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5/28/24 Weekly Market Commentary

5/28/24 Weekly Market Commentary

May 28, 2024

What happened last week…         

NASDAQ closed at a new record high on Friday, propelled by gains made by Nvidia during the week. Although the DJIA snapped its five-week winning streak, both the S&P 500 and NASDAQ extended their gains to five straight weeks in the green. Thus far, the S&P 500 is on track to rebound from the down month of April, which would put the index in positive territory for six of the previous seven months. Year-to-date performances for the indices are as follows: DJIA (3.66%), S&P 500 (11.21%), NASDAQ (12.72%).

 

Meeting minutes from the Federal Reserve’s April 30-May 1 gathering, where interest rates were left unchanged at 5.25% to 5.50%, stated that the current target range was “supported by intermeeting data indicating continued solid economic growth and a lack of further progress toward the Committee's 2 percent inflation objective in recent months.” In remarks from various speaking engagements, Fed officials expressed a similar sentiment of Federal Reserve Governor Christopher Waller’s comment when he said, “I need to see several more months of good inflation data before I would be comfortable supporting an easing in the stance of monetary policy.” The next meeting takes place June 11-12. According to the CME FedWatch Tool, as of May 24, interest rates are expected to remain unchanged.

 

Nvidia (NVDA) announced during its earnings report, in which it beat on EPS and revenue, that it will conduct a 10-for-1 stock split with shares trading on a split-adjusted basis on June 10. Lam Research (LRCX) also announced a 10-for-1 stock split that will go into effect on a post-split basis on October 3.

 

Existing home sales for April missed expectations (4.21 million) as it decreased to 4.14 million from the upwardly revised 4.22 million (from 4.19 million). It is the lowest reading in three months. New home sales for April fell below expectations (680,000) as it decreased to 634,000 from the downwardly revised 665,000 (from 693,000).

 

The following companies reported earnings last week: PANW, LOW, NVDA, SNOW, TGT, INTU. See pages two and three for details.


Happening this week…

The following companies report earnings this week: CRM, OKTA, COST, ZS.

 

On Thursday, the GDP growth rate (second estimate) for Q1 2024 is expected to decrease to 1.5% from the prior estimate of 1.6%, which was a decrease from the Q4 2023 reading of 3.4%. The 1.6% rate is the lowest growth since the contractions seen during the Covid pandemic.


Thanks for reading!

- The Rockline Team