Readers Who Bought Tech During The Selloff, Watch For These Factors

Home Market Outlook: The market should continue to rise this week, particularly in the tech sector. Fed President Powell's dovish FOMC statement and the softer April jobs report will contribute to market optimism this week. The Factors are technical and economic data-related, with market psychology thrown in. David Lerner: Buy The Sell-Off Into The FOMc Meeting, Stay With Tech.

Earnings estimates for the Magnificent 7 are ramping up. What about the other 493?

The Magnificent 7 contributes about one-fifth of the earnings growth to the S&P 500. Apple, Amazon, Microsoft and Tesla have seen Q1 earnings estimates rise more than 29%. Analysts are ramping up expectations for the other 493 stocks. The other 7 stocks contribute about a fifth of the growth to s&p 500.

S&P 500: Ready For The Squeeze, Week Starting 6th May (Technical Analysis)

S&P500 closed +28 points higher on Thursday and Friday. The S&P 500's weekly and monthly averages are both neutral to bearish. The 20-week MA held for the third week in a row. Downside follow through in May is likely, but the market is still in a bullish mood.

The VIX Sent The Stock Market Higher, Not A 'Dovish' Fed

The stock market rally during Powell's press conference was due to the 2:35 PM ET VIX melt. Powell's recent press conference did not indicate a dovish stance on rate cuts in 2024. The immediate price action following the Fed meeting does not accurately reflect the market's longer-term direction.

Flush Money Market Funds Typically Mean Rally

Todd Sullivan says the majority of investors are still expecting a recession in the U.S. He says the record high Retail Money Fund level is consistent with a recession. The current market is in the middle of economic growth, not a recession, he says. Shorting T-Bills pushes rates higher and out of sync with the current level of pessimism. Investors should focus on well-managed companies reporting upside surprises.

May 2024 Monthly

Truist says stocks are in reset mode versus a fundamental retreat

Truist says stocks are in reset mode versus a fundamental retreat. Truist says earnings-growth potential among the supportive pillars for equities over the next year. The S&P 500 fell 4.2% last month, the first monthly decline since October. The firm upgraded equities to a more attractive view.

Weekly Indicators: Energy Prices Now Closer To Bottom Of 3-Year Range

High frequency weekly indicators provide a good "now cast" of the economy and suggest a "soft landing" scenario. Energy prices are now closer to the bottom of their three-year range. Long leading indicators continue to be “less negative” April data started out with a positive but mediocre jobs report.

Will U.S. Economy Stabilize In Q2 2024 After 2 Quarterly Downshifts?

Weaker U.S. Job Numbers Boost Expectations Of A September Rate Cut

Weaker U.S. Job Numbers Boost Expectations Of A September Rate Cut. Non-farm payrolls rose 175k in April versus the 240k consensus. Job creation was weaker, unemployment higher and wage growth more subdued than expected in the April employment report. The unemployment rate moves up to 3.9% from 3.8% and the average work week dropped to 34.4 hours. The report has breathed new life into Federal Reserve interest rate cut calls.

Jobs: Household Report Is Way Below A Weak Headline Number

The BLS reported a gain of 175k jobs which was below expectations of about 200k. The Household Survey was high last month but came in way below the Headline number. The unemployment rate rose slightly to 3.9%. April saw a reversal where part-time jobs were replaced by full-time. The BLS report was released on the first Friday of every month.

Weak Labor Market? Not Quite Yet

April saw a larger than expected drop in job creation, but the 12-month trend remains relatively flat. The Bureau of Labor Statistics released the April nonfarm payroll report. Early indicators suggest the labor market may be settling down. The labor market is not weak enough to justify a rate cut, says Jeremy LaKosh.

S&P 500: Recession To Hit Right Before The Election

Ism Services for April shows contraction in the U.S. Service sector. The labor market report for April showed that the economy added 175K fewer jobs than expected. The ISM Services PMI for April came at 49.4, which indicates a recession in Q3 2024. S&P 500 is facing a recessionary bear market. An imminent recession is due to an inverted yield curve.

Apple stock: 10 ETFs with large weightings of the iPhone maker

Tech Apple stock: 10 ETFs with large weightings of the iPhone maker. Apple's stock is on course for the largest single-day percentage gain since November 2022. The board authorized repurchases of an additional $110B shares of the company, the largest share buyback program in U.S. History.

The Jobs Report: A Soft Landing At Hand

'Goldilocks' April jobs report will please Fed and markets, economist El-Erian says

'Goldilocks' April jobs report will please Fed and markets, economist El-Erian says. 175K jobs were added to the economy in April, well below the consensus estimate. Former PIMCO CEO says softness in wages will be embraced by the Federal Reserve and financial markets.

Softer April Jobs Growth, Bulls And Doves Rejoice

April nonfarm payrolls increased by 175,000, below estimates, and pulled forward rate-cut expectations. Unemployment rate ticks up to 3.9% in April from 3.8% in March. Average hourly earnings came in softer than expected, signaling a decline in wage gains. Stocks futures jumped and yield plunged, but key data remains on tap.

SPY: Don't Buy The Dip Just Yet

Growing discrepancy between interest rates and the upward trend of the S&P 500 is a threat, says Danil Sereda. He remains skeptical about a rate cut and sees a low probability of a cut this year. He says the economy is doing well and the broader market is also doing well.

April Jobs Report: Growth Cools Below 200K

Labor Department reports 175,000 jobs were added in April, well below expectations. Unemployment also ticked higher, while wage growth slowed further. Notable cooling occurred in both the healthcare and government sectors. The April jobs report is unlikely to change the Federal Reserve's current interest rate trajectory.

Fed Balance Sheet QT: -$1.60 Trillion From Peak To $7.36 Trillion, Lowest Since December 2020

Total assets on the Fed’s balance sheet fell by $77 billion in April, to $7.36 trillion, the lowest since December 2020. Since the end of pandemic QE in April 2022, the Fed has shed $1.60 trillion. The Fed has removed 38% of Treasury securities and 27% of MBS from the balance sheet.