4/22/24 Weekly Market Commentary

4/22/24 Weekly Market Commentary

April 22, 2024

What happened last week…         

At a policy forum, Federal Reserve Chairman Jerome Powell spoke about inflation remaining above the Fed’s target saying, “More recent data shows solid growth and continued strength in the labor market, but also a lack of further progress so far this year on returning to our 2% inflation goal.” Powell noted that recent data has not given Fed officials greater confidence and that unless inflation trends downward, “We can maintain the current level of restriction for as long as needed.”

 

The International Monetary Fund (IMF) slightly raised its global growth forecast by 0.1 percentage point to growth of 3.2% in 2024, which would match the projection for 2023. In a CNBC interview, the IMF’s chief economist Pierre-Olivier Gourinchas said, “The chances that we would have something like a global recession is fairly minimal. At this point, it will take a lot to derail this economy.”

 

Salesforce (CRM) is reportedly in talks to acquire data-management firm Informatica (INFA), which has a market cap of about $10 billion. The company is no stranger to large acquisitions, its largest deal occurred in 2021 when it purchased Slack for about $28 billion. In 2019, Salesforce bought Tableau for $15 billion.

 

Tesla (TSLA) will lay off more than 10% of its global workforce of about 140,000 employees. Longtime Tesla executives Drew Baglino and Rohan Patel, who were with the company since 2006 and 2016, respectively, are also departing.

 

Existing home sales for March missed expectations (4.20 million) as it decreased to 4.19 million from 4.38 million, which had been the highest reading in a year.

 

The following companies reported earnings last week: JNJ, PNC, UNH, BX, GPC, NFLX, PG. See pages two and three for details.

 

This week…


On Tuesday, new home sales for March are expected to increase to 669,000 from 662,000. The peak reading over the previous 12 months is 728,000 from last July.

 

On Thursday, the GDP growth rate (first estimate) for Q1 2024 is expected to decrease to 2.1% from the Q4 2023 reading of 3.4%, which was a decline from the 4.9% reading in Q3 2023.


Thanks for reading!

- The Rockline Team