As the trading week came to a close, the Dow Jones Industrial Average (DJI) found itself navigating choppy waters, facing the prospect of a fifth consecutive loss – a dubious honor not seen since June. The blue-chip benchmark descended to its lowest point since a mid-February surge that culminated in record highs. While the S&P 500 Index (SPX) and the Nasdaq Composite (IXIC) managed to eke out a slightly better performance, the shadow of impending weekly losses loomed over them as well.
Blame was cast upon a hotter-than-anticipated consumer price index (CPI) report for the prevailing market gloom, with the Federal Reserve’s March meeting minutes exacerbating concerns by revealing officials’ apprehension over persistently high inflation levels. In this climate of uncertainty, doubts regarding the likelihood of any imminent rate cuts by the Fed permeated Wall Street. However, a glimmer of relief flickered later in the week with a producer price index (PPI) reading that fell below analysts’ expectations.
Positive Analyst Sentiments in Focus
The analyst landscape was bustling this week with a plethora of stocks offering attractive entry points following recent declines. Analysts expressed optimism towards Ulta Beauty (ULTA) post-selloff, Take-Two Interactive (TTWO) ahead of the Grand Theft Auto VI release, and Ally Financial (ALLY) in anticipation of earnings. American Eagle Outfitters (AEO) and Molson Coors Beverage (TAP) secured upgrades, alongside tech stalwarts Nvidia (NVIDIA), GoodRx (GDRX), Nike (NKE), and GitLab (GTLB).
Market Movers and Shakers
Boeing (BA) faced fresh turbulence this week, while semiconductor stocks encountered headwinds from China. The crypto sector received a boost from Bitcoin (BTC), and Pfizer (PFE) reported encouraging trial results for its respiratory syncytial virus (RSV) vaccine. Meanwhile, Vertex Pharmaceuticals (VRTX) set the stage for a billion-dollar merger with Alpine Immune Sciences (ALPN), propelling both ALPN and Vera Therapeutics (VERA) to higher ground.
Anticipating Fed Updates and Economic Data
Looking ahead, the upcoming week promises a deluge of economic data releases, including the Fed’s Beige Book report and speeches from various Fed officials. Additionally, several major banks are slated to report their earnings. Since its nadir in late October of the previous year, the S&P 500 Index (SPX) has surged by over 25%. Notable insights on the best and worst-performing sectors during this period, courtesy of Schaeffer’s Senior Quantitative Analyst Rocky White, underscore the market’s dynamic nature. Furthermore, Schaeffer’s Senior V.P. of Research Todd Salamone identifies key indicators pointing towards potential market volatility in the days ahead.
