To The Moon

1. MAJOR INDEXES RETURNS

• The $S&P 500(.SPX)$ and the $DJIA(.DJI)$ posted modest declines that were roughly equal in scale to the previous week’s gains, while the $NASDAQ(.IXIC)$ was essentially flat. Although stocks made sizable daily movements in the latest week, they’ve traded in a relatively narrow range since early April.

• As of last Friday, the$Straits Times Index(STI.SI)$ lost 0.12% last week and$S&P/ASX 200(XJO.AU)$ lost 1.22% weekly.

• After a busy week of corporate earnings, jobs reports, and the latest FOMC meeting, next week could be more subdued. We can expect earnings from $PayPal(PYPL)$ , $Airbnb, Inc.(ABNB)$ , $Walt Disney(DIS)$ , $Electronic Arts(EA)$ , and automakers $Toyota(TM)$ and $Honda(HMC)$ , among others.

• The latest inflation readings will become available on Wednesday with the CPIand PPI for April. Also, policymakers from the Bank of England will hold a key meeting on interest rates Thursday, followed by a GDP reading from the U.K. on Friday.

2. SECTORS AND STOCKS OF $S&P 500(.SPX)$

Only three sectors closed higher last week: the Technology, Healthcare, Utilities, and Energy sectors posted the biggest decliners.

The top 10 winners of$S&P 500(.SPX)$ are $Royal Caribbean Cruises(RCL)$ $Live Nation Entertainment(LYV)$ $Generac(GNRC)$ $Western Union(WU)$ , $Vulcan Materials(VMC)$ $Host(HST)$ $Martin Marietta Materials(MLM)$ $Molson Coors(TAP)$ $Carnival(CCL)$ $Verisk Analytics(VRSK)$

4. MACRO FACTORS

• Fed pause ahead? :For its tenth meeting in a row, the U.S. Fed lifted its benchmark interest rate, but it hinted at the possibility of a pause in its rate-hiking cycle. As it raised its benchmark rate to a range of 5.00% to 5.25%, the Fed’s latest policy statement removed language that had been in previous statements indicating that it “anticipates that some additional policy firming may be appropriate.”

• Bank squeeze: Although overall U.S. stock market volatility remained modest throughout the week, that wasn’t the case for the stocks of regional banks. A handful saw their stocks plunge by as much as 50% on Thursday, only to recover most of that ground on Friday as their shares rallied. In the wake of recent bank failures, regional banks’ balance sheets have come under intense scrutiny.

• Earnings outlook brightens: With roughly 85% of S&P 500 companies having reported Q1 results as of Friday, key metrics this earnings season have come in better than their one-year averages, according to FactSet. In addition, the research firm reports that the overall earnings outlook for full-year 2023 has improved in recent weeks. 

• Debt deadline anxiety: Pressure grew on Congress and the White House to negotiate to avoid a potential default as the treasury secretary said that the government’s capacity to use special accounting measures to keep paying bills may be exhausted by June 1, several weeks earlier than had previously been expected. The president invited congressional leaders to meet with him on May 9 to discuss potential deals to lift the debt ceiling. 

5. THE WEEK AHEAD : MAY 8-12

This week, some of the largest companies in the world will report earnings, including $PayPal(PYPL)$ $Palantir Technologies Inc.(PLTR)$ $Rivian Automotive, Inc.(RIVN)$ $Li Auto(LI)$ $Walt Disney(DIS)$ $JD.com(JD)$ $Airbnb, Inc.(ABNB)$ $Occidental(OXY)$

Key events the coming week:

Monday

• Wholesale inventories, U.S. Census Bureau 

Tuesday

• Consumer Price Index, U.S. Bureau of Labor Statistics

Wednesday

• Durable goods orders, U.S. Census Bureau

Thursday

• Producer Price Index, U.S. Bureau of Labor Statistics

• Weekly unemployment claims, U.S. Department of Labor

Friday

• University of Michigan Index of Consumer Sentiment, preliminary result

• Export and import prices, U.S. Bureau of Labor Statistics

How is your trading plan in this week？

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