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
[Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities.]
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
Note that U.S. stock and bond markets will be closed on Good Friday (April 19).
The Week Ahead: Key Economic Data
- Thursday: March retail sales.
- Friday: March housing starts and building permits.
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).
|Market Index||Close April 12||Week %||YTD %|
|Treasury||Close April 12||Week %||YTD %|
|10 Year Note||2.56||+0.06||-0.13|
Sources: wsj.com, treasury.gov – 4/12/19
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. Weekly and year-to-date market index returns are expressed as percentages. 10-year Treasury note yield = projected return on investment, expressed as a percentage, on the U.S. government’s 10-year bond. Weekly and year-to-date 10-year Treasury note yield differences are expressed in basis points.