Weekly Economic Update: Positive Market Indicators

Presented by Nicholas Wealth Management

April 19th, 2021


Weekly Market Update

In this week’s recap: Good indicators for earnings season and other economic data lead to record highs for stocks.


The Week on Wall Street

Stocks reached record highs last week, riding the tailwind of improving economic data and a strong start to the earnings season.

The Dow Jones Industrial Average rose 1.18%, while the Standard & Poor’s 500 gained 1.37%. The Nasdaq Composite index added 1.09%. The MSCI EAFE index, which tracks developed overseas stock markets, climbed 1.00%.1,2,3


Earnings, Economic Data

Stocks rallied early in the week on strong retail sales, a sharp drop in initial jobless claims, and a retreat in bond yields. Stocks then climbed to fresh record highs on Thursday, with the Dow Jones Industrial Average rising above 34,000 for the first time and the S&P 500 approaching 4,200.4

The market overcame some initial jitters arising from health authorities recommending a pause on a COVID-19 vaccine. Stocks also looked past an increase in the Consumer Price Index and a Federal Reserve report that indicated businesses were raising prices.

A surge in housing starts helped the rally, with stock prices moving higher to close out the week. 


The Economic Pulse

Last week provided insight into the economic recovery, and the numbers vindicated the optimism that has driven markets higher.

An acceleration in inflation was expected, but came in at a rate (+2.6%) that didn’t appear to rattle the markets. It was, however, retail sales (an increase of 9.8%), new jobless claims (576,000–the lowest level since March 14, 2020), continuing unemployment claims (the lowest four-week moving average since March 28, 2020), and housing starts (+19.4%) that emboldened investors.5,6,7,8,9

Confirmation of this recovery came with the start of the new earnings season, which kicked off with strong earnings that, in some cases, exceeded Wall Street consensus expectations.


Tip of the Week

When was the last time you calculated your net worth? Doing this annually will help you gauge the pace of your financial progress.


Media

As Georgians, we see first-hand the lives affected by ‘woke’ organizations like the MLB. Small businesses around Truist Park are desperate to survive. David Nicholas joined Varney & Co. on Fox Business 4/13 to discuss why there is no place for ‘wokeness’ on Wall Street.

Be sure to subscribe to our YouTube page for all of David’s media commentaries CLICK HERE!



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Investment advisory services offered through Bluepath Capital and Triumph Wealth Advisors. Nicholas Wealth, Bluepath Capital and Triumph Wealth Advisors are separate entities, and are not owned or controlled by WEG. This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

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CITATIONS:

1. The Wall Street Journal, April 16, 2021

2. The Wall Street Journal, April 16, 2021

3. The Wall Street Journal, April 16, 2021

4. The Wall Street Journal, April 13, 2021

5. CNBC, April 15, 2021

6. The Wall Street Journal, April 15, 2021

7. Department of Labor News Release, April 15, 2021

8. Department of Labor News Release, April 15, 2021

9. Reuters, April 16, 2021

David Nicholas

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