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 were lower for the holiday shortened week. Did the daily moves tell us anything about the next month?
Monday S&P 500 null% | NASDAQ null%
Happy Memorial Day!
Tuesday S&P 500 0.63% | NASDAQ 0.42%
On the final day of trading for May, investors decided to take markets lower. Oil was a major driver on the day. An EU oil embargo agreement made futures jump. This means more inflation, and more risk of Federal Reserve Board (FRB) rate increases.
Wednesday S&P 500 0.76% | NASDAQ 0.73%
Better economic data led to a selloff in equities. Stronger manufacturing and job opening data caused stress on the market. This is an indication that investors see the FRB being able to be more aggressive. So, once again, more good news has a bad news effect for markets.
Thursday S&P 500 1.84% | NASDAQ 2.69%
OPEC announced they will increase production at a faster pace than expected. They didn’t necessarily increase overall output production, but just when they would reach the levels previously indicated. More oil production should lead to softer prices at the pump. That gave relief to inflation concerns which moved markets broadly higher.
Friday S&P 500 1.64% | NASDAQ 2.47%
Happy Jobs Friday! Good news equals bad news once again as the Jobs report did not disappoint. An internal TESLA email was leaked, Elon Musk indicated a hiring freeze for the company due to economic uncertainty. This backs up a concern voiced by Jamie Dimon earlier in the week regarding a hurricane brewing in the near future.
Conclusion S&P 500 1.20% | NASDAQ 0.98%
After a stellar week, markets fell flat this last week. The ebbs and flows from the market were far calmer than they have been over the last two weeks. This is a big deal as data that prompted moves were no less inflammatory but yielded a calmer response. This should yield growth over the coming weeks should volatility remain at its current level.
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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.