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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Markets rose for the week. Is the strength sustainable, or in bear market form, will the numbers fade?
Monday S&P 500 0.10% | NASDAQ 0.10%
Tech stocks weighed on the Monday trade as Chip maker Nvidia gave negative forward guidance. Additionally, trading signaled a more aggressive Federal Reserve Bank (FRB) off the back of the strong July Jobs report.
Tuesday S&P 500 0.42% | NASDAQ 1.19%
Markets opened down on the day and stayed there. They never deviating too far from where they started. NASDAQ led the losses lower. After three weeks of gains, markets were taking a breather leading up to Consumer Price Index (CPI) data released Wednesday.
Wednesday S&P 500 2.13% | NASDAQ 2.89%
CPI data surprised to the lower bound. Expectations were for inflation to fall from 9.1% to 8.7%. It actually came in at 8.5%. Core CPI (which strips out food & fuel) held steady at 5.9% when it was expected to rise to 6.1%. The weaker than expected CPI data yielded strong performance from the markets. The more inflation concerns subdue, the less interest rate hikes from the FRB are expected.
Thursday S&P 500 0.01% | NASDAQ 0.58%
Producer Price index (PPI) surprisingly fell to 9.8% in July from 11.3%. This data is usually higher than CPI data so while elevated, the reduction was welcome. Markets opened in the green but faded to flat by the close.
Friday S&P 500 1.73% | NASDAQ 2.09%
Consumer Sentiment projected to surprise to the upside this month. The estimate has risen to 55.1 where 48.4 was expected. Both readings are low, but a 5-point increase is encouraging. Markets rose dramatically to close the week.
Conclusion S&P 500 3.26% | NASDAQ 3.07%
The rallies on Wednesday and Friday brought us to 4 straight weeks of gains for the market. It is to be remembered that this is still a bear market. While the gains have been nice, they could be notoriously poached quickly. Conversely the wide number of positions in the green does signal good underlying strength to the current rally.
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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.