US Stock Markets Ended April 30, 2021
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Equities ended the week mixed as stellar earnings reports resulted in muted reactions. In addition, many investors fear rising COIVD-19 cases in India, Brazil and other countries could lead to reduced global growth. By contrast, the U.S. economy is gaining steam with the U.S. economy growing by 6.4% in the first quarter and U.S. weekly jobless claims falling to their lowest level since the pandemic began. The Federal Reserve signaled they will remain accommodative, while noting the labor market and economy are strengthening. Earnings this week were highlighted by big technology firms, which handily beat estimates. However, price reactions were mixed as difficult comparisons and rising valuations led some traders to take profits. Apple Inc. topped expectations by over 40% on strength in iPhones, Macs, and iPads. A seasonally late cycle refresh in handsets and consumer shifts to work and learn from home benefited the world's largest company. Despite beating expectations with 38% bookings growth, shares of Microsoft Corp. fell on conservative guidance. Both Alphabet Inc. and Facebook Inc. saw a surge in digital advertising that led to blowout quarters for both internet giants. In other earnings news, United Parcel Service Inc. beat expectations on continued strength in packages and PulteGroup Inc. posted strong results on better-than-expected gross margins. While equity markets failed to keep an upward trajectory, a pause could be healthy as fundamentals catch up to market movement. Easy money, lower market volatility, strong fundamentals, continued stimulus, and a reopening of the economy could lead to further market gains.
Posted on Monday, May 3, 2021 @ 8:49 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.