May 24, 2024, Weekly Stock Market Return Recap, by Kip Lytel CFA. The S&P 500 narrowly missed breaking its previous record set on Tuesday, but still managed to achieve a fifth consecutive week of gains, eking out 0.03%. The Dow Jones Industrial Average experienced a sharp loss of 2.3%, whereas the Nasdaq composite soared by 1.4% to surpass its previous all-time high established earlier in the week. The inflationary overhang continues to weigh on stocks, which is problematic for the Fed reserve. US business activity accelerated to the highest level in just over two years in May, with the US Composite PMI Output Index coming in hot at 54.4. Any PMI reading above 50 indicates expansion in the private sector.
May 17, 2024, Weekly Stock Market Return Recap, by Kip Lytel CFA. US equity markets marked another strong weekly performance led by tech-based Nasdaq +2.1% followed by the S&P 500 +1.5% and the Dow Jones +1.2%. Investor sentiment expressed renewed optimism that the economy is heading for a soft landing and may therefore still have Fed rate cut support, while projections for strong earnings continue to fuel stock gain. Consumer price index data for April showed moderating core inflation while retail sales also cooled more than expected. The core CPI, which strips out volatile food and energy prices, rose 0.3% compared to March levels, in line with estimates. Moreover, annual core CPI inflation rate eased to 3.6% from 3.8% in March.
May 10, 2024, Weekly Stock Market Return Recap, by Kip Lytel CFA.The broad US market equity index marked its third consecutive weekly positive performance with the S&P 500 finishing with +1.67% return. The S&P 500 now sits only about 1% away from its all-time closing high of 5,254.35 set on March 28, 2024. Stocks were buoyed by job numbers with new claims for unemployment benefits increasing more than expected to a seasonally adjusted 231,000 last week, which sparked hopes for Fed rate cuts ahead. The S&P 500's operating profit margin for the first quarter of 2024 was 11.8%, which is higher than the profit margin for the trailing four quarters of 11.4%, and superior to both the calendar years of 2023 and 2022.
May 3, 2024, Weekly Stock Market Return Recap, by Kip Lytel CFA. For the week, both the Dow and the Nasdaq gained 1.1% while the S&P 500 finished up 0.6%. Recent economic data show that inflation remains stubbornly above the Fed's 2% target, putting 2024 rate cuts at risk, or at least more muted. Consumer confidence fell sharply in April as inflation worries and a lackluster outlook on the job market squashed optimism to its lowest level since 2022. The Conference Board's consumer confidence index retreated to 97 in April, below economists' expectations of 104, and below March's reading of 103.1.
May 17, 2024, Weekly Stock Market Return Recap, by Kip Lytel CFA. US equity markets marked another strong weekly performance led by tech-based Nasdaq +2.1% followed by the S&P 500 +1.5% and the Dow Jones +1.2%. Investor sentiment expressed renewed optimism that the economy is heading for a soft landing and may therefore still have Fed rate cut support, while projections for strong earnings continue to fuel stock gain. Consumer price index data for April showed moderating core inflation while retail sales also cooled more than expected. The core CPI, which strips out volatile food and energy prices, rose 0.3% compared to March levels, in line with estimates. Moreover, annual core CPI inflation rate eased to 3.6% from 3.8% in March.
May 10, 2024, Weekly Stock Market Return Recap, by Kip Lytel CFA.The broad US market equity index marked its third consecutive weekly positive performance with the S&P 500 finishing with +1.67% return. The S&P 500 now sits only about 1% away from its all-time closing high of 5,254.35 set on March 28, 2024. Stocks were buoyed by job numbers with new claims for unemployment benefits increasing more than expected to a seasonally adjusted 231,000 last week, which sparked hopes for Fed rate cuts ahead. The S&P 500's operating profit margin for the first quarter of 2024 was 11.8%, which is higher than the profit margin for the trailing four quarters of 11.4%, and superior to both the calendar years of 2023 and 2022.
May 3, 2024, Weekly Stock Market Return Recap, by Kip Lytel CFA. For the week, both the Dow and the Nasdaq gained 1.1% while the S&P 500 finished up 0.6%. Recent economic data show that inflation remains stubbornly above the Fed's 2% target, putting 2024 rate cuts at risk, or at least more muted. Consumer confidence fell sharply in April as inflation worries and a lackluster outlook on the job market squashed optimism to its lowest level since 2022. The Conference Board's consumer confidence index retreated to 97 in April, below economists' expectations of 104, and below March's reading of 103.1.