Markets In A Minute - "A Lack Of Further Progress"

By Zac Martin of HoranWealth

Portfolio Manager & Principal, HORAN Capital Advisors • May 7, 2024 at 8:40 PM EDT

May's FOMC meeting left the Fed Funds Rate unchanged. JOLTS showed fewer job openings with increased layoffs. April's job report disappointed, adding only 175k jobs and seeing higher unemployment. Consumer confidence sharply dropped to 97 in April.

person using macbook pro on black table

Image Source: Unsplash

The Fed announced in May’s FOMC meeting that the Fed Funds Rate will remain unchanged; however, Chair Powell stated that it is unlikely the next move will be a hike.
JOLTS for March saw a decrease in the amount of job openings to 8.48Mil, down from 8.8Mil in February. Additionally, Layoffs ticked higher to 1.5Mil, while Quits and Hires decreased by 480K & 455K.
Unemployment & Non-Farm Payrolls for April came in much lighter than expected (175k Jobs added). Additionally, the Unemployment rate ticked higher to 3.9%.
Consumer Confidence for April took an unexpected and sharp slide to 97, from 103. This dive was led by increasing pessimism around the labor market and real income.
Earnings Recap: Semiconductors have generally seen strong earnings due to higher AI investment-related costs (ON, QCOM, NXPI, AMD). Restaurants highlighted a weakening consumer (MCD, YUM, SBUX). Amazon saw better-than-expected AWS sales, and Apple’s iPhone sales were also better than expected.

The week ahead:

Earnings: O, SPG, VRTX, MCHP (5/6), DIS, DUK, ANET (5/7), ABNB, UBER (5/8).

More By This Author:

Expect Equity Market Corrections
Watching For A Weakening Consumer
A Correction In A Bull Market

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STOCKS IN THIS ARTICLE

AMD DIS MCD O SPG YUM AAPL AMZN MCHP NXPI QCOM VRTX ANET ON UBER ABNB DUK SBUX

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