By Bill Hornbarger, Chief Investment Officer
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Three Things to Watch
- The economic calendar is backloaded with important data this week. The first look at first-quarter gross domestic product (GDP) will be released on Thursday and is expected at 2.5%. That would be the seventh consecutive quarter with real GDP above 2% and would confirm the strong start to the year. On Friday, the U.S. Federal Reserve’s favored inflation measure will be released. The core Personal Consumption Expenditures Price Index is expected at 2.7% (year-over-year), a slight improvement from the previous month.
- We will also be closely watching the inflation expectations on Friday from the University of Michigan consumer sentiment report. Recent Consumer Price Index reports have shown inflation accelerating, and if that results in higher expected inflation, consumer spending could be potentially impacted.
- And finally, a very busy week for earnings reports with hundreds of companies reporting, including Magnificent Seven members Meta, Microsoft, Alphabet and Tesla. So far, 80% of S&P 500 companies that have reported first-quarter earnings have posted positive surprises.
Three Things to Know
- This week, the bond market must absorb $183 billion of two-, five- and seven-year notes, with both the two- and five-year note auctions at record high levels. (Source: Bloomberg)
- Gold closed at an all-time high last week at $2,392 per ounce. (Source: Bloomberg)
- On April 22, 1876, the first official National League baseball game was played between the Boston Red Caps and the Philadelphia Athletics in Philadelphia. Boston won 6-5. (Source: www.onthisday.com)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.