May 8, 2021
Market Recap Week Ending May 7
The week in review…Dow +914 or +2.7%, Nasdaq (210) or (1.5%), and the S&P +51 or +1.2%. While the week was dominated by more great earnings reports, the economic data started to moderate a bit. One manufacturing number came in even with expectations while another missed significantly. The services number beat but non-manufacturing missed significantly. Initial jobless claims were better, but the April jobs number was an unmitigated disaster. Add to this cauldron of information a rare, off message gaffe from Secretary of the Treasury Yellen, and it all added up to a very odd week. The Dow and the S&P closed Friday at record levels but the 10-year U.S. Treasury yield fell from 1.625% to 1.57%, perhaps showing some fear in the marketplace. Earnings will start to tail off next week, but we have some good ones to watch; Coinbase and Roblox report their first quarters as public companies and Thursday we get Disney, DoorDash, and Airbnb.
What we are watching next week…
Monday – Marriott International (MAR 4c on $2.38b): should the trend continue, MAR should miss their numbers by a wide margin (see H, HLT, CZR). Roblox (RBLX 8c on $573mn) reports their first quarter as a public company.
Tuesday – Electronic Arts (EA $1.06 on $1.4b), Palantir (PLTR 4c on $332mn).
Wednesday – Applied Materials (AMAT $1.50 on $5.39b), Consumer Price Index, Core CPI.
Thursday – Disney (DIS 27c on $15.86b), DoorDash (DASH -8c on $994mn), Airbnb (ABNB -$1.05 on $718mn), Coinbase (COIN $2.98 on $1.81b) reports its first quarter as a public company, Jobless Claims.
Friday – April Retail Sales.
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Disclaimer: This is not a recommendation to either buy or sell any of the securities listed above. I personally, or a family member’s account for which I control, own the following…Bitcoin (coin), Cardano (coin), Chainlink (coin), Ethereum (coin), ETHE, GBTC, TSLA, and WKHS.