Sectors Recap: AMZN & TSLA Pushes Consumer Cyclical High, Continue Focus on Earnings
Weekly Index Returns from Last Week
The major U.S. stock indexes posted their second positive week in a row, Markets were driven by jobs numbers, earnings reports, and the increasingly likely near-term prospect of rising interest rates.
Other Markets:
Oil surged above $92 per barrel—the highest level in nearly 8 years.The price was up 23% for the year, building on 2021′s gain of more than 50%.
Friday’s strong jobs report weighed on prices of government bonds, sending the yield of the 10-year U.S. Treasury to 1.92%—the highest level since December 2019.
Macro Factors:
About 56% of companies had reported results as of Friday, earnings performance continued to improve.The fourth-quarter profits at companies in the S&P 500 were expected to increase more than 29%, that’s an increase from the 24% rise that had been projected at the end of the previous week, according to FactSet.
The 467,000 jobs that the U.S. economy generated in January exceeded economists’ expectations by a wide margin, and upward revisions to job totals in late 2021 provided a further indication of the labor market’s strength.
11 Sectors Performances:
Among the 11 sectors, The Consumer Cyclical Sector leads the rebound, followed by Energy and Financial Sectors. Real Estate only gained 0.19%, followed by Cousumer Defensive Sector with 0.37% increase.
Corporate earnings announcements will continue to set the tone. It's clear that valuations haven't necessarily completely bottomed. Companies that missed earnings expectations, such as Meta (Facebook) last week, have seen their stock prices punished.
However, it's an encouraging sign that the market has rallied on positive announcements from names like Apple, Alphabet (Google) and Amazon. May the earnings story will be a key driver of positive market performance this year and can give confidence to investors to be opportunistic during this pullback.
Related Reading:
Key events in this week, share your trading plans!
75% Earnings Beat Estimates? Who will lead to Cheer the Market Again?
Oil Price Touches New High Since 2014: 3 Top Oil Stocks to Buy
Sectors Recap: Only Energy Sector Wins in Jan, What's Your Expecation Next?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
[smile]