Markets grew for the week for the first time in a month. Is it a reason to celebrate or a breather in the pullback?
Monday S&P 500 0.87% | NASDAQ 1.11%
Nine major companies reported earnings, with two missing expectations. Equities jumped to open the week. Outside of earnings data there was not much to support the rally. It was likely a jump on three consecutive weeks of down market, creating better by opportunities.
Tuesday S&P 500 1.20% | NASDAQ 1.59%
35 major companies reported earnings, with five missing expectations. Housing data came in better than expected. The heavy earnings data drove markets higher on Tuesday, pun intended. GM (GM) and Tesla (TSLA) were among reporters that helped propel markets.
Wednesday S&P 500 0.02% | NASDAQ 0.10%
40 major companies reported earnings, with six missing expectations. Core durable goods orders came in lighter than expected. Strong earnings data was counter-balanced by higher rate expectations. This left markets fairly unchanged.
Thursday S&P 500 0.46% | NASDAQ 0.64%
60 major companies reported earnings, with 13 missing expectations. GDP grew at a much slower pace than expected(1.6% vs 2.5%). Unemployment data continued to show strength. GDP and forward guidance from Meta (META) spooked markets early. They managed to climb halfway out of the hole that was dug as the earnings flowed in throughout the day.
Friday S&P 500 1.02% | NASDAQ 2.03%
13 major companies reported earnings, with five missing expectations. Consumer sentiment softened in April. Core Personal Consumption Expenditures (PCE) held steady at 2.8% in March. This is the Federal Reserve Board’s (FRB) preferred gauge of inflation. Between PCE data and earnings from Alphabet (GOOG) and Microsoft (MSFT) markets surged on the day.
Conclusion S&P 500 2.67% | NASDAQ 4.23%
The markets experienced a strong bounce back this last week in comparison to the last three weeks. Do not be fooled. Markets have a way to go to recapture highs as the growth did not even recover from the prior week. This indicates that there is room for markets to continue the run up as earnings season wears on. There are major hurdles this coming week with the FRB meeting, Jobs data, and Apple (AAPL) reports earnings.
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Nothing to see here. Markets jumped out to open the week and then did a whole lot of nothing…
Monday
The Santa Claus rally got under way Monday morning. There were hundreds of Christmas eve flights cancelled due to Omicron. These should have led to dampened investor moods as it could signal the potential for a shutdown. They did not; the S&P climbed more the 1% to open the week.
Tuesday
The rally from Monday did not sell off, but it also did not advance. The trade activity on Tuesday was decidedly sideways as the S&P 500 lost 0.1%. This came as trading volume continued to be light amidst the holidays.
Wednesday
Trade was boring again on Wednesday as markets rose marginally. The S&P 500 rose a whopping 0.11%. Again, trading volumes were light, and the news feed was practically non-existent.
Thursday
Markets soared to open the week and made the remainder of the week boring as markets pretty much remained little changed on Thursday. The S&P 500 fell 0.28%.
Friday
The continued trend of light trading persisted. We expect this to change next week as traders get back to work. Movement was narrow across the day with the S&P 500 little changed on the day.
Conclusion
The opening day of the week did not set the tone for the week, but it did set the desired rise. This was evident by the minimal move throughout the remainder of the week. Granted, news was light. However, movement would have been more pronounced had there been more news to trade on. The S&P 500 ended up gaining 0.68% for the week and 26.89% for the year.
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Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services. Broad diversification across several asset classes with a long-term holding strategy is the best strategy in any market environment.
Any and all third-party posts or responses to this blog do not reflect the views of the firm and have not been reviewed by the firm for completeness or accuracy.