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.
Another down week led by the NASDAQ. Are there signs of hope in the long term forecast though?
Monday S&P 500 0.57% | NASDAQ 1.63%
Equity markets were in no mood to be boring on Monday. The markets opened choppy, oscillating between green and red. At one point, the 10-year treasury got above 3%, sending equity markets decidedly lower. At another point, the S&P 500 was 1.67% lower on the day. Late in the day, with one hour of trading left, markets rallied back to end in the green.
Tuesday S&P 500 0.48% | NASDAQ 0.22%
The growth story stayed relatively contained on Tuesday as the Federal Reserve Board (FRB) press conference is on Wednesday. Every time the markets tried to break out, they clawed back down. The 10-year treasury rate floated lower early and closed nearly unchanged.
Wednesday S&P 500 2.99% | NASDAQ 3.19%
The FRB delivered what the markets were expecting. They lifted the Fed Funds Rate by 0.50% and committed to rolling off their balance sheet starting June 1st. The commitment will eventually get to $95B, however that won’t be until September. The S&P 500 traded sideways until the data from the FRB was available, after which markets soared into the close. The 10-year treasury was little changed, indicating that the FRB hike was baked in already.
Thursday S&P 500 3.56% | NASDAQ 4.99%
The entire week of positivity was reversed in one broad selloff. The S&P 500 is currently off 13.54% and the Tech heavy NASDAQ is currently off 22.20%. The broad market move says that while the FRB was less fierce than expected, they are being aggressive with policy. That aspect does not change the expected decrease in revenue for US companies.
Friday S&P 500 0.62% | NASDAQ 1.45%
Happy Jobs Day! Jobs data held strong as the unemployment rate remained at 3.6% and the US added over 400K jobs in April. The participation rate is holding at 62.2%. Additionally, wage growth increased 5.5% annually. This rate keeps pace with Core PCE (a key indication of inflation). This could reflect a stickier inflation environment. Markets reacted negatively to the good news. It signals more room for the FRB to raise rates without having to worry about the job market.
Conclusion S&P 500 0.21% | NASDAQ 1.54%
The FRB is working to provide enough restriction to quell inflation, but not enough to cause a recession. The last time that effectively occurred was in 1994. The FRB aggressively rose rates to keep inflation at bay. If the FRB could successfully achieve a ’soft landing’, the follow-on story to the early ‘90’s was great. That five-year period of growth in the late ‘90’s has been unrivaled. It is still to be seen if the FRB can achieve that soft landing. If they do, they may set the table for a growth heavy period for the next few years.
~ 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.