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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Things were bumpy last week. Did that give us any indication of how things will go in the coming weeks?
Monday S&P 500 1.14% | NASDAQ 2.24%
The markets opened the week in the red. It appeared to be more of a hangover from the strong jobs report last Friday. A strong job market allows the Federal Reserve Board (FRB) to focus on inflation. Additionally, Elon Musk backed out of his purchase of Twitter, which shook the communications sector.
Tuesday S&P 500 0.92% | NASDAQ 0.96%
Recessionary fears gripped commodity markets on Tuesday. Oil prices have continued their reach and equities fell in tandem. Equity moves were likely anticipatory of Consumer Price Index (CPI) data due out on Wednesday.
Wednesday S&P 500 0.45% | NASDAQ 0.15%
CPI reported on Wednesday at the highest level since the early 1980’s. Core CPI actually fell to 5.9%. The August reading should have better news as gas prices have softened in recent weeks. Markets opened deep in the red on the inflation news and climbed out throughout the day.
Thursday S&P 500 0.30% | NASDAQ 0.05%
Bank earnings started on Thursday and set the tone as JP Morgan missed estimates. In all, markets were not heavily shaken by the news. This did however keep things in the red for value stocks.
Friday S&P 500 1.91% | NASDAQ 1.75%
Stock Markets rallied to close out the week. Bank stocks outperformed on better-than-expected earnings from Citigroup. Retail sales rose more than expected increasing investor optimism.
Conclusion S&P 500 0.93% | NASDAQ 1.57%
Friday’s bullish move was not enough to erase four straight days of market losses. Growth stocks were favored mid-week, but Value led the week on the back of Monday and Friday. One thing that is promising is that the volatility in markets seems to be calming down. Looking ahead, the VIX shows an expectation of less than a 1% move in equities daily. These swings are moving back to a more sustainable pace for growth to occur.
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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.