At the S&P 500 sector level, only information technology and communication services finished higher on the week, with tech gaining more than 3%, thanks in part to Nvidia. Energy led to the downside, sinking nearly 4% on the week, impacting Coterre Energy. Other Club names such as Palo Alto Networks and TJX Companies also reported earnings, with solid reports despite initial reactions. 96% of S&P 500 companies have delivered their financials for their latest quarters, with 78% seeing positive earnings surprises and 61% positive sales surprises. Next week, Salesforce, Best Buy, Foot Locker, and Costco are scheduled to report earnings before Broadcom wraps up the earnings season.
Economic data to look out for includes the April personal spending and income data, which contains the core PCE price index and is expected to show a lower rate of inflation. Thursday will bring the second read on first-quarter 2024 GDP, providing insight into recent U.S. economic activity. Pending home sales for April are also expected to show any easing in the rate of home price advances. Earnings to watch include Salesforce on Wednesday, Best Buy on Thursday before the bell, Foot Locker also on Thursday morning, and Costco after the bell on Thursday. These reports will provide insights into consumer behavior, innovation, and inflation trends.
The stock market will be closed on Monday for Memorial Day, and key earnings to watch for the week include CAVA Group and Box on Tuesday, Salesforce, Okta, HP Inc, and American Eagle Outfitters on Wednesday, and Best Buy, Foot Locker, Canopy Growth, Dollar General, and Kohl’s on Thursday. Economic data includes Initial Jobless Claims, Gross Domestic Price Index, and Pending Home Sales. On Friday, Personal Spending & Income data along with the PCE price index will be released. As a subscriber to the CNBC Investing Club with Jim Cramer, trade alerts are provided before trades are made, with specific terms and conditions outlined. No guaranteed outcomes or profits are promised.
Overall, the week saw divergence in the market as higher bond yields impacted the Dow Jones Industrial Average, while strong performances from companies like Nvidia boosted the Nasdaq. Only information technology and communication services finished higher on the week, with energy leading to the downside. Earnings reports from Club names showed positive surprises, with upcoming reports from companies like Salesforce, Best Buy, Foot Locker, and Costco expected to provide further insights into consumer behavior, innovation, and inflation trends. Economic data and earnings reports are key indicators to watch for the week ahead.
