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WEEKLY MARKET UPDATE
– PREVIOUS WEEK RE-CAP: (4/29 – 5/3)
Monday (4/29) – Stocks extended a rally with the S&P 500 ending at an all-time high as growth-oriented stocks like energy and technology lead the way.
(S&P 500 +0.7%)
Tuesday (4/30) – Stocks closed with slight gains, with the S&P 500 ending at another all-time closing high on a rally in Apple and encouraging economic data.
(S&P 500 +0.2%)
Wednesday (5/1) – Stocks fell sharply as the latest economic data on the jobs & manufacturing fronts continued a trend of indicators pointing to anemic growth, while bellwether companies disappointed on revenue.
(S&P 500 -0.9%)
Thursday (5/2) – Stocks closed higher, led by tech shares, after weekly jobless claims figures pointed to improving labor market conditions a day before the closely watched monthly payroll report.
(S&P 500 +0.9%)
Friday (5/3) – The Dow and S&P 500 advanced to all-time closing highs, with major indexes jumping 1 percent after an unexpectedly strong April jobs report eased concerns about an economic slowdown.
(S&P 500 +1.1%)
For the previous week, Dow closed up 1.8%, the S&P gained 2.0% and the Nasdaq added 3.0%
To begin the current week, the S&P 500 is up approx. 13.2% in the year-to-date period.
– Technical Update: In the latest week, the S&P 500 set a new all time high finishing above 1,600 for the first time in history. After rebounding off the 1,540 support level two weeks ago, following the sell-off in Gold and Boston bombings, the S&P has moved steadily higher with the Index finally breaching the 1,600 level this past Friday. Looking ahead, chart watchers and the electronic program trading community will most likely maintain a bullish bias on equities as long as we remain above the market’s 1,570 – 1,575 support band. However, a pullback below this range could trigger a heavy round of short-term technical sell pressure.
Key Technical Levels (S&P 500):
On the upside (resistance) – 1,615 (new all-time intra-day high)
On the downside (support) – 1,600, 1,570 – 1,575, 1,550, 1,540 & 1,525-1,530 are the next major marks in range on the charts.
* 50-day moving avg. = 1,560 & 200-day moving avg. = 1,477
– Economic Data: We are scheduled for a light week on the economic data front, highlighted by Tuesday’s Consumer Credit Report; Thursday’s Weekly Jobless Claims Data & Wholesale Inventories and Friday’s Treasury Budget. See below for full list of weekly economic reports.
– Corporate Earnings: Corporate earnings continue at slightly less aggressive pace this week with 46 S&P 500 companies scheduled to report. As of 5/3/13, of the 395 companies in the S&P 500 that have reported earnings to date for Q1 2013, 68% have reported earnings above analyst expectations. This is higher than the long-term average of 63% and higher than the average over the past four quarters of 67%. On the revenue front, 46% of companies have reported Q1 2013 revenue above analyst expectations. This is significantly lower than the long-term average of 62% and lower than the average over the past four quarters of 52%. See below for full list of corporate earnings reports.
– Crude Oil: To begin the week, NYMEX WTI Crude Oil is trading around the $95.00 a barrel level & Brent Crude is trading near $104.00 a barrel. In the 2013 YTD period, NYMEX WTI Crude Oil is up 2% while Brent Crude is down over 3%.
MAIN EVENTS OF THE UPCOMING WEEK: (5/6 – 5/10)
– The Federal Reserve’s Senior Loan Officer Survey, which provides a comprehensive picture of commercial-bank loans, is released.
– Sysco Corporation Earnings – BMO
– Tyson Foods Inc Earnings – BMO
– First Solar Inc Earnings – AMC
– Vornado Realty Trust Earnings – AMC
– 3:00 PM ET – Consumer Credit – Mar – Expectations = 16.3B
– German and French finance ministers and central bankers meet in Berlin.
– Direct TV Earnings – BMO
– Emerson Electric Earnings – BMO
– CH Robinson Worldwide Inc Earnings – AMC
– Walt Disney Company Earnings – AMC
– Electric Arts Earnings – AMC
– Marathon Oil Corp Earnings – AMC
– Whole Foods Earnings – AMC
– Bank of England holds monetary-policy committee meeting ahead of an interest-rate decision expected Thursday.
– Cognizant Tech Solutions CP Earnings – BMO
– News Corp Earnings – AMC
– 8:30 AM ET – Weekly Jobless Claims – Expectations = 336K
– 10:00 AM ET – Wholesale Inventories – Mar – Expectations = 0.3%
– IMF Managing Director Christine Lagarde is scheduled to speak at the Global Investment Conference in London.
– Several Fed presidents speak across the country. Charles Plosser, president of the Philadelphia Fed, talks on monetary policy at Simon School of Business financial conference in New York.
– Cablevision Systems Corp Earnings – BMO
– Dean Foods Co Earnings – BMO
– Priceline.Com Earnings – AMC
– 2:00 PM ET – Treasury Budget – Apr – Prior = +59.1B
– Fed Chairman Ben Bernanke gives the keynote address at the Bank of Chicago conference.
– Finance ministers and central governors from the G-7 countries, which include the U.S., Canada, and Germany, meet in London.