Indices
Dow 40,318, +1205, or+3.00%.
Nasdaq 17,977,+595or+3.42%.
S&P 5,686, +161, or+2.91%.
MSCI EAFE 2536.37, +75.91or+3.09%.
USD10Y 4.322%, +5.6bp or +13.13%.
WTI Crude $58.29/bbl, -$4.89or -7.74%.
Quick Thoughts
It was a good week for the markets last week. Catalysts included good inflation data from the Personal Consumption Expenditure (PCE), Facebook (META) and Amazon (AMZN) earnings, and a decent non-farm payrolls report. However, investors didn’t have to look far to see some additional causes for concern;
- Coca Cola (KO) beat their numbers despite weak north American demand.
- General Motors (GM) beat but referred to their guidance as unreliable due to uncertainty surrounding tariffs.
- Starbucks (SBUX) missed their numbers.
- Super Micro Computer (SMCI) pre-announced an earnings miss.
- Caterpillar (CAT) missed both top and bottom-line estimates.
- Yum Brands (YUM) missed (owner of Pizza Hut, KFC and Taco Bell).
- McDonalds reported a mixed quarter, but their same-store sales decreased by -3.6%, the largest decline since 2022 and the CEO cited weakness growing from their lower income demographic into the middle-income segment of their customer base.
- While both Amazon and Apple reported good quarters both firms noted the uncertain environment going forward due to the trade/tariff issue.
The Upcoming Week: May 5 – May 9
The Fed will dominate the economic releases this week. While there is only a 2.4% chance of a rate cut, the markets will be parsing every word of Fed Chair Powell’s press conference that will follow the decision.
The earnings calendar is light this week.
Economic Calendar
Monday – April Final U.S. Services S&P and ISM PMIs. Earnings: Ford (F).
Tuesday – N/A. Earnings: Advanced Micro Devices (AMD), Rivian (RIVN).
Wednesday – FOMC Interest Rate Decision, Fed Chair Powell Press Conference. Earnings: Disney (DIS), Uber (UBER), DoorDash (DASH).
Thursday – Initial Jobless Claims. Earnings: Coinbase (COIN), Expedia (EXPE).
Friday – N/A. Earnings: N/A.
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Disclaimer: This is not a recommendation to buy or sell any of the securities listed above. I personally, or a family member whose account I control, have positions in the following securities/assets...Bitcoin, Ethereum, Solana, ACHR, BITB, NVDA, and RIVN.