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John Hancock: Weekly Market Recap Week Ended April 21

April 25, 2023

 

Earnings scorecard

After the second week of earnings season, the proportion of S&P 500 companies that had beaten analysts’ quarterly net income expectations stood at 76% as of Friday, according to FactSet. That so-called beat rate ranks slightly below the 77% five-year average. Across sectors, consumer discretionary and industrials stocks are expected to report the strongest earnings growth overall.

 

Debt ceiling showdown

The latest round of partisan brinkmanship in Washington, D.C., over the nation’s debt ceiling fueled anxiety for investors. House Republicans on Wednesday introduced a bill that would cut federal spending in exchange for lifting the ceiling for one year. Meanwhile, the government continued to take special accounting measures to meet debt obligations and prevent a potential default.

 

U.S. economic checkup

The U.S. government on Thursday is scheduled to release its initial estimate of first-quarter economic growth, with most economists expecting that GDP expanded at an annual rate of around 2.0%. That would mark a modest slowdown from the fourth quarter of last year, when GDP growth was 2.6%.

 

Home price decline

For the first time in 11 years, prices of existing U.S. homes have fallen for two months in a row. The National Association of Realtors said that the median existing home sale price in March fell 0.9% from a year earlier to $375,000.

 

Source: https://wmr.jhinvestments.com/