US Equity Markets dropped again last week as economic data, while strong, suggested that peak growth for the economy may be behind us. As a result, the S&P 500 was down 0.4% for the week to bring its gains for the year to 10.6%. After four consecutive weeks of declines, the Nasdaq actually was up 0.3% for the week as investors looked for bargains in some beaten-up technology stocks. For the year, the Nasdaq is up 4.5%. The Russell 2000 (small cap stocks) fell 0.4% for the week and is now up 12.2% for the year.
Global Equity Markets rallied last week, as improving vaccinations and better-than-expected economic data provided hope that the economic recovery is now underway. Developed Markets were up 1.0% for the week and are now up 8.8% for the year. Emerging Markets rose 1.7% for the week to bring their gains for the year to 3.0%.
US Economic Data improved last week. Measures of manufacturing activity for May showed strong growth, albeit weaker than in April, while measures of services activity continued to expand. Initial Weekly Jobless claims continue to trend down, coming in at 444K, setting another low since the pandemic began.
Of Interest to Us
US Corporate Earnings for the first quarter came in much stronger than expected. With 95% of firms having reported their results, 86% of companies beat earnings forecasts and 76% of firms exceeded sales projections, the highest readings since 2008. Earnings growth for the quarter came in at 51.9%, well above initial expectations of 23.7%.
Market Data
for the week ending 5/21/2021
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