Last Week:

  • U.S. equities finished positive for the week: Last week, the Dow Jones Industrial Average (Dow) gained 427 points, or rose 1.79%, to 24,360. The Standard & Poor’s (S&P500) index gained 52 points, or rose 1.99%, to 2,656. The Nasdaq closed 2.77% higher at 7,107, while the 10-year Treasury ended the week at 2.83%.
  • Volatility Returns: Over the last several weeks, we have seen an upswing in market volatility largely attributed to concerns around continued Fed tightening and higher than expected inflation. Since the beginning of March, we have seen the Dow move 100+ points in 22 of the last 30 trading days, with an average intraday swing of over 400 points. Over this same time period, the Dow is only down 3%. As we process these market moves, it is important to keep in mind that 2017 was a highly unusual year for volatility, with the S&P500 going 15 straight months without a single negative return. As investors adjust to increased uncertainty around interest rates and inflation, we continue to expect markets to remain volatile.
Source: Factset Research Systems

Look Ahead:

  • First quarter earnings season will be in full swing this week with a number of banks/financial institutions and industrials reporting. Notable reporters include, Johnson & Johnson, UnitedHealth, U.S. Bancorp, BB&T, Philip Morris, Genuine Parts, Honeywell, Procter & Gamble and Schlumberger among others. On the economic calendar, U.S. retail sales will get the week started on Monday, with China’s first quarter Gross Domestic Product (GDP) and March data out late Monday/Tuesday morning. We will see U.S. housing starts/building permits data as well. The week tapers off in the back half with the Philadelphia Fed survey on Thursday.