The early part of the week saw stocks under pressure from inflation concerns. A rally on Thursday and Friday triggered by the easing of mask wearing guidelines by the Center for Disease Control recouped some of the losses. The Dow Jones Industrial Average closed the week –1.1%, the S&P 500 Index was –1.3%, and …
Bad news in the monthly employment report was good news for stocks on Friday. A much weaker employment report than anticipated was seen as a signal the economy is not as frothy as expected, causing equities to rally. The Dow Jones Industrial Average closed the week +2.7%, the S&P 500 Index was +1.3%, and …
The quarterly earnings reporting season is past the half-way point. Of the 303 companies in the S&P 500 Index that have reported earnings to date for Q1, 87.1% have reported earnings above analyst estimates. This compares to a long-term average of 65.3% and prior four quarter average of 75.5%. The Dow Jones Industrial Average …
Despite generally positive corporate earnings reports, the equity markets were flattish last week on concerns surrounding proposals from the White House for higher capital gains taxes. Of the 123 companies in the S&P 500 Index that have reported earnings to date for Q1, 85.4% have reported earnings above analyst estimates. This compares to a …
The equity markets responded positively to the first week of first quarter earnings. Of the 44 companies in the S&P 500 Index that have reported earnings to date for the first quarter, 84.1% have reported earnings above analyst estimates. The Dow Jones Industrial Average closed the week +1.2%, the S&P 500 Index was +1.4% …
Over 20% of the U.S. population has been fully vaccinated for COVID-19. The economy has been looking up and the Federal Reserve is being patient with interest rates. Fed Chair Jerome Powell also expressed a positive view of the economy in an interview that was aired on Sunday, but also said it is highly …
As COVID restrictions continue to ease in many areas, the jobs are coming back. Last week’s monthly employment report showed the U.S. added 916,000 jobs in March. Many new jobs came in areas that suffered over the past year such as leisure and hospitality, as well as education. The stock market was closed for …
We head into the end of the first quarter with all three major U.S. equity indices positive for the year. We are fortunate to be in a better economic and social environment versus this time last year when the initial impact of the COVID-19 pandemic was driving equity markets lower and forcing people into …
The Federal Reserve acknowledged some improvement in the economy in its Wednesday Federal Open Market Committee (FOMC) meeting statement, while stating that inflation remains below target. The economic improvement versus inflation battle continues in the fixed income and equity markets. This past week “Team Inflation” won as the equity markets declined and bond yields …
Springing Forward! The equity markets moved to the upside last week. Investors seem to be a little more comfortable with bond yields. Two inflation measures for February, the CPI and PPI, showed an increase in inflation mainly tied to increasing energy prices. The February CPI showed 12-month rate of inflation for consumer goods and …
Continued upward movement in interest rates pressured stocks during the week, but a strong Employment Report ended the week on a stronger note. The Dow Jones Industrial Average was +1.8%, the S&P 500 Index was +0.8%, and the NASDAQ 100 Index was –1.8%. The U.S. economy added 379,000 jobs in February versus an expectation …
A sharply steepening yield curve pressured stocks last week. The Dow Jones Industrial Average was –1.7%, the S&P 500 Index was –2.4%, and the NASDAQ 100 Index was –4.9%. We are nearing the end of the fourth quarter earnings season with 479 in the S&P 500 Index having reported earnings. Eighty percent of companies …
Optimism on U.S.—China trade helped markets extend gains for the third straight week. Stocks are at record levels as the third quarter earnings season slows into its final weeks. Of the 446 companies in the S&P 500 that have reported 3Q earnings, 74% have exceeded expectations, 7% have met expectations and 19% have reported …
The corporate earnings season has so far been less negative than originally anticipated. Of the 199 companies that have reported 3Q earnings, 78% have exceeded expectations, 7% have met expectations, and 15% have reported below expectations. This has improved current earnings estimates for the quarter to a 2.0% decline in year/year earnings on 3.4% …
Investors were surprised late last week by the announcement that the U.S. would impose a 5% tariff on all goods imported from Mexico and gradually increase them until the flow of illegal immigrants stopped. The economic and political uncertainty of this policy added to the uncertainty currently in the market from the U.S.—China trade …
Despite increased tensions with Iran and the start of the summer driving season, crude oil had its steepest decline since the late December lows, down 6.6% for the week. The equity markets also extended their recent decline with most averages adding to multi-week declines. As a follow-up to last week’s comments on the American …
U.S.-China Trade dominated the headlines last week. As trade talks stalled, the U.S. increased the previously announced tariffs on Chinese goods from 10% to 25%. The U.S. is also investigating options for tariffs on an additional $300 billion of Chinese-made goods not currently under tariffs. The Chinese Vice Premier spent last week in the …
The S&P 500 Index added to an impressive first quarter return by posting a 2.1% return in the first week of 2019’s second quarter. Economic and trade optimism buoyed equity markets. Later this week, the first quarter earnings season kicks off with major banks J.P. Morgan Chase, Wells Fargo, and PNC announcing their quarterly …
The S&P 500 closed out its best first quarter since 2009. The quarter came in like a lion and went out like a lamb. The giant January rebound (+8.0%) stepped down to more normal returns in February (+3.2%) and March (+1.9%). The quarterly gain almost erased the steep decline from the fourth quarter of …
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