There was a good deal of divergence this week as higher bond yields on a hotter-than-expected reading on manufacturing activity slammed the economically sensitive Dow Jones Industrial Average , while an incredible quarter from Nvidia powered the Nasdaq . The S & P 500 , which leans more tech than the Dow and less tech than the Nasdaq, was stuck in the middle. At the S & P 500 sector level, only information technology and communication services finished higher on the week. Tech gained more than 3% — again, thank you Nvidia. On the flip side, energy led to the downside, sinking nearly 4% on the week. Our sole oil and natural gas play, Coterra Energy , was down accordingly. In addition to Nvidia, which was the star of the show, Club names Palo Alto Networks and TJX Companies also reported earnings this week. All three put up solid reports — despite the initial reaction we saw in Palo Alto Networks. Shares of the cybersecurity stock actually finished the week higher. More broadly, 96% of S & P 500 companies have delivered their financials for their latest quarters. According to data compiled by FactSet, 78% of them saw positive earnings surprises and 61% had positive sales surprises. Looking ahead, four more Club names — Salesforce, Best Buy, Foot Locker and Costco — are on next week’s earnings schedule. That makes next month’s quarterly release from Broadcom the final portfolio report of the earnings season. After a slow week and worries about inflation, we get the Fed’s favorite indicator of price pressures — the personal consumption expenditures (PCE) price index. Economy The April personal spending and income data, out on Friday, will garner the most attention because it contains the core PCE price index. With some heightened concerns about inflation still driving much of the day-to-day action, we’re looking for the rate of inflation to keep tracking lower. The consensus estimate per FactSet is for a 2.7% year-over-year increase at the headline PCE level and for 2.8% year-over-year increase on the core PCE — both would be in line with what we saw in March. Thursday brings the second read of three on first quarter 2024 gross domestic product (GDP). While an important indicator of broad U.S. economic activity, it’s also important to be mindful that we are already two months into the second quarter. That means investors will probably pay closer attention to more recent data, such as the aforementioned core PCE and earnings. April pending home…
Click Here to Read the Full Original Article at Top News and Analysis (pro)…
