In this week’s recap: stocks advance after earnings season
gets off to an encouraging start, and consumer prices rise the most in more
than a year.
Weekly Economic Update
THE WEEK ON WALL STREET
Stocks
broke out of a narrow range on Friday following news that two major banks grew
their bottom line in the first quarter. For the week, the S&P 500 rose
0.79%; the Nasdaq Composite, 0.91%. The Dow Jones Industrial Average improved
0.50%. Turning to overseas stocks, the MSCI EAFE index declined 0.09%.1-4
The
market spent much of the week in a lull as investors waited for earnings season
to begin. Wall Street is paying close attention to both guidance and profit
margins.
Big Banks Post Solid
Results
Friday,
Wells Fargo and JPMorgan Chase both reported Q1 profit growth, and JPMorgan
Chase announced record revenue.5
This
was welcomed news. Analysts have tempered some of their expectations entering
this earnings season, recognizing that slowing global growth, tariffs, and
dollar strength may be affecting corporate profits. (The dollar rallied 6.2% in
Q1.)6
Inflation Picks Up
The
Consumer Price Index rose 0.4% in March, the most in 14 months. This matched
the consensus forecast of economists polled by MarketWatch, who believed rising
gas prices would affect the number.
Even
with this March jump, annual inflation remained relatively tame at 1.9%.7
What’s Ahead
Note
that U.S. stock and bond markets will be closed on Good Friday (April 19).
T I P O
F T H E W E E K
Life insurance is not solely for people with spouses and kids. If you are a caregiver to an ill parent, have significant debt, or simply wish to avoid having others pay for your funeral, life insurance coverage could prove very important in the event of your passing.
THE WEEK AHEAD: KEY ECONOMIC DATA
Thursday: March retail
sales.
Friday: March
housing starts and building permits.
Source:
Econoday / MarketWatch Calendar, April 12, 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: Citigroup (C), Goldman Sachs (GS)
Tuesday: Bank of America (BAC), BlackRock
(BLK), Comerica (CMA), IBM (IBM), Johnson & Johnson (JNJ), Netflix (NFLX),
UnitedHealth Group (UNH)
Wednesday: Abbott Labs (ABT), Alcoa (AA), Bank
of New York Mellon (BNY), Morgan Stanley (MS), PepsiCo (PEP), U.S. Bancorp
(USB), United Rentals (URI)
Thursday: American Express (AMEX), Honeywell
(HON), Manpower (MAN), Philip Morris (PM), Schlumberger (SLB), Travelers
Companies (TRV), Union Pacific (UNP).
Source:
Morningstar.com, April 12, 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
“To fly
we have to have resistance.”
MAYA
LIN
T H E W E E
K L Y R I D D L E
Name two
English words (longer than two letters) that both begin and end with the letters “he” (in that order).
LAST
WEEK’S RIDDLE: What is the timepiece with the most moving parts? (It has been
around for centuries.)
ANSWER:
The hourglass.
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.
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CITATIONS:
4 - quotes.wsj.com/index/XX/990300/historical-prices [4/12/19]
6 - tinyurl.com/y45wuftu [4/12/19]
7 - marketwatch.com/story/higher-gas-prices-boost-cost-of-living-in-march-but-inflation-still-soft-cpi-shows-2019-04-10
[4/10/19]
CHART CITATIONS:
quotes.wsj.com/index/DJIA [4/12/19]
quotes.wsj.com/index/COMP [4/12/19]
quotes.wsj.com/index/XX/990300/historical-prices
[4/12/19]
markets.wsj.com [4/12/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
[4/12/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll
[4/12/19]
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