-April 26, 2019 Weekly Capital Market Update. The S&P 500 Index reached a record high this week as the market rebound continues: the S&P 500 rose +1.20% while the Dow Jones Industrial Average dropped -0.06%. First quarter (1Q) 2019 real GDP surprised to the upside at 3.2% (2.3% expected), but was driven more by Inventories and trade as opposed to the overall corporate earnings growth. This explains how GDP can rise while corporate earnings are depressed. While the S&P 500 is reporting its first year-over-year decline (-2.8%) in quarterly earnings since Q2 2016 Mr. Market remains focused on the glass half full, such as 77% of S&P 500 companies have beaten EPS estimates for Q1 to date. Approximately 38% of companies in the S&P 500 have reported quarterly results and the market continues to embrace that earnings, though down, are better than expectations, or just falling -2.8% vs. the projection of -4.2%.
-April 19, 2019 Weekly Capital Market Update. The S&P 500 returned +0.60% on the week and sits less than 1% off the highs, showing the broad equity market index continues to face resistance at the prior highs. Not only is the S&P 500 still fighting resistance these past weeks, but the index has also has been marked by relatively calm volume and volatility. It is obviously apparent that from a technical standpoint the market brushed off the much-hyped Mueller report as inconsequential. As for first quarter earnings, the S&P 500 is reporting revenue growth of +5.0% in Q1 2019, which would be the lowest revenue growth for the index since Q4 2016; earnings are on a pace with about a -4% decline. The forward 12-month P/E ratio for the S&P 500 is 16.7. This P/E ratio is above the 5-year average (16.4) and above the 10-year average (14.7).
-April 12, 2019 Weekly Capital Market Update. The S&P 500 reached an important milestone on Friday when the Index crossed 2900 for the first time since last October; the broad market index finished +0.51% on the week. The equity markets were supported by a positive start to earnings season and this may bode well for corporate commentaries on expectations for the remainder of 2019. Additional market stability stemmed from the FOMC minutes where Fed officials largely approved a "patient" approach to monetary policy going forward.
-April 5, 2019 Weekly Capital Market Update. China’s release of strong economic data on Sunday set the stage for across-the-board market for the week, which was also aided by Monday’s upbeat comments from U.S. and Chinese officials on the progress of trade negotiations: S&P 500 Index +2.06%, the Dow Jones Industrial Average +1.91% and the Nasdaq 2.71%. The S&P 500 is now only 1.5% off its all-time-high from August of last year. Next week brings first quarter earnings season where financials are the first early indicators with JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC). Estimated earnings are expected to decline for the S&P 500 by -4.2%; this would mark the first year-over-year decline in earnings for the index since Q2 2016.
-April 19, 2019 Weekly Capital Market Update. The S&P 500 returned +0.60% on the week and sits less than 1% off the highs, showing the broad equity market index continues to face resistance at the prior highs. Not only is the S&P 500 still fighting resistance these past weeks, but the index has also has been marked by relatively calm volume and volatility. It is obviously apparent that from a technical standpoint the market brushed off the much-hyped Mueller report as inconsequential. As for first quarter earnings, the S&P 500 is reporting revenue growth of +5.0% in Q1 2019, which would be the lowest revenue growth for the index since Q4 2016; earnings are on a pace with about a -4% decline. The forward 12-month P/E ratio for the S&P 500 is 16.7. This P/E ratio is above the 5-year average (16.4) and above the 10-year average (14.7).
-April 12, 2019 Weekly Capital Market Update. The S&P 500 reached an important milestone on Friday when the Index crossed 2900 for the first time since last October; the broad market index finished +0.51% on the week. The equity markets were supported by a positive start to earnings season and this may bode well for corporate commentaries on expectations for the remainder of 2019. Additional market stability stemmed from the FOMC minutes where Fed officials largely approved a "patient" approach to monetary policy going forward.
-April 5, 2019 Weekly Capital Market Update. China’s release of strong economic data on Sunday set the stage for across-the-board market for the week, which was also aided by Monday’s upbeat comments from U.S. and Chinese officials on the progress of trade negotiations: S&P 500 Index +2.06%, the Dow Jones Industrial Average +1.91% and the Nasdaq 2.71%. The S&P 500 is now only 1.5% off its all-time-high from August of last year. Next week brings first quarter earnings season where financials are the first early indicators with JPMorgan (NYSE:JPM) and Wells Fargo (NYSE:WFC). Estimated earnings are expected to decline for the S&P 500 by -4.2%; this would mark the first year-over-year decline in earnings for the index since Q2 2016.