 | AUTHOR: Jason Roque, CFP®, APMA®, AWMA® TITLE: Investment Adviser Rep – CCO TAGS: S&P 500, NASDAQ, Tech, Banks, Earnings |
Markets moved higher while hiding some volatility. Will this week show the chaos that last week hid?
Monday S&P 500 0.09% | NASDAQ 0.29%
Markets were little changed to open the week. Eyes will be on Tech all week as they are set to take the earnings torch. Little momentum in that area may have been a wait and see approach to the latter half of the week.
Tuesday S&P 500 1.58% | NASDAQ 1.98%
Equities were scorched on Tuesday. First Republic announced that they saw $100B in deposit withdrawals during the 1st quarter. A statistic that very quickly saw the bank return to shaky ground as investors headed for the exits. UPS, a proxy for economic health announced expectations that revenue for the year would be down.
Wednesday S&P 500 0.38% | NASDAQ 0.47%
Tech moved higher while the S&P 500 lost ground. Fears of an additional bank failure further damaged markets on Wednesday. At the same time, strong earnings from Microsoft lifted tech companies.
Thursday S&P 500 1.96% | NASDAQ 2.43%
Markets celebrated strong earnings from the likes of Meta and Comcast. Beyond earnings, economic data showed that inflation may not be cooling as much as expected. Additionally, initial jobless claims showed a continuation of last week’s elevated level.
Friday S&P 500 0.83% | NASDAQ 0.70%
Investors were buying on Friday to close out the week and month. Equities rose while Amazon fell. Earnings season so far has reported a high percentage of corporations beating estimates. The problem is that with lowered expectations we are still looking at a deceleration of earnings.
Conclusion S&P 500 0.87% | NASDAQ 1.28%
The rise of markets over the last week was marked by some bad news along the way. The failure of another bank, higher inflation, declining earnings, and a shipping slowdown, all of which signal a slowing economy. The fact that markets rose for the week shows how important earnings season is. Past earnings still overshadow the forewarning in the messages. We may see markets react this week as tech moves to the rearview mirror.
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