In this week’s recap: stocks come all the way back from
their December lows, Q1 growth surpasses expectations, and earnings take center
stage.
Weekly Economic Update
THE WEEK
ON WALL STREET
Stocks
returned to record territory, with both the S&P 500 and the Nasdaq
Composite closing at historic highs. The S&P gained 1.20% for the week; the
Nasdaq, 1.85%. The Dow Jones Industrial Average lagged, losing 0.06%. The MSCI
EAFE index of international stocks lost 0.52%.1-2
The
S&P took only 17 weeks to fully rebound from its December low.3
A SHIFT
IN FOCUS
Last
month, Wall Street fixated on trade, reacting to even the slightest hint of
progress in U.S.-China negotiations. This month, the trade talks have taken a
back seat, and the fixation is on earnings.
Anxieties
about a possible earnings recession may be fading. So far, first-quarter
results for S&P 500 firms are 5.3% above expectations, which compares to a
5-year average of 4.8%.4
At
some point, trade talk will come back, or other developments will lead Wall
Street to chase other trends. The thing to remember is that Wall Street is
fickle: what preoccupies it one week may be shrugged off the next. Short-term
trends ultimately amount to background noise during the long-term pursuit of
your financial goals.
A Strong
first quarter
Friday,
the Bureau of Economic Analysis said that the economy expanded at a 3.2% pace
in Q1. The number surprised to the upside. Economists surveyed by Dow Jones
estimated Q1 gross domestic product would increase 2.5%.5
What’s
ahead
Investors
have all kinds of news to consider this week. There will be a plethora of
earnings calls, plus important reports on consumer spending and hiring. Also,
Federal Reserve chair Jerome Powell will hold a press conference following the
central bank’s May meeting.
T I P O F
T H E W E E K
Too many business owners apply for loans too late. Financing is more likely to be approved when a business is financially stable. A loan arranged when a business is healthy could be used for business expansion as well as emergencies.
THE WEEK
AHEAD: KEY ECONOMIC DATA
Monday: March personal spending figures from the Department
of Commerce.
Tuesday: The Conference Board’s April consumer confidence
index.
Wednesday: The Federal Reserve announces its latest interest
rate decision.
Friday: The April jobs report from the Department of Labor.
Source:
Econoday / MarketWatch Calendar, April 26, 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: Alphabet (GOOGL), Kemper (KMPR)
Tuesday: Amgen (AMGN), Apple (AAPL), Cummins (CMI),
McDonalds (MCD)
Wednesday: Allstate (ALL), CVS Health (CVS), Humana (HUM),
Public Storage (PSA)
Thursday: CBS (CBS), Cigna (CI), Dunkin’ Brands (DNKN),
Gilead Sciences (GILD)
Friday: Fiat Chrysler (FCAU)
Source:
Morningstar.com, April 26, 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 can only perceive real beauty in a person as they get
older.”
ANOUK AIMEE
T H E W E E K L Y
R I D D L E
It walks on four legs in the
morning, two legs at noon, and three legs in the evening. What is it?
LAST WEEK’S
RIDDLE: It has keys that open no locks. Yet, it lets you enter and create
spaces. What is it?
ANSWER: A
keyboard.
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
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for the purpose of avoiding any Federal tax penalty. This is neither a
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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 not incur management fees, costs and expenses, and cannot be
invested into directly. All economic and performance data is historical and not
indicative of future results. The Dow Jones Industrial Average is a
price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ
Composite Index is a market-weighted index of all over-the-counter common
stocks traded on the National Association of Securities Dealers Automated
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weighted index composed of the common stocks of 500 leading companies in
leading industries of the U.S. economy. NYSE Group, Inc. (NYSE:NYX) operates
two securities exchanges: the New York Stock Exchange (the “NYSE”) and NYSE
Arca (formerly known as the Archipelago Exchange, or ArcaEx®, and the Pacific
Exchange). NYSE Group is a leading provider of securities listing, trading and
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(NYMEX) is the world's largest physical commodity futures exchange and the
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through two divisions – the NYMEX Division, home to the energy, platinum, and
palladium markets, and the COMEX Division, on which all other metals trade.
Additional risks are associated with international investing, such as currency
fluctuations, political and economic instability and differences in accounting
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1 - markets.wsj.com/usoverview
[4/26/19]
2 - quotes.wsj.com/index/XX/990300/historical-prices [4/26/19]
3 - bloomberg.com/news/articles/2019-04-23/abyss-averted-in-stocks-as-valuations-and-rates-restore-bull-run
[4/23/19]
4 - insight.factset.com/earnings-season-update-april-26-2019
[4/26/19]
5 - cnbc.com/2019/04/26/gdp-q1-2019-first-read.html [4/26/19]
CHART CITATIONS:
markets.wsj.com/usoverview [4/26/19]
quotes.wsj.com/index/SPX/historical-prices
[4/26/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
[4/26/19]
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