Week in Review for the week ending May 10th
This past week has shown us some promising movements in the U.S. stock markets. For the third consecutive week, key indexes have climbed, pushing us excitingly close to the record highs we saw before the April retreat. The S&P 500 rose by an impressive 2%, while the NASDAQ wasn't far behind with a 1% increase per Fact Set. This resilience as earnings season wraps up is certainly a welcome sight.
As we look back at April, it's interesting to note that analysts have raised their earnings-per-share estimates for the second quarter by 0.7%, as reported by FactSet. This is a positive sign that could speak to underlying strength in corporate performance.
However, new filings for unemployment benefits have surged to their highest level in more than eight months. This last week saw about 231,000 claims, a significant jump from 209,000 the previous week. This uptick aligns with a broader slowdown in U.S. job growth. Interestingly, this news of softness in the job market, has raised investors' hopes that the Federal Reserve might consider lowering interest rates, resulting in some of the market recovery we saw this past week.
Looking Ahead
As we venture into next week, there are several key economic indicators to keep an eye on:
Producer Price Index (PPI): provides insight into the average change over time in the selling prices received by domestic producers for their output. It's a good gauge of inflation at the wholesale level.
Consumer Price Index (CPI): measures the average change over time in the prices paid by consumers for a basket of consumer goods and services. This month’s report is especially crucial as it will reveal if the trend of hotter-than-expected inflation persisted into April. Remember, March's report showed an annual inflation rate of 3.5%, up from February's 3.2%.
Weekly Unemployment Claims: We'll get another update on this from the U.S. Department of Labor. Given the recent rise, it will be important to see if this is a temporary blip or the start trend.
Regulatory Update
The SEC is set to implement rule amendments starting May 28, reducing the time between the trade and settlement dates from two business days (T+2) to just one (T+1). This will allow investors to receive payment faster after selling a security, reflecting a continuation of the trend toward quicker settlements—historically, the SEC moved from T+5 to T+3 in 1993 and from T+3 to T+2 in 2017.
As always, if you have any concerns or questions about how these developments might impact your financial strategy, don't hesitate to reach out. I'm here to help you navigate these uncertain times, whether by phone or email.
Stay tuned, and take care until next week’s update!
Jeremy Raffer, MBA
Financial Advisor
Author “Financial Planning for Widows”
m. 201-747-2705
e. jeremy.raffer@stewardpartners.com
Steward Partners Global Advisory, LLC
Country Club Plaza
115 W. Century Rd, Suite 145
Paramus, NJ 07652
The views expressed herein are those of the author and do not necessarily reflect the views of Steward Partners or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results
Keep in mind that individuals cannot invest directly in any index, and index performance does not include transaction costs or other fees, which will affect actual investment performance. Individual investor's results will vary. Past performance does not guarantee future results. Future investment performance cannot be guaranteed, investment yields will fluctuate with market conditions.
For index definitions click here
AdTrax 6618152.1 Exp 6/25