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 rose again last week. Is this a sustainable move north or should we expect a new low?
Monday
The S&P 500 added .75% to open the week. A light day for economic data allowed headlines to dominate. Vaccine headlines and stimulus news led to gains in value-oriented sectors.
Tuesday
Steam was lost on Tuesday as markets ended the day mixed. Job Openings increased to 6.646M in December. That was not enough to lift markets as a breather in the rally occurred. The positive data does not support the case for excessive stimulus, this could have played into Tuesday’s performance.
Wednesday
The lack of excitement was carried over from Tuesday into Wednesday. Early gains turned into losses and the S&P 500 ended the day mildly lower. Crude oil inventories fell more than expected and Consumer Price Index (CPI) data came in softer than expected. Energy and communication shares out performed on the day.
Thursday
Market activity started strong and faded quickly again. As the day progressed, markets did come back enough for the S&P 500 to post a gain. This came after back-to-back losses. Initial jobless claims reported, and they fell to 793K, one of the lowest levels since the beginning of the pandemic.
Friday
The weekend started off with a bang as markets closed out the week in the green, rising .48%. Some of the moment was on poor sentiment. That, in conjunction with jobless data from Thursday increased the likelihood of a stimulus package being completed.
Conclusion
The markets gained for the week as the S&P 500 rose 1.24%. This was not quite the gain the prior week experienced. A gain following that epic rise is, however, a win for sustainability of growth.
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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.