PAS Weekly Commentary

Stocks Rebound as Earnings Season Ramps Up

The stock market exhibited some rebound action after a soft start to the month. It was a busy week, featuring earnings results from nearly 40% of the S&P 500 and some key economic releases.

The Dow Jones Industrial Average rose 0.7%, the S&P 500 gained 2.7%, and the Nasdaq Composite settled 4.2% higher this week. 

The upside bias was fueled by favorable responses to earnings from some influential names, calm price action in Treasuries, and carryover momentum as gains built up this week.

Broad buying activity left the equal-weighted S&P 500 up 1.6% this week and all 11 S&P 500 sectors finished higher. Mega cap gains had an outsized impact on index performance, though, and drove gains in the information technology (+5.1%), consumer discretionary (+3.5%), and communication services (+2.7%) sectors. 

Meta Platforms was an exception from the mega cap space, dropping 7.9% this week after reporting earnings. Microsoft, Alphabet, which hit a new all-time high, and Tesla gained 1.8%, 11.5%, and 14.4%, respectively, in response to their earnings news. 

The quarterly reports from some of the aforementioned names fueled positive buzz around AI, benefitting stocks in the chipmaker space. The PHLX Semiconductor Index (SOX) jumped 10% this week. 

Market participants were also digesting the Advance Q1 GDP report, which showed weaker growth and higher inflation, and the weekly jobless claims report, which showed ongoing strength in the labor market, and the March Personal Income and Spending report, which that showed solid spending activity, but stalled progress on inflation. 

Treasuries had a relatively calm response to the data, contributing to the upside bias in stocks. The 10-yr note yield was five basis points at 4.67% and the 2-yr note yield rose three basis points to 5.00%. 

  • S&P 500: +2.7% for the week / +6.9% YTD
  • Nasdaq Composite: +4.2% for the week / +6.1% YTD
  • S&P Midcap 400: +2.1% for the week / +4.1% YTD
  • Dow Jones Industrial Average: +0.7% for the week / +1.5% YTD
  • Russell 2000: +2.8% for the week / -1.2% YTD

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Past performance is not a guarantee of future results. Indices are unmanaged and one cannot invest directly in an index. Diversification does not guarantee investment returns and does not eliminate the risk of loss.

Data and rates used were indicative of market conditions as of the date shown and compiled by Briefing.com. Opinions, estimates, forecasts, and statements of financial market trends are based on current market conditions and are subject to change without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and do not constitute a solicitation, offer, or recommendation to purchase or sell a security. S&P 500 Index is a market index generally considered representative of the stock market as a whole. The index focuses on the large-cap segment of the U.S. equities market. Each company’s security affects the index in proportion to its market value. NASDAQ Composite Index is a market value-weighted index that measures all NASDAQ domestic and non-U.S. based common stocks listed on the NASDAQ stock market. Dow Jones Industrial Average is a widely used indicator of the overall condition of the stock market, a price-weighted average of 30 actively traded blue chip stocks, primarily industrials, but also includes financial, leisure and other service-oriented firms. Russell 2000 Index measures the performance of the smallest 2,000 companies in the Russell 3000 Index of the 3,000 largest U.S. companies in terms of market capitalization. MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets.

Park Avenue Securities LLC (PAS) is a wholly owned subsidiary of The Guardian Life Insurance Company of America (Guardian). PAS is a registered broker/dealer offering competitive investment products, as well as a registered investment advisor offering financial planning and investment advisory services. PAS is a member of FINRA and SIPC.

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2024-173914 (Exp. 7/24)

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