US Stock Markets Ended April 16, 2021

The S&P 500 finished the week at all-time highs as retail sales surged and unemployment claims were the lowest on record since the pandemic began. Growth is also inflecting higher internationally with China reporting 18.3% GDP growth in the first quarter. The money center banks unofficially kicked off earnings season with strong results due to loan loss releases, strong investment banking and trading results. However, loan growth remains tepid for banks and Morgan Stanley was the latest victim in the Archegos Capital Management saga, resulting in a suspected $911 million credit and market loss. In other corporate news, shares of J.B. Hunt Transport Services, Inc. and PPG Industries, Inc. rose after beating on both the top and bottom lines due to strong demand. Taiwan Semiconductor Manufacturing Co. warned the chip shortage could last into 2022, leading the world's largest chip manufacturer to again increase capital expenditure and growth guidance. Many auto manufactures have paused production due to the chip shortage in recent weeks. The hot initial public offering market continued with Coinbase Global, Inc., an exchange for cryptocurrencies, gaining over 36% from the offer price. However, shares finished lower on the week from the opening trade. For the week ahead, a bevy of firms will report results likely showing the continued recovery of the U.S. economy. Investors will also closely monitor commentary from the CDC over the paused Johnson & Johnson vaccine. With continued monetary and fiscal support coupled with a strong consumer ready to spend, equities could continue to touch new highs in the coming months.
Posted on Monday, April 19, 2021 @ 8:22 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.