Weekly market recap

• For the week, the $Nasdaq Composite Index(.IXIC.US)$dropped 1.51%, the $S&P 500 index(.SPX.US)$gained 1.23%, and the $Dow Jones Industrial Average(.DJI.US)$ grew 2.67%, hitting new highs.

• Morgan Stanley: Investos should allocate more defensive balance
  

The late-week optimism came despite a far-weaker-than-expected April jobs report, which showed that U.S. employers added 266,000 net payrollslast month. Economists polled by Dow Jones had expected 1 million additions.

Traders appear to have already priced a robust economic reopening. Any news that could threaten that narrative could quickly impact cash allocations.

We' re watching expectations vs reality with the market now well priced for reopening. On a cumulative basis, retail sales are above where they would have been on pre-crisis trends – suggesting some expectations risk around the pent up demand narrative. The labor market has less slack than is typical at this point in the cycle. We recommend moving up the quality curve and adding more defensive balance as the market shifts toward mid-cycle leadership.

-Mike Wilson, chief US equity strategist at Morgan Stanley

• Ultimate impact on pipeline cyberattack remains unclear 
  

A ransomware attack forced the closure of the largest U.S. fuel pipelineover the weekend. Colonial Pipeline, which operates a 5,500-mile system, said it was forced to halt the transport of fuel from the Gulf Coast to the New York metro area on Friday as it took certain systems offline to contain the threat.

The ultimate impact of the attack on fuel prices remains unclear, and analysts say the length of the shutdown will have the greatest impact. 

Here's a look at the returns of S&P 500 sectors.

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. 

Earnings are expected from a diverse group of companies, from$Coupang Inc(CPNG.US)$to $Alibaba Group Holding Ltd(BABA.US)$. 

• $Alibaba Group Holding Ltd(BABA.US)$, a Chinese multinational technology company specializing in e-commerce, retail, Internet, and technology, is to release earnings this Thursday. Analysts hold very positive view on the company's performance this quarter.

  Digitalization trend in China will sustain AliCloud' s growth potential. Gradual margin expansion will be a long-term profit driver. We see limited near-term catalysts but F22e P/E valuation remains attractive. 
  

Heightened investments in Taobao Deal and Grocery for user acquisition in less-affluent regions in China, should support long-term growth in core e-commerce business. Merchants'  marketing budgets will continue to shift online given rising reliance on e-commerce and better conversion.

-Gary Yu, equity analyst at Morgan Stanley

• $Walt Disney Company(DIS.US)$, the world' s leading producers and providers of entertainment and information, is expected to report its fiscal second-quarter earnings this Thursday.

  Disney is building content assets that enable it to take advantage of the significant direct-to-consumer streaming opportunity ahead. Disney' s underlying IP remains best-in-class, supporting long-term content monetization opportunities.

  During this period of FCF pressure from Parks closures, ESPN' s FCF generation is key to driving down leverage. Historical cycles suggest a potential return to above prior peak US Parks revenues in FY23, according to Morgan Stanley analyst Benjamin Swinburne.

• $Bilibili(BILI.US)$, an iconic brand and a leading video community for young generations in China, is to report its first quarter 2021 unaudited financial results on Thursday.

  According to Zacks, Bilibili is expected to post quarterly loss of $0.36 per share in its upcoming report, which represents a year-over-year change of -80%. Revenues are expected to be $566.07 million, up 73.1% from the year-ago quarter.