Winthrop Partner’s Market and Economic Outlook 4-19-21

The Markets (as of market close April 16, 2021)

Stocks ended the first day of trading last week in the red, falling from their record highs of the prior week, as investors await the start of corporate earnings season. Among the indexes, both the Russell 2000 and the Nasdaq (-0.4%) led the decline, followed by the Dow (-0.2%), the Global Dow (-0.1%), and the S&P 500, which broke even on the day. Treasury yields inched higher, while the dollar dipped. Crude oil prices rose, but remained below $60.00 per barrel. Market sectors were mixed, with consumer discretionary, real estate, and consumer staples pushing higher, while energy, communication services, and information technology fell.

Tech shares pushed the Nasdaq up 1.1% last Tuesday. The S&P 500 gained 0.3% and the Global Dow inched up 0.1%. The Russell 2000 and the Dow dipped lower. Yields on 10-year Treasuries dropped more than 3.0%, the dollar sank for the second consecutive day, while crude oil prices rose to over $60.00 per barrel. Information technology, consumer discretionary, utilities, real estate, and health care gained, while industrials, energy, materials, consumer staples, and communication services declined.

Last Wednesday saw tech stocks retreat from their surge the prior day. Stocks were otherwise mixed, with the Nasdaq (1.0%) and the S&P 500 (0.4%) lagging, while the Russell 2000 (0.8%), the Global Dow (0.7%), and the Dow (0.2%) posted gains. Treasury yields and crude oil prices advanced. the dollar dipped. Energy led the sectors, gaining 2.9%, with financials, materials, and utilities climbing modestly. Consumer discretionary and information technology each fell 1.2%.
Stocks reached record highs last Thursday, while Treasury yields fell by the most since February. Strong economic reports, headlined by record retail sales in March coupled with a significant drop in weekly unemployment claims, offered signs that economic recovery from the pandemic is accelerating. The Nasdaq (1.3%), the S&P 500 (1.1%), and the Dow (0.9%) each reached all-time highs. Yields on 10-year Treasuries plunged 6.6%. Crude oil prices continued to increase, while the dollar was mixed. Only energy failed to close the day in the black as each of the remaining market sectors advanced, led by real estate (1.95%), information technology (1.8%), and health care (1.7%).
Equities closed last week on an upswing, with each of the benchmark indexes gaining ground. The S&P 500 led the way, climbing 1.1% to reach yet another record high.

The Dow gained 0.9% and the Global Dow advanced 0.6%. The Russell 2000 added 0.4%,
while the Nasdaq inched up 0.1%. The yield on 10-year Treasuries plunged 6.6%, while
the dollar and crude oil prices dipped. Most of the market sectors advanced last Friday,
led by materials, utilities, consumer discretionary, and health care. Energy
underperformed, falling nearly 1.0%.

Last week, investors were confronted with a pause in the distribution of the Johnson &
Johnson COVID-19 vaccine, the potential for rising inflation, and the likelihood of higher
taxes to offset the burgeoning government budget deficit. Nevertheless, strong first quarter
corporate earnings reports coupled with positive economic reports provided
enough encouragement for investors to continue to trade.

Each of the benchmark indexes advanced last week. A strong performance by Chinese stocks helped push the
Global Dow up 1.5%, followed by the Nasdaq, the S&P 500, the Dow, and the Russell
2000. Prices for Treasuries climbed, driving yields lower. Crude oil prices pushed well
past $60.00 per barrel, gold prices rose, while the dollar fell. Utilities, materials, health
care, real estate, and consumer discretionary each gained at least 2.0% on the week to
lead the market sectors. The Russell 2000 continues to lead the indexes, year to date,
followed by the Global Dow, the Dow, the S&P 500, and the Nasdaq. 

The national average retail price for regular gasoline was $2.849 per gallon on April 12,
$0.008 per gallon less than the prior week’s price but $0.996 higher than a year ago.
U.S. crude oil refinery inputs averaged 15.1 million barrels per day during the week
ended April 9, which was 7,000 barrels per day more than the previous week’s average.
Refineries operated at 85.0% of their operable capacity last week. Gasoline production
increased last week, averaging 9.6 million barrels per day. Click her for the entire article:Winthrop Partners Market and Economic Update 4-19-21