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Market Recap
WEEK OF APR. 10 THROUGH APR. 14, 2023
The S&P 500 index rose 0.8% this week amid a strong start to Q1 bank earnings and milder-than-expected US consumer and producer price data.
The market benchmark ended Friday's session at 4,137.64, up from last week's closing level of 4,105.02. The index is now up 0.7% for the month of April and up 7.8% for the year to date.
The week's increase came as Q1 earnings from big banks including JPMorgan Chase (JPM), Citigroup (C) and Wells Fargo (WFC) surpassed analysts' mean estimates on Friday.
A day earlier, data showed the US producer price index fell 0.5% last month, marking an unexpected drop as the consensus via Econoday was for the index to remain unchanged in March following a flat reading for February. The PPI advanced 2.7% annually, the smallest gain since January 2021.
On Wednesday, a separate report showed the US seasonally adjusted consumer price index, another key measure of inflation, rose by 0.1% in March; this was smaller than the 0.2% increase that was expected and smaller than February's 0.4% gain. In addition, the year-over-year rate for overall CPI slowed to 5% from 6% in the previous month, marking the smallest gain since May 2021.
The week's advance was led by a 2.9% climb in materials, a 2.5% rise in energy and a 2.1% increase in industrials. Other gainers included consumer discretionary, health careand communication services.
Real estate led to the downside with a 1.5% drop. Technology and consumer staples also edged lower.
JPMorgan Chase had the largest percentage gain of the week in the financial sector, climbing 8.8%, amid the bank's stronger-than-expected Q1 results. Citigroup shares were also strong, rising 8.1% on the week, as its Q1 results exceeded analysts' estimates on benefits from higher interest rates.
The energy sector's advance came as crude oil futures also rose on a weekly basis. Gainers included shares of APA Corp. (APA), which rose 7.1% as Truist Securities boosted its price target on the stock to $72 per share from $51.
The winners in the industrial sector included shares of United Rentals (URI), which climbed 6.4% as Deutsche Bank increased its price target on the equipment rental company's stock to $406 per share from $399.
On the downside, the decliners in real estate included Crown Castle (CCI), which received a price target reduction this week from Goldman Sachs. Analysts at the firm lowered their price target on Crown Castle's shares to $142 each from $145 while keeping their investment rating on the stock at neutral. The shares shed 3.8%.
This week's earnings calendar features companies such as Charles Schwab (SCHW), Johnson & Johnson (JNJ), Bank of America (BAC), Netflix (NFLX), Goldman Sachs Group (GS), United Airlines (UAL), Tesla (TSLA), Abbott Laboratories (ABT), International Business Machines (IBM), Philip Morris International (PM), AT&T (T), Union Pacific (UNP), American Express (AXP) and Procter & Gamble (PG).
Economic data will feature several housing reports next week, including the NAHB/Wells Fargo Housing Market index for April on Monday, March housing starts on Tuesday, and March existing home sales on Thursday.
Some regional manufacturing readings for April will also come next week, with the Federal Reserve Bank of New York's Empire State manufacturing report anticipated on Monday and the Philadelphia Fed's manufacturing survey due on Thursday. On Friday, Standard & Poor's will close out the week with April readings on both the services and manufacturing sectors for April.
