By Bill Hornbarger, Chief Investment Officer
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Three Things to Watch
- The focus will be squarely on the U.S. Federal Reserve (Fed) this week. The central bank meets for the third time this year and will announce its rate decision Wednesday afternoon. The futures markets currently indicate a less than 5% chance that the Fed will lower rates this week.
- The first-quarter earnings parade will continue this week with high-profile names Ford, Disney and AMD on the tape. To date, approximately 75% of the S&P 500 has reported, with 76% reporting positive earnings surprises and an aggregate surprise of 8.3%.
- The data calendar will be highlighted by the Institute for Supply Management Services Index and the trade deficit. Last week’s employment report for April was the first “hard” data post-Liberation Day, and it was better-than-expected, alleviating some of the concerns over tariffs.
Three Things to Know
- Cinco de Mayo is a holiday celebrated on May 5 in parts of Mexico and the United States in honor of a military victory over the French forces of Napoleon III in 1862, known as the Battle of Puebla. Cinco de Mayo is not to be confused with Mexican Independence Day, which falls on September 16. The latter holiday was established in 1810, some 50 years before the Battle of Puebla occurred. (Source: Britannica)
- The combined revenue of the Big Four U.S. tech companies hit a record $1.68 trillion over the last 12 months: Amazon, $650 billion; Apple, $400 billion; Google, $360 billion; and Microsoft, $270 billion. That’s larger than the gross domestic product of all but 15 countries. (Source: Charlie Bilello)
- The U.S. bond market has now been in a drawdown for 57 months, by far the longest in history. A drawdown is defined as a decline in the value of an investment, fund or portfolio from its peak to its lowest point and is used to measure the maximum loss incurred during a specific period. (Source: Investopedia, Charlie Bilello)
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.