Markets reaccelerated towards the middle of the week. Will growth continue or will there be more looking ahead for the next exit?
Monday
S&P 500 0.24% | NASDAQ 0.26%
Markets slid after a feverish climb so far in April, retreating from record highs set last week. Renewed volatility contributed to the slide following a weekend of increased tensions in the Middle East. Earnings will continue to roll in this week as a temperature check for equity investors.
Tuesday
S&P 500 0.63% | NASDAQ 0.59%
As the expiration of the two-week ceasefire drew near, markets shed recent gains. Retail sales figures came out and were stronger than forecasted. Not surprisingly, after stripping out energy, retail sales were modest in March.
Wednesday
S&P 500 1.05% | NASDAQ 1.64%
Another rally after the extension of the ceasefire with Iran. Tech stocks benefited the most thanks to Alphabet (GOOGL) followed by strong earnings after market close for Tesla (TSLA). IBM (IBM) and AT&T (T) also had mixed earnings in Q1, but tech-heavy indices closed higher.
Thursday
S&P 500 0.41% | NASDAQ 0.89%
Earnings were counterbalanced by caution in ongoing peace talks in the Middle East. Oil rose above $100/barrel (Brent Crude). The 10-year treasury climbed higher as demand for yield remains high with a cloudy outlook for future rate cuts.
Friday
S&P 500 0.80% | NASDAQ 1.63%
Markets surged after Intel (INTC) and American Express (AXP) announced positive quarterly earnings. Another week concluded with more records highs for equities. Oil fell to close out the week as negotiations in Pakistan were closely watched ahead of the weekend.
Conclusion
S&P 500 0.55% | NASDAQ 1.50%
Records were set, again, last week but they weren’t without their ups and downs. Earnings strength has contributed to weekly gains for equities while yields on treasuries went higher as well. Energy and technology were the biggest gainers. With May fast approaching, the question is whether the earnings season surge will sustain itself in the back-half of Q2. Retail sales were modest in March while consumer sentiment rose in April. Leading indicators are not guaranteed predictors of market performance, but May could be a month to watch out for. If markets pull profits after earnings season concludes then the appetite for riskier assets could lower. A robust earnings season across multiple industries, however, may just be the catalyst that spurs additional growth.
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