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 have now gained for two weeks after a rough start to the year. Should the growth continue?
Monday S&P 500 0.04% | NASDAQ 0.40%
Markets started on shaky footing and found its way lower for the day. The markets were reacting to comments from Federal Reserve Board (FRB) Chair Powell. He stated inflation is running much higher than they would like, and they will take aggressive actions to combat it. He referenced 0.5% hikes as an option. Additionally, oil prices spiked as a peaceful resolution in Ukraine seemed to become less likely over the weekend. The net impact is additional concern for inflation for the FRB. The S&P 500 ended up clawing back to even to close the session.
Tuesday S&P 500 1.13% | NASDAQ 1.95%
Markets came out punching on Tuesday morning. Word that Ukraine was making ground reclaiming neighborhoods helped sentiment. Oil prices softened and the 10-year treasury yield jumped. Over the last 3 months the yield has risen .88% reflecting the stress created by the FRB policy around rates.
Wednesday S&P 500 1.23% | NASDAQ 1.32%
Markets opened in the red and stayed there all day. Sentiment was sour at the open as new home sales continued to slow. More impactful, however, was a larger than expected draw down of oil supplies for the US. Elevated concerns of an oil shortage ended up pushing oil prices above $115.
Thursday S&P 500 1.43% | NASDAQ 1.93%
Services and manufacturing both showed signs of strengthening. Additionally, jobless claims came in at a historically low level. All of these would point to a more hawkish FRB, but markets climbed. In part, oil retreated as WTI Crude came in around $111. While equity markets rallied on oil’s slide, bond markets tipped lower as rate increase odds rose.
Friday S&P 500 0.51% | NASDAQ 0.16%
Both consumer sentiment and pending home sales softened. Setting markets in the wrong direction Friday morning. The S&P managed to claw its way to positive territory. This was a statement of investor sentiment as opposed to data. Treasuries continued the sell off that has been underway for a few weeks now.
Conclusion S&P 500 1.79% | NASDAQ 1.98%
The markets climbed for the week as investor sentiment seems to be improving. Days starting in the red and investors buying into the close is pushing markets to the green. This sentiment is a clear message from investors that status quo from the global environment will still spell growth for the US economy.
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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.