4/1/24 Weekly Market Commentary

4/1/24 Weekly Market Commentary

April 01, 2024

What happened last week…         

All three major indices extended their winning streaks to five consecutive months with monthly performances as follows: DJIA (2.08%), S&P 500 (3.10%), NASDAQ (1.79%). Each index also made gains in the quarter: DJIA (5.62%), S&P 500 (10.16%), NASDAQ (9.11%).

 

The European Union is investigating Alphabet (GOOG), Apple (AAPL) and Meta Platforms (META) for potential violations of its competition rules. According to the press release, “The Commission has opened non-compliance investigations under the Digital Markets Act (DMA) into Alphabet's rules on steering in Google Play and self-preferencing on Google Search, Apple's rules on steering in the App Store and the choice screen for Safari and Meta's ‘pay or consent model.’” Under the DMA, gatekeepers must “allow app developers to ‘steer’ consumers to offers outside the gatekeepers' app stores, free of charge.”

 

Amazon (AMZN) completed its $4 billion investment in artificial intelligence startup Anthropic. Last September, Amazon made an initial investment of $1.25 billion and last week added an additional $2.75 billion. Amazon will maintain a minority stake in the company, which is a direct competitor to ChatGPT. Anthropic, last valued at $18.4 billion, will use Amazon Web Services as its primary cloud provider.

 

Home Depot (HD) announced that it is purchasing SRS Distribution, a materials provider for professionals, for $18.25 billion. It is the largest deal in company history, which is expected to close by next January.

 

The GDP growth rate (final estimate) for Q4 2023 beat expectations (3.2%) as it increased to 3.4% from the prior reading of 3.2%. However, the figure declined from the 4.9% growth rate in the previous quarter.

 

New home sales for February missed expectations (675,000) as it decreased to 662,000 from the upwardly revised 664,000 (from 661,000). The peak reading over the previous 12 months is 728,000 from last July.


This week…

On Monday, the manufacturing PMI for March is expected to rise to 48.5 from 47.8, which was the 16th straight contractionary reading (below 50). Meanwhile, on Wednesday, the non-manufacturing PMI for March is expected to dip to 52.5 from 52.6, which was the 14th straight month of an expansionary reading.

 

On Wednesday, the ADP employment change may increase to 150,000 from 140,000. On Friday, the unemployment rate is expected to remain at 3.9%, nonfarm payrolls are forecasted to decrease to 198,000 from 275,000, and average hourly earnings month-over-month are expected to increase to 0.3% from 0.1%.

Thanks for reading!

- The Rockline Team


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The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.

Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities.

The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors. The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors.

The NASDAQ Composite Index measures all NASDAQ domestic and non-U.S. based common stocks listed on The NASDAQ Stock Market. The market value, the last sale price multiplied by total shares outstanding, is calculated throughout the trading day, and is related to the total value of the Index.

The S&P 500 Index is a capitalization weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.

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