Stocks ended the week mixed, with most large-cap indices slightly lower, while small and mid-caps eked out gains. High-Yield Bonds posted modest losses, following five-straight weekly gains. Treasuries rallied on mixed economic data and a dovish Fed statement.
The S&P 500 finished the week slightly lower to 2,173, down less than one-tenth of a percent. A lack of direction resulted in a tight 1% trading range over the last 11 days, an occurrence unseen in recent stock market history. Oil continued its decline down to $41/barrel, while the U.S. Dollar slipped as well. U.S. economic data was mixed, with New Home Sales and Consumer Confidence showing strength and Durable Goods Orders and GDP weaker than expected. The Fed announced that interest rates will remain the same, but were slightly less dovish, determining that some near-term risk has diminished.
More than half of the S&P 500 companies have now reported earnings. Combining actual results for the companies that have already reported and the remaining companies’ estimates, the year-over-year revenue growth rate is at +0.1%. If this holds, it would be the first y/y growth in revenue for the S&P 500 since Q4 of 2014. Tech earnings stood out last week with very strong reports from Amazon (AMZN), Apple (AAPL), Facebook (FB), and Alphabet (GOOGL). Investors will focus on U.S. Jobs data next Friday. The consensus is forecasting a month/month gain of 185,000 non-farm jobs.