The Week on Wall Street
Stock prices ended the week slightly lower, despite
news of positive results from a test trial of a COVID-19 drug treatment and several states easing
their economic lockdowns.
The Dow Jones Industrial Average slipped 0.22%, while the
Standard & Poor's 500 lost 0.21%. The Nasdaq Composite Index dropped 0.34%. The MSCI EAFE Index,
which tracks developed stock markets overseas, rose 4.34%.[1][2][3]
Light at the End of the Tunnel?
Investors were emboldened last week by two
significant developments: a quickening in the pace of state re-openings and positive results from a
clinical trial of pandemic treatment. These developments turned investor focus toward economic
normalization and away from the economic destruction that has occurred.
Market optimism was
also supported by earnings reports early in the week, which showed that some companies were navigating
reasonably well through the crisis. But stocks retreated on Friday as traders reacted to mixed
earnings from two tech titans. The two firms offered a reminder that even the strongest companies have
not escaped the economic impact of the pandemic.
Worries over possible new China trade
tariffs also weighed on stocks as the trading week came to a close.
Corporate
Earnings
It was a busy week for corporate earnings reports. So far, the earnings
season has been mixed; it has provided some clarity, though, about the impact of COVID-19 on
businesses.
With 193 of S&P 500 companies reporting, 65% have checked in with results
ahead of consensus Wall Street estimates. Among the better-performing sectors to date were Technology
and Consumer Staples. Financials were among the laggards.[4][5][6]
Final
Thought
Despite the continued shutdown of businesses nationwide, stocks staged a
powerful rebound in April, leading some to wonder if Wall Street is disconnected from Main Street. But
market watchers are quick to point out that Main Street may not be as disconnected as it appears.
April's rally was led by a group of very large companies, with over 75% of stocks in the S&P 500
trading below their 200-day moving average.[7]
THIS WEEK: KEY ECONOMIC
DATA
Monday: Factory Orders.
Wednesday:
Automatic Data Processing (ADP) Employment Report.
Thursday: Jobless Claims.
Friday: Employment Situation Report.
Source: Econoday, May 1,
2020
The Econoday economic calendar lists upcoming U.S. economic data releases
(including key economic indicators), Federal Reserve policy meetings, and speaking engagements of
Federal Reserve officials. 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.
THIS WEEK:
COMPANIES REPORTING EARNINGS
Monday: Skyworks Solutions (SWKS), Tyson
Foods (TSN)
Tuesday: Walt Disney (DIS), Electronic Arts (EA), Prudential
Financial (PRU), Illinois Tool Works (ITW), Sysco (SYY)
Wednesday: Square (SQ),
CVS Health (CVS), General Motors (GM), Shopify (SHOP), T-Mobile (TMUS)
Thursday: Bristol-Myers (BMY), Anheuser-Busch (BUD), Becton Dickinson (BDX),
Danaher Corp. (DHR)
Source: Zacks, May 1, 2020
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The Wall Street Journal, May 1, 2020
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The Wall Street Journal, May 1, 2020
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The Wall Street Journal, May 1, 2020
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NASDAQ, April 30, 2020
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NASDAQ, April 30, 2020
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NASDAQ, April 30, 2020
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Index Indicators, May 1, 2020