We are here at FFR Trading with our biweekly market update for the 1st half of April 2021! As a trader and investor, it is important to track market movements and pay to attention to what history tells about investments – that way traders can make informed decisions and check their emotions at the door! Now, without further delay let’s discuss our market update for the 1st half of April 2021.
Thursday – April 1
- A new month, quarter, and milestone for the stock market, the S&P 500 powered through the 4,000 level for the first time.
- The market appears its rotational shift from cyclical stocks to big growth names and back allowing the more overheated sectors to cool off.
- Jobless claims came in much higher than expected with 719,000 new claims last week over the expected 658,000.
- March’s flash PMI came in strong at 59.1, slightly higher than the expected 59.0 consensus.
- With orders exceptionally strong, deliveries exceptionally slow, and costs surging, ISM’s manufacturing sample is at risk of overheating. Consensus for March’s index is 61.5 versus February’s 60.8 which easily exceeded Econoday’s high estimate.
- Construction spending in January got a long-delayed boost from the nonresidential side of the report, making for an overall gain of 1.7 percent that far exceeded consensus range. In February it showed a total decline of 0.8 percent, in line with consensus expectations.
Friday – April 2 – Good Friday
- Markets closed – Good Friday
- The Employment Situation shows a promising picture despite yesterday’s jobless claims as 916,000 new jobs were added to the economy in addition to the unemployment rate dropping to 6.0% from its prior 6.2%.
Monday – April 5
- The record rally rolled on as stocks moved higher following a batch of blowout economic data with the S&P reaching another record high.
- The jobs report last Friday had investors celebrating after the economy added 916,000 jobs way above the 675,000 economists were expecting.
- PMI composite final for March came in on the top end of expectations with a figure of 59.7, slightly above the expected 59.1.
- February factory orders fell to -0.8%, slightly below -0.5% consensus.
- March ISM services index came in strong at 63.7, well above expectations of 58.6.
Tuesday – April 6
- Stocks took a breather but not until after the S&P hit another intraday record high.
- Job openings in February grew as the JOLTS report came in at 7.367 million roping expectations of 6.850 million.
Wednesday – April 7
- Stocks drifted around in sluggish trading although the S&P managed another record close and the Dow ended the day with a slight gain.
- Consumer credit in February logged the largest “beat” on record, coming in at $27.6 billion when economists were expecting around $2.6 billion–a nearly 10-fold surprise.
- This indicates that Americans are feeling confident enough in the economy not only to spend but to go into credit card debt.
Thursday – April 8
- It was another mixed session for stocks though the S&P closed at another record high and the Dow advanced to close just shy of another record high.
- Fed Chair Jerome Powell spoke at the IMF seminar on a panel in which he struck a dovish tone, giving no indication of rate hikes anytime soon, saying that “the economic recovery remains incomplete and uneven.”
- On the jobs front, last week saw 744,000 new jobless claims filed, topping expectations of 680,000 thousand.
Friday – April 9 (mid-day)
- The S&P 500 traded near record highs as Wall Street is set to wrap up the week with solid gains.
- The producer price index, which measures wholesale price inflation, jumped in March, showing a rise of 1.0%, compared with a projected increase of 0.4% from economists.
- Year over year, the PPI surged 4.2%, which marks the largest annual gain in more than nine years.
- Investors shrugged off the jump in jobless claims from last week. The Labor Department reported first-time claims for the week ended April 3 totaled 744,000, well above the expectation for 694,000 from economists surveyed by Dow Jones.
- Fed Chair Jerome Powell called the recovery from the pandemic “uneven” on Thursday, signaling a more robust recovery is needed.
Monday – April 12
- It was a fairly quiet Monday with the S&P ending flat.
- Investors are waiting for the start of earnings season this Wednesday, starting with financials
- The market is expecting upbeat earnings and optimistic commentary from the CEOs of the banks and financial institutions reporting first.
- There were no major economic reports today.
Tuesday – April 13
- The day ended mixed as the Dow closed down while the S&P 500 and Nasdaq closed up by the end of the trading day.
- The J&J vaccine recall put a bit of a hamper on the brighter news that otherwise would have lifted the market.
- Contrary to the optimism resulting from its report, the March Consumer Price Index (CPI) jumped year over year to 2.6%; minus food and energy costs, it stands at 1.6%.
- Note that this stands within the consensus range and close to the actual consensus figures expected by economists.
- Investors are hopeful that the Federal Reserve can maintain control over the inflation rate, as Fed chair Powell has often stated.
- The March NFIB Small Business optimism index came in at 98.2, higher than last month’s 95.8 but lower than the expected 99.0–meaning, optimistic enough, but with caution.
Wednesday – April 14
- It was a choppy day but the Dow and S&P 500 hit record intraday highs before losing steam into the close.
- Bitcoin closed at a record high as Coinbase IPO debuted opening at $380 per share and closing at $328–a valuation close to $100 billion.
- Earnings season kicked off with mind-boggling results; Goldman Sachs reported earning 80% above analyst expectations; JP Morgan reported 48% above consensus; Wells Fargo, 50% above.
- These earnings beats, however, were attributed to trading profits and the release of loan loss provisions (money set aside for bad loans) rather than revenue generated from new loans; hence, the market response to these banks’ shares was muted.
- Fed chair Jerome Powell acknowledged the rise in inflation, claiming–as the market believes him for now–that inflation is not a big problem.
Thursday – April 15
- The stock market climbed to record levels after financial companies reported strong earnings and economic data pointed to a rebound in consumer spending and jobs.
- Retail sales surged 9.8% in March as additional stimulus sent consumer spending soaring.
- First-time filings for jobless claims dropped to the lowest level since March 2020–only 576,000 new claims for the week ended April 10 versus economist expectations of 710,000.
That sums up our review our market update for the 1st half of April 2021. At FFR Trading, we are all about helping investors make informed decisions based on strategies accessing market movements. If you would like to learn more about our trading strategies or speak with one of our client care specialists for more information, give us a call at (800) 883-0524 or contacting us via email or our contact form. We are always happy to help! April is shaping up to be an interesting month with lots of corporate reports, as well as data on the health and patterns of the U.S. economy. Stay in the loop by signing up for email updates for our market update by contacting us or visiting our social media pages. Follow us on Instagram, Facebook, Twitter, and LinkedIn for frequent updates and market news. Happy trading, everyone!