US Stock Markets Ended April 18, 2019

Equity markets were mixed during a busy week of earnings as health-care stocks sold-off on renewed concerns over tighter regulation. By contrast, the industrial sector led for the week on strong earnings from Honeywell International Inc., which saw an 8% jump in organic revenue, and Union Pacific Corp., which performed better-than-expected despite weather delays. In economic news, retails sales grew 1.6% in March as temporary factors abated, including the drawn-out government shut downtown and the fourth-quarter market sell-off. Industrial production data surprised to the downside as producers coped with an inventory overhang. In earnings news, shares of PepsiCo Inc. rose after beating expectations on a strong top-line beat that flowed through to earnings. Blackrock Inc. reported earnings above expectations due to strong flows, a rebound in equity markets and higher fees from alternative funds. Despite a beat-and-raise quarter, shares of UnitedHealth Group Inc. declined after earnings due to increased investor worries over a proposal by Democrats to provide universal government healthcare. Bank of America earnings gained on strength in its consumer unit due to higher deposits, interest rates and loan growth. In other corporate news, Qualcomm Inc. surged over 40% for the week after agreeing to a settlement with Apple Inc. over patents and signing an agreement for future royalties. Looking ahead to next week, a bevy of bellwethers are set to report earnings, including technology names Microsoft Corp., Facebook Inc. and Amazon Inc. In addition, the initial reading on first-quarter GDP will be reported. Earnings and economic datapoints will be key in the coming weeks and should provide some clarity if last quarter's slowdown in economic activity was due to idiosyncratic factors or is likely to persist.
Posted on Monday, April 22, 2019 @ 8:29 AM

These posts were prepared by First Trust Advisors L. P., and reflect the current opinion of the authors. They are 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.