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 moved north last week. Is the S&P 500 finding its legs or is there cause for concern?
Monday
Markets were mostly flat to open the week. A great signal after ending last week in record territory for the S&P 500. Holding on to those gains may signal more ahead.
Tuesday
The S&P 500 was flat on the day as treasuries got a bid. This is a move that seems to signal investors are beginning to accept Federal Reserve direction. A bid to treasuries is a concession that inflation is likely to not carry as much concern as originally expected.
Wednesday
In a continued bid for safe haven securities, equity markets ended the day slightly lower. The 10-year treasury was getting a bid as it ended the day at 1.47%. This was the lowest level since the beginning of March.
Thursday
Markets climbed on Thursday. CPI data released showed robust growth of inflation, which typically would elicit a falling market. This indicates that while the number was high (Core CPI at 3.8%) it is not expected that inflation will persist.
Friday
As of late, the end of the week has been generally telling for investor sentiment. The data has been light, leaving investor response to really signal what risks the weekend may hold. This Friday we got favorable consumer sentiment projections and a rise in markets. This indicates that the weekends news cycle is not of major concern.
Conclusion
The S&P 500 rose by 0.41% for the week. Movement was fairly muted, but investor sentiment was strong. The volatility could tick up from here as volumes will moderate over the summer months. Lighter volume typically brings choppier waters.
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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.