Weekly Economic Update for April 15, 2019

Dominic Nibbelink | Apr 22, 2019

In this week’s recap: stocks advance after earnings season gets off to an encouraging start, and consumer prices rise the most in more than a year.

Weekly Economic Update

Presented by Nancy Van De Berg, April 15, 2019

THE WEEK ON WALL STREET

Stocks broke out of a narrow range on Friday following news that two major banks grew their bottom line in the first quarter. For the week, the S&P 500 rose 0.79%; the Nasdaq Composite, 0.91%. The Dow Jones Industrial Average improved 0.50%. Turning to overseas stocks, the MSCI EAFE index declined 0.09%.1-4

The market spent much of the week in a lull as investors waited for earnings season to begin. Wall Street is paying close attention to both guidance and profit margins.

Big Banks Post Solid Results

Friday, Wells Fargo and JPMorgan Chase both reported Q1 profit growth, and JPMorgan Chase announced record revenue.5

This was welcomed news. Analysts have tempered some of their expectations entering this earnings season, recognizing that slowing global growth, tariffs, and dollar strength may be affecting corporate profits. (The dollar rallied 6.2% in Q1.)6

[Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities.]

Inflation Picks Up

The Consumer Price Index rose 0.4% in March, the most in 14 months. This matched the consensus forecast of economists polled by MarketWatch, who believed rising gas prices would affect the number.

Even with this March jump, annual inflation remained relatively tame at 1.9%.7

What’s Ahead

Note that U.S. stock and bond markets will be closed on Good Friday (April 19).

T I P O F T H E W E E K

Life insurance is not solely for people with spouses and kids. If you are a caregiver to an ill parent, have significant debt, or simply wish to avoid having others pay for your funeral, life insurance coverage could prove very important in the event of your passing.

THE WEEK AHEAD: KEY ECONOMIC DATA

Thursday: March retail sales.

Friday: March housing starts and building permits.

Source: Econoday / MarketWatch Calendar, April 12, 2019

The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision. The release of data may be delayed without notice for a variety of reasons.

THE WEEK AHEAD: COMPANIES REPORTING EARNINGS

Monday: Citigroup (C), Goldman Sachs (GS)

Tuesday: Bank of America (BAC), BlackRock (BLK), Comerica (CMA), IBM (IBM), Johnson & Johnson (JNJ), Netflix (NFLX), UnitedHealth Group (UNH)

Wednesday: Abbott Labs (ABT), Alcoa (AA), Bank of New York Mellon (BNY), Morgan Stanley (MS), PepsiCo (PEP), U.S. Bancorp (USB), United Rentals (URI)

Thursday: American Express (AMEX), Honeywell (HON), Manpower (MAN), Philip Morris (PM), Schlumberger (SLB), Travelers Companies (TRV), Union Pacific (UNP).

Source: Morningstar.com, April 12, 2019.

Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.

Q U O T E O F T H E W E E K

“To fly we have to have resistance.”

MAYA LIN

T H E W E E K L Y R I D D L E

Name two English words (longer than two letters) that both begin and end with the letters “he” (in that order).

LAST WEEK’S RIDDLE: What is the timepiece with the most moving parts? (It has been around for centuries.)

ANSWER: The hourglass.

Nancy Van De Berg may be reached at 507-283-9590 or nancy@mainstreetfinancial.net
https://mainstreetfinancialservices.advisorwebsite.com/

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CITATIONS:

1 - quotes.wsj.com/index/SPX [4/12/19]

2 - quotes.wsj.com/index/DJIA [4/12/19]

3 - quotes.wsj.com/index/COMP [4/12/19]

4 - quotes.wsj.com/index/XX/990300/historical-prices [4/12/19]

5 - cnn.com/2019/04/12/investing/wells-fargo-bank-earnings/index.html [4/12/19]

6 - tinyurl.com/y45wuftu [4/12/19]

7 - marketwatch.com/story/higher-gas-prices-boost-cost-of-living-in-march-but-inflation-still-soft-cpi-shows-2019-04-10 [4/10/19]

CHART CITATIONS:

quotes.wsj.com/index/SPX [4/12/19]

quotes.wsj.com/index/DJIA [4/12/19]

quotes.wsj.com/index/COMP [4/12/19]