Record Closes & Benign Inflation Data – Mar 29 Market Recap
Indices
- Dow 39,475 (new record close), +761 or +1.97%.
- Nasdaq 16,428 , +455 or +2.85%.
- MSCI EAFE 2351.57, +26.45 or +1.14%.
- S&P 5,234 (new record close), +117 or +2.29%.
- USD10Y 4.218%, -8.6bp or -2.00%.
- WTI Crude $80.81 bbl, -$0.20 or -0.25%.
Record Closes & Benign Inflation Data
Despite the short week, there was plenty of economic data to spur the markets higher and set new closing records on the Dow and the S&P 500; initial jobless claims were roughly inline, the second revision of Q1 GDP was stronger than the original estimate, and most importantly, the Personal Consumption Expenditure, especially the Core figure, was better than expected.
This Week: April 1 – April 5
Despite a quiet earnings calendar, the week is chock full of economic data releases; March manufacturing and services data, February JOLTS, ADP Private Payrolls, and the big three, March Non-Farm Payrolls, March Unemployment, and March Average Hourly Earnings are all expected this week.
Economic Calendar
- Monday – March final U.S. S&P and ISM Manufacturing Surveys. Earnings: N/A
- Tuesday – February Job Openings and Labor Turnover Survey (JOLTS). Earnings: N/A.
- Wednesday – March ADP Private Payrolls, March final U.S. S&P and ISM Services Surveys. Earnings: N/A.
- Thursday – Initial Jobless Claims. Earnings: N/A.
- Friday – March Non-Farm Payrolls, Unemployment Rate, Average Hourly Earnings. Earnings: N/A.
If you know of any friends or family members who could benefit from our services and these types of communiques, we are accepting new clients and offer a complimentary one-hour review.
Last Week‘s Daily Trading Recap…
Monday – Dow -162 to 39,313, Nasdaq -44 to 16,384, S&P -16 to 5,218, USD10Y +3.2bp to 4.25%.
Tuesday – Dow -31 to 39,282, Nasdaq -69 to 16,315, S&P -15 to 5,203, USD10Y +1.6bp to 4.234%.
- Eight of eleven S&P sectors traded down today, led lower by Utilities, Energy, and Technology.
- February Durable Goods Orders were better than expected, +1.4% vs +1.0% expected and vs -6.9% last month.
- March Consumer Confidence was lower than expected at 104.7 vs 106.5 expected and vs 104.8 in February.
- Everyone’s favorite meme stock, GameStop (GME) reported a horrid quarter, missing their revenue estimates, announcing job cuts and trading down 17% in the extended session. The social media darling once hit an intraday high of $483/share (Jan 28, 2021) thanks to the Wall Street Bets Reddit community and effectively made insolvent the hedge fund Melvin Capital.
Wednesday – Dow +478 to 39,760, Nasdaq +84 to 16,399, S&P +45 to 5,248 (new record close), USD10Y -3.8bp to 4.196%.
- All eleven S&P sectors traded higher today, led by Utilities, Real Estate, and Industrials.
Thursday – Dow +47 to 39,807 (new record close), Nasdaq -16 to 16,379, S&P +5 to 5,254 (new record close), USD10Y +1.0bp to 4.206%.
- Eight of eleven S&P sectors traded higher today, led by Energy, Utilities, and Real Estate.
- Jobless claims fell to 210,000, vs 212,000 forecast and vs. last week’s slightly revised higher print of 212,000 (originally 210,000).
- Revised Q1 GDP was stronger at +3.4% vs +3.2% expected and vs the 1st revision of +3.2%.
Friday – Markets Closed in Observance of Good Friday.
- February Headline Personal Consumption Expenditure was slightly better than expected at +0.3% vs +0.4% and compared to last month’s +0.4% print. Year-over-year PCE now stands at +2.5%, up slightly from last month’s +2.4% figure.
- February Core PCE was in line at +0.3% and lower than last month’s +0.5% print. Year-over-year Core PCE now stands at +2.8% vs last month’s +2.9% figure.
If you know of any friends or family members who could benefit from our services and these types of communiques, we are accepting new clients and offer a complimentary one-hour review.
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, Cardano, Chainlink, Ethereum, ACHR, AVGO, BITB, ETHE and GBTC.