Weekly Update – April 1, 2024
The Week on Wall Street
Stocks were narrowly higher for the week as investors digested mixed economic news about consumer confidence. All three of the major averages posted gains for Q1 2024.
Stocks Finish Strong
Markets slipped for the first half of the four-day week as investors took a breather after the prior week’s gain. Conflicting economic news on Monday and Tuesday contributed to the slide. New home sales in February slipped 0.3 percent over the prior month but increased by 5.9 percent from the prior year. Durable goods orders—everything from washing machines to helicopters—rebounded 1.4 percent in February, beating expectations and recouping some of January’s 6.9 percent drop.1,2,3
Stocks rallied on Wednesday, including a fresh record close for the Standard & Poor’s 500. An upward revision to consumer sentiment on Thursday helped the rally along. The markets are closed on Friday when the much-anticipated inflation report called the Personal Consumption and Expenditures (PCE) is released, which could set up a volatile Monday.4
Doubters & Believers
Getting a straightforward read on consumers this week was challenging. The Conference Board reported on Tuesday that its Consumer Confidence Index remained essentially unchanged—as it has for the past six months—showing consumers were generally pessimistic about the future.
But on Thursday, the University of Michigan’s consumer-sentiment survey showed consumer confidence hit a 2½-year high in March. It suggested that consumers had gained more confidence that inflation would drop and alleviate some pressure on household finances. Friday’s PCE report may give some additional insights into consumer confidence.5,6
THIS WEEK: KEY ECONOMIC DATA
Monday: ISM Manufacturing Index. PMI Manufacturing Final. Construction Spending.
Tuesday: Motor Vehicle Sales. Factory Orders. JOLTS.
Wednesday: ADP Employment Report. EIA Petroleum Status Report. ISM Services Index.
Thursday: Jobless Claims. International Trade in Goods & Services. Fed Balance Sheet. Natural Gas Report.
Friday: Employment Situation. Consumer Credit.
THIS WEEK: COMPANIES REPORTING EARNINGS
Tuesday: Paychex, Inc. (PAYX)
Wednesday: Levi Strauss & Co. (LEVI)
Thursday: Conagra Brands (CAG)
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1. The Wall Street Journal, March 28, 2024
2. CNBC.com, March 25, 2024
3. Reuters, March 26, 2024
4. CNBC.com, March 26, 2024
5. MarketWatch.com, March 28, 2024
6. The Conference Board, March 26, 2024