In this week’s recap: stocks move sideways as earnings
season gathers momentum, and retail sales jump.
Weekly Economic Update
THE WEEK ON WALL STREET
A
short and relatively placid trading week wrapped up Thursday, with the major
indices turning in mixed performances. The S&P 500 retreated 0.08%, the
Nasdaq Composite advanced 0.17%, and the Dow Jones Industrial Average gained
0.56%. The MSCI EAFE index, tracking foreign stocks in developed countries,
added 0.65%.1-4
Nothing
really catalytic emerged to drive the market last week, and volumes were low.
Earnings Season Update
More
than 78% of S&P 500 firms reporting so far this earnings season have
surpassed analyst expectations, according to FactSet. Since guidance tends to
be conservative, there is the possibility that more companies will beat
forecasts than expected.5
The
initial public offering market remained strong. Two high-profile technology
companies came public on Thursday and were met with enthusiasm from investors.
As mentioned in recent weeks, 2019 could be a banner year for IPOs.
Retail Sales Rebound
March’s
1.6% gain was the biggest monthly advance seen since September 2017. Sales of
cars and gasoline rose more than 3%.6
If
the upcoming March consumer spending report is also impressive, concerns about
the current business cycle peaking may recede.
Final Thought
Nearly
800 companies will report earnings this week, including some high-profile
names. This kicks off five weeks of active daily earnings reports.
Investors
will watch corporate profits, guidance, and fundamental indicators with great
interest, to try and glean whether the economy is strengthening or softening.
Reports on first-quarter economic growth and existing home sales will command
particular attention.
T I P O
F T H E W E E K
Your insurance needs should be reevaluated every few years. Life events like a marriage, a home purchase, or retirement may mean you need more (or less) coverage.
THE WEEK AHEAD: KEY ECONOMIC DATA
Monday: March existing home sales figures
from the National Association of Realtors.
Tuesday: March new home sales numbers from
the Census Bureau.
Friday: The first estimate of first-quarter
gross domestic product (GDP) from the federal government, and the final April
University of Michigan consumer sentiment index, a gauge of consumer confidence
levels.
Source:
Econoday / MarketWatch Calendar, April 18, 2019
The content is developed from sources believed to be providing
accurate information. The forecasts or forward-looking statements are based on
assumptions and may not materialize. The forecasts also are subject to revision.
The release of data may be delayed without notice for a variety of reasons.
THE WEEK AHEAD: COMPANIES REPORTING
EARNINGS
Monday: Halliburton (HAL), Kimberly-Clark
(KMB), Whirlpool (WHR)
Tuesday: Coca-Cola (KO), Harley-Davidson
(HOG), Procter & Gamble (PG), Twitter (TWTR), Verizon (VZ)
Wednesday: Anthem (ANTM), Boeing (BA),
Caterpillar (CAT), Facebook (FB)
Thursday: 3M (MMM), AbbVie (ABBV), Amazon
(AMZN), Starbucks (SBUX)
Friday: American Airlines (AAL),
Colgate-Palmolive (CL), ExxonMobil (XOM)
Source:
Morningstar.com, April 18, 2019
Companies
mentioned are for informational purposes only. It should not be considered a
solicitation for the purchase or sale of the securities. Any investment should
be consistent with your objectives, time frame, and risk tolerance. The return
and principal value of investments will fluctuate as market conditions change.
When sold, investments may be worth more or less than their original cost.
Companies may reschedule when they report earnings without notice.
Q U O T E O F T H E W E E K
“You
are the only person on earth who can
use your ability.”
ZIG
ZIGLAR
T H E W E E
K L Y R I D D L E
It has keys
that open no locks. Yet, it lets you
enter and create spaces. What is it?
LAST
WEEK’S RIDDLE: Name two English words (longer than two letters) that both begin
and end with the letters “he” (in that order).
ANSWER:
Headache and heartache.
Troy L Thompson, CFP may be reached at 515-432-5421
or troy@thompsonfinancialinc.com
www.thompsonfinancialinc.com
www.thompsonfinancialinc.com
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Troy Thompson, CFP
DBA Thompson Financial and Hanson Asset Strategies
Securities offered through FIRST HEARTLAND CAPITAL, INC.
Member FINRA & SIPC.
Thompson Financial is not affiliated with FIRST HEARTLAND
CAPITAL, INC.
This
material was prepared by MarketingPro, Inc., and does not necessarily represent
the views of the presenting party, nor their affiliates. The information herein
has been derived from sources believed to be accurate. Please note - investing
involves risk, and past performance is no guarantee of future results.
Investments will fluctuate and when redeemed may be worth more or less than
when originally invested. This information should not be construed as
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avoiding any Federal tax penalty. This is neither a solicitation nor
recommendation to purchase or sell any investment or insurance product or
service, and should not be relied upon as such. All market indices discussed
are unmanaged and are not illustrative of any particular investment. Indices do
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All economic and performance data is historical and not indicative of future
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market-weighted index of all over-the-counter common stocks traded on the
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1 - quotes.wsj.com/index/SPX [4/18/19]
4 - quotes.wsj.com/index/XX/990300/historical-prices [4/18/19]
5 - cnbc.com/2019/04/18/stocks-market-earnings-retail-sales-and-jobless-data-in-focus.html
[4/18/19]
6 - reuters.com/article/us-usa-economy-retail/us-retail-sales-post-biggest-gain-in-one-and-a-half-years-in-march-idUSKCN1RU1GI
[4/18/19]
quotes.wsj.com/index/SPX [4/18/19]
quotes.wsj.com/index/DJIA [4/18/19]
quotes.wsj.com/index/COMP [4/18/19]
quotes.wsj.com/index/XX/990300/historical-prices
[4/18/19]
markets.wsj.com [4/18/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
[4/18/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll
[4/18/19]
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