Art Hogan’s Week in Review – April 12, 2019
Week in Review
We had a week replete with catalysts that in another time might have moved the markets more aggressively. Having come into the week on the heels of a strong equity performance over the previous ten trading days, the markets in general coasted in a wait-and-see mode, waiting for Fridays kick-off of the Q1 earnings season. The Dow Jones Industrials underperformed the S&P 500 and Nasdaq for the week due in large part to the ongoing drag of Boeing. Friday saw the Dow Jones Industrials rally 269 points, but closed the week off 12 points or 0.04%. The S&P 500 was up 16 points or 0.55% for the week while the Nasdaq added 46 points or 0.57%. We enter the Q1 EPS season with the S&P 500 trading at 17.06x 2019 earnings estimates.
Highlights for the Week:
- The International Monetary Fund lowered its global growth outlook to the lowest level since 2009.
- The Trump Administration threatened tariffs on the European Union.
- The Minutes of the last Fed meeting show- “A majority of participants expected that the evolution of the economic outlook and risks to the outlook would likely warrant leaving the target range unchanged for the remainder of the year.”
- The weekly Initial Jobless Claims were a news maker coming in at 196k vs and estimate of 210k. That would be the lowest weekly print going back to 1969.
- Disney unveils Disney+ streaming service, stock breaks out of 5 years of overhead resistance to new high.
- JP Morgan & Wells Fargo report better than expected Q1 earnings to start the earnings season.
Earnings for the week of 4-15:
Citi, Goldman, Schwab, B of A, BlackRock, J&J, UNH, IBM Netflix, CSX, United, Abbott Labs, Morgan Stanley, USBancorp. Bank of NY Mellon, PepsiCo, Danaher, Taiwan Semi, Honeywell, Travelers, UNP, BB&T, Blackstone, SunTrust, KeyCorp, Regions Financial, AmEx