance: AudioEye, Inc. (AEYE)