From the desks of Stanley Katz & Lauren Madera
STAY SAFE & HAVE FUN!
Were those tremors you felt this past week from the US stock market or the quakes that hit New York and Taiwan? All three major US stock market indices posted losses (i.e., DJIA: -2.27%, S&P 500: -0.95%, Nasdaq: -0.80%). Another earth-shaking moment came on Friday from another employment increase, which dropped the unemployment rate to 3.8%. The implications of these statistics weigh heavy on the minds of US stock market investors anticipating a Fed interest rate cut. With the economy chugging along, some Fed representatives have stated there may be no rate cuts this year—quite the contrast to analysts’ prognostications back in December and January of six cuts! Click the link below to Schwab’s Weekly Trader’s Outlook, “Volatile Week for Stocks as Markets Adjust Rate Cut Expectations.”
First quarter earnings announcements begin next week. If the economy is truly decelerating, then it may be tough for companies to beat expectations. Currently, the S&P 500 trades at 20X forward projected 12-months earnings and 23.6X trailing earnings. Analyst’s forward earnings guidance may be a key input to determine if the stock market climb can persist. Read the Argus Economic Commentary, “Solid 1Q Leads into 2Q Uncertainty,” for additional insight.
Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.
Schwab:
Argus:
PIMCO:
Goldman Sachs:
Janus Henderson:
Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500
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