Market Drama

Featuring Zoe CEO & Founder, Andres Garcia-Amaya, CFA

May 13, 2024 

Watch Time: 3 minutes

  • Welcome to this week’s Market Drama!

Stock Market Updates:

  • The S&P 500 was up 1.9% for the week, up 9.5% for the year, less than 1% from its record highs (3rd consecutive week where we see gains for the S&P)
  • Nasdaq was up 1.1% for the week, up 8.9% for the year.
  • Earnings are driving market action:
      • 92% of S&P 500 companies have reported for Q1 2024.
      • The blended YoY earnings growth is 5.4%. It will mark the highest YoY earnings growth since Q2 2022 if maintained. 
      • Strong earnings and beating expectations: positive surprises in the number of companies and the magnitude of earnings, well above their ten-year average.  

Economic Updates: 

    • The economy is slowing: we see this on the advanced estimate of Q1 GDP, purchasing managers index, the PMI index, April’s job numbers, and last week’s jobless claims all indicate that the economic growth is slowing down.
      • The economy was growing above its potential GDP, so some slowing down will help bring inflation down. As something that the Fed is focused on, this could help them lower interest rates. 

Coming up next week:

  • CPI inflation data: the market’s looking for a decline from 3.5% YoY to 3.4%.
    • Core CPI (excludes food & energy): the market’s looking for a tick down from 3.8% to 3.6%.
  • Retail sales data: a good indication of how the consumer is faring.

Stay tuned for next week.

– Andres

Disclosure: This material provided by Zoe Financial is for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Nothing in these materials is intended to serve as personalized tax and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Zoe Financial is not an accounting firm- clients and prospective clients should consult with their tax professional regarding their specific tax situation. Opinions expressed by Zoe Financial are based on economic or market conditions at the time this material was written. Economies and markets fluctuate. Actual economic or market events may turn out differently than anticipated. Facts presented have been obtained from sources believed to be reliable. Zoe Financial, however, cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. 

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