Money Watch Weekly Wrap
Investors shook off S&P's possible downgrade of US debt, focused on better than expected corporate earnings and bought stocks during the holiday-shortened week. Further gains may be harder, according to professional money managers. The Barron's "Big Money poll," which surveys US money managers, found that 60% are bullish on the stock market through the end of the year. But, the majority expects gains of another 5% this year. Only 11% were bearish on stocks, down from 15% last fall.
- DJIA: 12,505, up 1.3% on week, up 8% YTD (highest since June 2008)
- S&P 500: 1337, up 1.3% on week, up 6.3% YTD (highest since Feb 18)
- NASDAQ: 2820, up 2% on week, up 6.3% YTD
- June Crude Oil: $112.29, up 1.9% on week
- June Gold: $1503.80, up 1.2% on week (a nominal record-inflation-adjusted = $2400/ounce)
- May Silver: $46.06 (+49% this year and over 155% in the last 52 weeks)
- AAA National Average Price for Gallon of Regular Gas: $3.86 (Record $4.11 in July, 2008)
FACTOIDS OF THE WEEK: Corporate earnings edition (source: Thomson Reuters)
Of the 137 companies in the Standard & Poor's 500 that have reported Q1 results:
- 75% have beaten profit forecasts-better than the 17-year average of 62%
- 14% have missed forecasts
- Profits are coming in 8% higher than analysts expected
- 69% beat revenue expectations -- sales have been 2% better than forecast
- In the "you might have missed it category": The Consumerist held the annual "Worst Company of the Year" - see how your most-hated entity did in the competition!
Consumer Confidence is likely to be shaky, as gas prices hover near $4/gallon. There will also be housing data-new home sales and the S&P Case-Shiller Hope Price Index. While existing home sales came in better than expected last week, few would consider the housing market healthy yet. 11.1 million Americans with mortgages, or 23% of the total, are underwater, according to CoreLogic.
Mon 4/25:
Kimberly Clark
10:00 New Home Sales
Tues 4/26:
Coca-Cola, Ford, Amazon
9:00 Case-Shiller Home Price Index
10:00 Consumer Confidence
Weds 4/27:
Boeing, eBay, Starbux
8:30 Durable Goods Orders
Thurs 4/28:
Colgate, Exxon Mobil, Pepsi, P&G
8:30 Weekly Claims
8:30 GDP (Q1 Advanced expected to be 2%, from Q4's 3.1%)
10:00 Pending Home Sales
Fri 4/29:
8:30 Personal Income and Spending
9:45 Chicago PMI
9:55 Consumer Sentiment
