John Hancock: Weekly Market Recap Week Ended April 26th

Recovery story

The market’s climb above its previous record high set last September is remarkable in part because of the depths that stocks sank to just four months ago. Since a recent low on December 24, the S&P 500 had climbed nearly 25% through Friday’s market close. 

Earnings lift

While quarterly profits are expected to decline modestly this earnings season, a large proportion of companies are surpassing analysts’ expectations, providing some lift for stocks. Nearly 80% of the S&P 500 companies that had reported first-quarter results as of April 24 had exceeded expectations, according to FactSet. 

GDP surprise

The U.S. economy grew at a faster pace in the first quarter than most economists had expected. The government’s initial estimate released Friday pegged the annual growth rate at 3.2%, exceeding expectations for around 2.0%. In last year’s fourth quarter, GDP expanded at a 2.2% clip.  

Fed ahead

The U.S. Federal Reserve is expected to keep current interest rates unchanged when it concludes a two-day meeting on Wednesday. The Fed is sorting through mixed signals from the economy; while inflation has recently remained tame, Friday’s first-quarter GDP report indicated the economy may be regaining momentum.  

Source: https://wmr.jhinvestments.com