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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After three weeks of losses, markets were back in the green last week. Should it continue?
Monday S&P 500 -% | NASDAQ -%
Happy Labor Day!
Tuesday S&P 500 0.41% | NASDAQ 0.74%
ISM Services Data came in at 56.9, much higher than expected. Meanwhile S&P Service PMI came in at 43.7! These two surveys have deviated from each other as of late. The ISM survey is seen as broader as it covers more industries and therefore garners more market attention. The strength of the economy gives more freedom to the Federal Reserve Board (FRB) to be aggressive against inflation.
Wednesday S&P 500 1.83% | NASDAQ 2.14%
A fall in oil prices led to a Tech led rally that raised all markets. Lower oil prices signal lower future inflation pressure, which means less risk of higher rates from the FRB. While rates are rising in the short-term, markets are starting to look at the rate hike path for 2023.
Thursday S&P 500 0.66% | NASDAQ 0.60%
Two green days in a row… This has not happened for the last two weeks. The largest gains came in Financials, Healthcare, and Materials. Healthcare is a decidedly defensive play. Financials would perform well on the prospect of further rate hikes.
Friday S&P 500 1.53% | NASDAQ 2.11%
Friday saw a rise in oil prices, threats from Russia regarding fuel, and FRB comments showing commitment to rate hikes… Markets rose… At this point this may be a rally off the recent lows and less so about the daily economic data.
Conclusion S&P 500 3.65% | NASDAQ 4.14%
After three weeks of market losses, both the S&P 500 and the NASDAQ Composite gained for the holiday shortened week. Interestingly, volume was light last week as though it was a summer month. The FRB meets next week, and a 0.75% rate hike is expected. That could likely dampen some of the growth prospects in the short run.
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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.