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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The rally is over, or is it? Markets fell last week, but should we expect it to continue?
Monday S&P 500 0.40% | NASDAQ 0.62%
China lowered keys rates over night which yielded a bullish market at open. Heavy stimulus from China could signal a resurgence of activity later this year. This week will be heavy on consumer retail earnings.
Tuesday S&P 500 0.18% | NASDAQ 0.20%
Markets started the day in the red and floated into the green as the day progressed. Earnings out of Walmart beat expectations. Consumers are shifting their spend but still spending. They reported that the recent relief in fuel expenses has translated to consumer spending.
Wednesday S&P 500 0.72% | NASDAQ 1.25%
Energy prices increased on the day, raising concerns about future inflation. US exports of fuel increased last month as the US begins to replace Russian fuel supplies to Europe. Target failed to meet earnings expectations as inventories dragged on their performance. Federal Reserve Board (FRB) minutes from their last meeting were released. They showed an indication of slowing rate hikes ahead. Markets rebounded briefly on the news. Markets remained in the red throughout the day and ended there.
Thursday S&P 500 0.23% | NASDAQ 0.21%
Markets moved sideways most of the day trying to find a reason to rise. They did so in the final hour, but not by much. Short term interest rates floated down on the day and interest rate expectations softened. Oil prices firmed on the day, which will provide a contradictory opinion in coming days.
Friday S&P 500 1.29% | NASDAQ 2.01%
The equity markets retreated on Friday as anticipation builds towards the FRB’s meeting in Jackson Hole next week. As a result, the markets saw equities selloff, yields climb, a stronger dollar, and higher fuel-based commodities.
Conclusion S&P 500 1.21% | NASDAQ 2.62%
Welp, it was fun while it lasted, but the four-week rally seems to have lost steam. Markets closed the week in negative territory for the first time in five weeks. Eyes seem to be turning to Jackson Hole. The anticipation of a hawkish FRB will likely be fulfilled. As the economy continues to weaken with the current FRB activity, their resolve to stay hawkish will be tested. In the short run this could mean negativity, but in the intermediate term it should mean opportunity.
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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.