Stocks meandered around a flatline in a busy week of corporate earnings, ending the trading week slightly higher.
The Standard & Poor’s 500 was flat (+0.02%), while the Dow Jones Industrial Average slid 0.50%. The Nasdaq Composite index surrendered 0.39%. The MSCI EAFE index, which tracks developed overseas stock markets, rose 0.18%.1,2,3
I remain bullish on stocks, but I also see some danger that if President Biden's infrastructure plan is watered down too much it will not provide the stimulus that some earnings expectations have already built in. The disappointment could be a drag on prices.
Though the S&P 500 and Nasdaq established new record highs at the start of the week, stocks struggled to find traction as the week wore on.4
Investor sentiment was dampened by rising COVID-19 infections in India and Japan, along with mounting inflation worries. Stocks finally caught some lift from strong quarterly reports issued by two big technology companies and an upbeat first-quarter Gross Domestic Product growth number, sending the S&P 500 to a fresh record high.5
Once again, though, stocks failed to follow through, as the market retreated in the final day of trading to close near where it began the week.
Earnings Top Expectations
Last week was the biggest week of the first quarter’s earnings season with a third of S&P 500 companies reporting, including six of the largest companies.6
With expectations high, businesses generally topped Wall Street analysts’ estimates; Big Tech companies posted especially noteworthy earnings. Coming into last Friday, with 40% of S&P 500 index companies reporting, earnings-per-share growth (EPS) is now estimated to be 29.3%, well ahead of the 12.2% EPS growth rate that analysts had expected at the start of the year.7
This Week: Key Economic Data
Tuesday: Factory Orders.
Wednesday: ADP (Automated Data Processing) Employment Report. ISM (Institute for Supply Management) Services Index.
Thursday: Jobless Claims.
Friday: Employment Situation Report.
Source: Econoday, April 30, 2021
This Week: Companies Reporting Earnings
Tuesday: CVS Health Corporation (CVS), Pfizer, Inc. (PFE), Dominion Energy (D), Prudential Financial (PRU).
Wednesday: Paypal Holdings (PYPL), General Motors (GM), Twilio, Inc. (TWLO), Etsy, Inc. (ETSY), Cognizant Technologies (CTSH).
Thursday: Square, Inc. (SQ), Roku, Inc. (ROKU), Albemarle Corporation (ALB), Regeneron Pharmaceuticals, Inc. (REGN), Booking Holdings (BKNG), Expedia Group (EXPE), Kellogg Company (K).
Friday: Berkshire Hathaway (BRK.A), EOG Resources (EOG), Cigna Corporation (CI), Draftkings, Inc. (DKNG).
Source: Zacks, April 30, 2021
“The secret of happiness isn't found in seeking more, but in developing the capacity to enjoy less.”
Errors to Avoid When Filing Your Extended Tax Return
If you filed an extension on your tax return, it's important to avoid some common errors to ensure your return is processed as quickly as possible. Avoiding these mistakes will help you ensure that your tax return is complete and accurate:
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov8
A Beginner's Guide to Juicing
Juicing is an amazing way to get some extra fruits and veggies into your diet, especially on those busy days when you can't seem to find time to make a nutritious meal. Plus, it's easy to get started and start reaping the many benefits.
First, decide what kind of juicer you want. The two most common types of juicers are masticating and centrifugal juicers. Masticating juicers "chew" the food and move slower. It takes more time to prepare the produce for masticating juicers because they can only juice small pieces, but you retain more of the nutrients. Centrifugal juicers are a little more affordable and juice with a spinning disk. You don't have to prep the produce as much, but the juice also doesn't retain as many nutrients.
Next, you need to decide what to juice. You'll learn which fruits and veggies have the most juice and what choices combine well with others, but to get you started, here are some simple recipes:
You can also add a little ginger, turmeric, or even garlic to give your juice extra flavor and kick.
Tip adapted from Live Simply Natural9
Forward I am heavy, but backward I am not. What am I?
Last week’s riddle: A certain month can begin on a Friday and end on a Friday as well. What month is it? Answer: February. In order for a month to start and end with the same day of the week, it has to have a complete number of weeks and have one more day. The only possible month is February which has 29 days in a leap year.
The Narrows, Zion National Park, Utah.
Footnotes and Sources
2. The Wall Street Journal, April 30, 2021
3. The Wall Street Journal, April 30, 2021
4. CNBC, April 26, 2021
5. The Wall Street Journal, April 29, 2021
6. MarketWatch, April 25, 2021
7. The Earnings Scout, April 30, 2021
8. IRS.gov, February 26, 2021
9. Livesimplynatural.com, April 18, 2019
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Weekly Market Insights: Earnings Season Crests Some Expectations
May 04, 2021