Investing Hot Sheet

by | May 12, 2024 | Investing Hotsheet

The Hot List

1. Inflation

The April Producer Price Index – PPI – will be released on Tuesday with Consumer Price Index – CPI – on Wednesday.

2. Employment

Initial jobless claims were the weakest in eight months as labor market is showing cracks.

3. Economy

The Retail Sales Report for April will be released giving investors insight into the strength of the consumer.

4. Earnings

Major retailers Wal-Mart and Home Depot highlight a big week of earnings.

5. Geopolitical

The situation in Gaza remains horrible. Here is a link to the live updates on the latest.

Last Week

Monday: S&P 500 +52.95 (+1.03%)  to 5180.74. No economic releases.

Tuesday: S&P 500 +6.96 (+0.13%) to 5187.70. March Consumer Credit $6.3B (vs. $15.3B expected).

Wednesday: S&P 500 -0.03 (-0.00%) to 5187.67. MBA Mortgage Applications Index +2.6% (vs. (-2.3% prior).

Thursday: S&P 500 +26.41 (+0.51%) to 5214.08. Initial jobless claims 231K (vs. 213K expected).

Friday: S&P 500 +8.60 (+0.16%) to 5222.68. Univ. of Mich Consumer Confidence 67.4 (vs. 76.5 expected).

S&P 500 [S&P] Technical Look

Potential Support: If the index can’t hold the all-time highs of 5240, look for additional support at the 50-day moving average around 5125. 

Potential Resistance: If the index holds 5240 then it will be back in unchartered waters with no clear resistance in sight.

Bright Ideas

Growth

Small Caps

Technology

Materials

Healthcare 

My Take

The S&P got back to all-time highs last week in a relatively quiet week. With a lack of major catalysts, the recent upward momentum continued to carry stocks higher.

Investors are becoming more optimistic about the inflation fight after the weaker than expected jobs report a couple weeks ago. Last week’s initial jobless claims report only helped strengthen that thesis with the weakest report in eight months.

In a technical week, it was fitting that the S&P closed right at the recent all-time highs near 5240. Now we will see if that level will serve as support or resistance going forward.

Which way stocks go will likely be dictated by the upcoming inflation reports – CPI and PPI. Inflation remains enemy number one. If these numbers come in cooler than expected, then we could really see a breakout. However, if they go the opposite direction, we will likely have a really volatile week.

In addition to inflation, we will get some clarity on the strength of the consumer with April Retail Sales, as well as Wal-Mart and Home Depot earnings. Expect those to carry some of the headlines if there are any surprises.

In the meantime, it feels like stocks are really wanting to break out. Now let’s just hope these inflation reports are favorable.

If you need help or have any questions, please contact me today.

Until next time,

Clint Kirby

Chief Financial Strategist

Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

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