The Buzz on Business for April 29th 2024

The commentary, if not the buying and selling of stocks and bonds, was dominated in the last seven days by the unexpectedly weak Gross Domestic Product numbers released on Thursday. The economy grew at a 1.6% annualized rate in the first quarter, which is both below expectations and substantially below the rate at which it has grown over the last several quarters. The numbers for the previous two quarters were also revised downward.

But there was some good news released throughout the week as well. Initial and Continuing Jobless Claims came in below expectations, the housing market continues to show strength in the face of higher interest rates, The S&P US Manufacturing Purchasing Managers Index disappointed, but that was counterbalanced by stronger-than-expected durable goods orders. Clearly, manufacturing has a long way to go and a tough road ahead, but it is making progress if in fits and starts.

And earnings continue, for the most part, to exceed expectations.

And the most important statistic from last week? Stocks were up, about two and a half percent, but so were interest rates while volume fell.

Stock Market Report

After gapping down at the open on Thursday in the face of the GDP Report, stocks gapped up on Friday and held onto those gains into the close.

• The Dow Jones Industrial Average closed at 38,240. That’s up 154 points, or four-tenths of 1%.
• The S&P 500 was up 1%. That’s 52 points, and it closed at 5100, even.
• The NASDAQ composite had a really good day. It was up 316 points. That’s a bit over 2% and finished the day and week at 15,928.
• The Russell 2000 was up almost 1.1%. That’s 21 points and closed back above 2000 at 2002.

Bond Market Report

• After flirting with it all week long, the 2-year treasury finally kissed the 5% level. It was up less than one tick and closed at 5.00% even. That’s the highest yield on the two-year since November of last year.
• The yield on the 20-year was off 4 basis points, and it closed at 4.894%.

Oil, Gold, and Bitcoin

• After trading higher most of the day, oil sold off into the close. It finished down a minuscule $0.09 at $83.64.
• Gold was up $6.20, and a troy ounce now changes hands at $2,351.50.
• And Bitcoin finished down $997.33 at $63,789.28.

Busy Economic and Earnings Week Ahead

The PCE inflation numbers came in about as expected on Friday, maybe a tick or two higher. While we would have liked to have seen better numbers. The report was a bit of a relief.

In addition to lots and lots of earnings coming in this week, including from Apple and Amazon, we have a fairly busy economic calendar to deal with as well, much of it dealing with the labor market. On Wednesday, we get the ADP Non-Farm Payroll report and the JOLTS report.

Thursday, as usual, initial and continuing jobless claims.

And on Friday, the government’s employment report, Average hourly earnings, Non-Farm payrolls, the labor force participation rate, and the unemployment rate for April.

All of this comes out in the shadow of Thursday’s Gross Domestic Product report showing a slowing economy. We shall see.

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