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S&P 500 ekes out intraday record

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  • S&P 500 ekes out intraday record

    Nice to see some decent economic news for a change.

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    S&P 500 ekes out intraday record as Wall Street braces for big week of earnings and economic data

    Published Mon, Apr 29 2019 • 2:51 AM EDT Updated an hour ago



    Stocks traded along the flatline on Monday as investors braced for a busy week including a flurry of corporate earnings reports, economic data and an announcement from the Federal Reserve.

    The Dow Jones Industrial Average traded just 6 points higher. The S&P 500 climbed 0.06% and eked out an intraday record, breaking above 2,940.91. The Nasdaq Composite rose 0.1%.

    “This may be the busiest week of everything in terms of catalysts,” said Art Hogan, chief market strategist at National Securities. “It makes sense for us to be sideways heading into that at best.”



    About 150 S&P 500 companies are scheduled to release their quarterly results this week, including Apple, General Electric and Qualcomm. Alphabet and Western Digital will release their first-quarter numbers after the bell on Monday.

    Earlier on Monday, Restaurant Brands reported weaker-than-expected earnings after a surprise drop in Tim Hortons sales, sending its shares down 2.9%. Spotify Technology posted a bigger-than-forecast loss, but its stock went up 2.4% as the company also said it reached 100 million subscribers for its premium service.

    So far, 231 companies in the S&P 500 have reported quarterly results. Of those companies, 77.5% have topped analyst expectations, according to data from FactSet. The reported earnings growth rate, meanwhile, is around 1%, well above the expected 4.2% drop.

    “Everyone has forgotten the term earnings recession,” Hogan said. “It was a bad case of premature extrapolation to think we were going to have an earnings recession.”

    Strong corporate reports helped push the S&P 500 and Nasdaq Composite to record closing highs last week. The two indexes also notched solid weekly gains.

    “From a technical perspective, the SPX is back in record high territory after closing above its September ’18 high,” Craig Johnson, chief market technician at Piper Jaffray, said in a note. “However, for a record high week, volume was lackluster and only a relatively small percentage of constituents registered new highs.”

    “Improving fundamentals and FOMO sentiment have pushed stocks back into record high territory,” Johnson said. “Overbought conditions have now developed and market breadth has not confirmed the recent breakout. We believe some consolidation is likely and advise investors to consider realizing some gains at this juncture.”

    On the data front, April’s nonfarm payrolls report is scheduled for release Friday along with international trade numbers. Factory orders, construction spending and consumer confidence data are all due for release this week.

    The core personal consumption expenditures index — the Federal Reserve’s preferred measure of inflation — remained unchanged in March, data released Monday showed. Economists polled by Refinitiv expected a gain of 1.7%.

    The Federal Reserve is also set to hold a monetary policy meeting this week. Investors will be looking for clues about the central bank’s plan for its balance sheet moving forward, as well as hints on where Fed officials think the economy is headed.

    Market expectations for a Fed rate hike are zero, while expectations for no change in the overnight rate are at 97%, according to the CME Group’s FedWatch tool.

    —CNBC’s Silvia Amaro contributed to this report.


    Source article here.
    james.c.hendrickson@gmail.com
    202.468.6043

  • #2
    Market has been down the past two days, as analysts were hoping for a rate cut in the near future.
    I'm not sure why anyone would think a cut was coming. I expected the Fed to hold steady on rates, which they have.
    Brian

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    • #3
      Originally posted by bjl584 View Post
      I'm not sure why anyone would think a cut was coming. I expected the Fed to hold steady on rates, which they have.
      Because you have the DC administration spreading misinformation and accusing the Fed of mismanagement and not knowing what they're doing, none of which is true of course.

      In the meantime, the president is 0 for 2 with his picks for the Fed both being forced to drop out of contention due to various issues.
      Steve

      * Despite the high cost of living, it remains very popular.
      * Why should I pay for my daughter's education when she already knows everything?
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      • #4
        Originally posted by disneysteve View Post

        Because you have the DC administration spreading misinformation and accusing the Fed of mismanagement and not knowing what they're doing, none of which is true of course.

        In the meantime, the president is 0 for 2 with his picks for the Fed both being forced to drop out of contention due to various issues.
        The fed typically isn't swayed too much by an administration or the daily mood on wall street. And I'd have to think that anyone who is a professional analyst isn't going to blindly listen to the media or a politician when analysing the feds next move
        Brian

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        • #5
          Yeah, I don't know why the professional analysts were expecting a rate cut. The political nonsense shouldn't be influencing them (unless they subscribe to that political affiliation).
          Steve

          * Despite the high cost of living, it remains very popular.
          * Why should I pay for my daughter's education when she already knows everything?
          * There are no shortcuts to anywhere worth going.

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