Art Hogan’s Week In Review – April 26, 2019

April 26, 2019

Week in Review

The market closed higher for the week with the S&P 500 and Nasdaq Composite at record highs as better-than-expected economic data combined with a busy week of better than feared earnings. The S&P 500 had spent the past few weeks treading water at or about 2900 until this week when the news flow proved to be good enough to break above the old highs. While there were plenty of one off earnings disasters, the majority of companies have been able to beat their expectations. The S&P 500 and Nasdaq posted solid gains this week after more than 140 companies released their quarterly reports. The two indexes gained 1.2% and 1.9%, respectively. The Dow, meanwhile, posted a slight weekly loss.

Highlights for the week:

We have reached the half-way point of the earnings season as 228 S&P 500 companies have reported 1Q19. 78% beating EPS estimates on +6.92% growth. 61% topping sales estimates on +3.95% growth.

3M went down 13% post reporting earnings, its worst decline since Black Monday in 1987. Revenues were down 5% YoY, slowest growth since 2015.

Merger talks between German Lenders Deutsche Bank and Commerzbank have ended as both parties apparently decided it would not be wise to tie two rocks together and see if they can float.

First quarter GDP rose 3.2%, topping the consensus economist estimate of 2.5%. An increase in exports, and a larger than anticipated inventory build drove the increase.

S&P 500 & Nasdaq set new all-time highs, as all of the Q4 drawdown were recovered;

Ford Motor, meanwhile, jumped 10.7% — posting its biggest gain since 2009 — after issuing better-than-forecast quarterly numbers, which were driven by strong truck and SUV sales in North America

Earnings for the week of 4-29:

The deluge of earnings continues next week as 153 S&P 500 companies are scheduled to report first quarter results.

 

The views and opinions expressed herein are those of the analyst Arthur Hogan and are current as of this report’s posting date. This commentary is general in nature and should not be construed as investment advice. Opinions are subject to change with market conditions. Neither Art Hogan nor National Securities Corporation is affiliated with the issuers mentioned herein, and no part of this analyst’s compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by the analyst in the report. The views & and strategies may not be suitable for all investors and is are not intended to be relied on for legal or tax advice. Please note that any investment involves risk including loss of principal.