By Chloe
Weekly market recap
For the week, the $Nasdaq Composite Index(.IXIC.US)$ dropped by 0.25%, the $S&P 500 index(.SPX.US)$ also decreased by 0.13%, and the $Dow Jones Industrial Average(.DJI.US)$ cut 0.46%.
Fiscal relief, rising vaccination rates and fewer restrictions provide a larger tailwind for economic activity
News of the U.S. economy’s accelerating pace of recovery may prove a highlight this coming week, with data likely to show output approaching its pre-pandemic level just as the Federal Reserve delivers its third policy decision of the year.
BE expects the Fed policy statement to acknowledge continued acceleration in the economic recovery, but communications -- including the post-meeting press conference -- will stop well short of providing further guidance on the conditions which would warrant a tapering of QE.
-Bloomberg Economics
Price hikes are ahead, big brands lift prices
Inflation is coming. Look no further than Coca-Cola and P&G sharing plans this week to raise prices to offset rising commodity costs. The costs of raw materials, ranging from lumber to resin, are surging, so companies are taking steps to protect profits. Most retailers will pass on the higher costs to consumers, who might not even notice the difference because of the savvy methods deployed by these companies.
The pandemic has also given consumer giants more pricing power because consumers have put their trust in big brands and have a little more cash in their pockets.
Here's a look at the returns of S&P 500 sectors.
Source: jhinvestments
The week ahead in focus
Here are the most anticipated earnings releases, IPOs and economic events for the week ahead.
A handful of notable companies report results this week.
Technology stocks have been less than stellar performers this year, with a number of last year’s leaders struggling to find traction in an environment that made the previously-shunned cyclical/value stocks more attractive. Members of the FAANG group is to release financial results this week. We can understand how they performed in Q1 very soon.
$Apple Inc(AAPL.US)$, one of the Big Five companies in the U.S. information technology industry, is to hand in its quarterly results this Wednesday.
Though Apple shares have nearly doubled in the past year, Morgan Stanley’s analyst anticipates that the company will remain aggressive with its buybacks and predicts that the company could add $60 billion to its buyback authorization this quarter, compared with the $50 billion increase that Apple approved a year ago.
Analysts tracked by FactSet expect that Apple earned 98 cents a share in Q1, up from 64 cents a year earlier.
Source: Bloomberg, CNBC, WSJ
Comment(4)
sounds like they are still trying to get there ducks
in line
Thanks
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