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.
~ Your Future… Our Services… Together! ~
Your interest in our articles helps us reach more people. To show your appreciation for this post, please “like” the article on one of the links below:
FOR MORE INFORMATION:
If you would like to receive this weekly article and other timely information follow us, here.
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.
Market volatility remained high this last week. What asset classes can we look to for growth in the near-term?
Monday S&P 500 1.69% | NASDAQ 2.18%
Markets opened in the red and the sell-off deepened as the day progressed. Yields surged on Monday leading markets lower as anticipation grows over inflationary data due out Tuesday. Higher yields have a larger effect on growth stocks, which was evident by the heavier losses on the NASDAQ.
Tuesday S&P 500 0.34% | NASDAQ 0.30%
Headline Consumer Price Index (CPI) came out at 8.5% (inflation). This higher reading should have led markets lower, but instead the S&P 500 was up as much as 1.5% early. Those numbers faded to the red late in the day as more negativity is anticipated as earnings season gets underway. Core CPI (which strips out fuel and food) grew less than expected and may have played into the early rally.
Wednesday S&P 500 1.12% | NASDAQ 2.03%
Consumer Discretionary, Technology, and Materials all surged on the day. This flies in the face of recessionary fears. This signals a strong consumer in the near term as earnings season gets underway. Interestingly, consumer behavior has directly contradicted consumer sentiment. We are at multiple year lows on sentiment; however, actual consumption remains strong.
Thursday S&P 500 1.21% | NASDAQ 2.14%
Markets opened in the green and quickly retreated into the red. This marks the last day of trading for the week as Good Friday is a market holiday. The move lower was led by growth stocks as the rally in bond yields resumed leadership on the day. The growth heavy NASDAQ nearly doubled the losses of the broader S&P 500. The sell sentiment almost felt as though investors did not want to hold shares into the long weekend.
Friday S&P 500 X.XX% | NASDAQ X.XX%
Markets were closed in observance of Good Friday.
Conclusion S&P 500 2.16% | NASDAQ 2.64%
Interest rates, interest rates, interest rates… That was the story for the majority of the week. We have a pretty clear view of the road ahead:
- GDP is growing at a clip above 5%
- Persistent inflation, though softening core levels
- Better than expected corporate earnings
The picture over the next year provides reasons to be optimistic. Asset classes that provide a hedge against rising rates and companies that carry little leverage appear to be poised to win the day.
~ Your Future… Our Services… Together! ~
Your interest in our articles helps us reach more people. To show your appreciation for this post, please “like” the article on one of the links below:
FOR MORE INFORMATION:
If you would like to receive this weekly article and other timely information follow us, here.
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.