All three major averages ended the week higher, driven by weaker retail sales and consumer price data for April. It was one other week of bad news and excellent news for Wall Street, as each weaker-than-expected reports pointed to further disinflation – which is essential to any hopes of a Federal Reserve rate cut in 2024. Two other reports supported the concept that the central bank’s fight against inflation is having an impact: Single-family home construction and permits within the U.S. fell in April after a surprise increase the previous month, while industrial production fell in need of expectations. Not every thing pointed to a slowdown. The producer price index, a measure of wholesale prices, rose 0.5% in April, beating the Dow Jones estimate of 0.3%. Still, there was enough “bad” news to push stocks higher. The S&P 500 closed above 5,300 for the primary time ever on Wednesday. A day later, the Dow made history by breaking above 40,000 after which closing above that milestone on Friday to finish the week. The Dow rose 1.2% for the week for the fifth straight session. The S&P 500 rose 1.5% and the Nasdaq climbed 2.1%. Within the broad-based S&P 500, technology led the move higher, followed by real estate and healthcare. Industrials and consumer discretionary were the one two sectors to shut lower. Second quarter earnings season is coming to an end. About 93% of S&P 500 corporations have now filed reports, in response to data compiled by FactSet. And the information was mostly good: 78% reported a positive earnings surprise and 60% reported a positive sales surprise. Economic data might be slower next week, except for two housing reports. But we are going to earn profits from three portfolio corporations, including considered one of our two “owned, non-trading” stocks. Next week, three portfolio corporations will report results, while economic data might be quite slow, aside from some real estate reports. The State of the Housing Market: The April existing home sales report on Wednesday and the April latest home sales report on Thursday are each essential for one reason: The housing market is a thorn within the Fed’s side and stays hot despite higher rates of interest . In fact, the price of housing has been probably the most persistent source of inflation. Last week’s weaker housing report was a continuation of the disinflation that began in March 2023, but continues to be well above the Fed’s 2% goal. And since housing accounts for a couple of third of the CPI – and much more on the core level – it’s a key cost that’s squeezing consumers and discouraging the Fed from cutting rates of interest. Income: After per week with no income from club shares, we are going to receive three in the approaching week. Palo Alto Networks is seeking to escape the penalty box after a disappointing January quarter as management pursued a brand new technique to speed up the pace of “platformization,” or bundling of its services and products for patrons. While the move puts some pressure on the financial industry within the short term, it is anticipated to steer to improved growth in the long run as more customers develop into more deeply integrated into Palo Alto’s security ecosystem. We provided a more detailed preview of the quarter this week. Off-price retailer TJX Companies stands to learn from pressures consumers are feeling from ongoing inflation. Consumers have gotten cautious, but they’re still buying – they only want higher deals, and that is where TJX comes into play. We want management to debate customer traffic, shopping cart size, and spending trends. Chipmaker and AI leader Nvidia is anticipated to beat and improve again this quarter. Delivery times for the corporate’s AI chips might be a spotlight as demand continues to outstrip supply. Additionally, we would really like to know concerning the demand for the brand new Blackwell chip coming later this 12 months. We are also searching for updates on software, which we consider is a key element within the long-term growth story, maintaining a premium valuation for the stock and ensuring lower cyclicality in earnings. Monday, May twentieth Before the bell: Li Auto (LI), Wix.com (WIX), Global-e Online (GLBE), Nexxen International (NEXN) After the bell: Palo Alto Networks (PANW), Zoom Video Communications ( ZM ), Trip.com Group Limited (TCOM), James Hardie Industries NV (JHX), Nordson Corp. (NDSN), Keysight Technologies (KEYS) Tuesday, May 21 Before the bell: ZIM Integrated Shipping Services (ZIM), Macy’s (M ), Lowe’s Companies (LOW), AutoZone (AZO), Eagle Materials (EXP), BiomX ( PHGE) After the Bell: Modine Manufacturing Co. (MOD), Toll Brothers (TOL), ViaSat (VSAT), Alvotech (ALVO) , Urban Outfitters (URBN) Wednesday, May twenty second 10:00 a.m. ET: Inventory Sales 2:00 p.m PM ET: FOMC Minutes before trading begins: TJX Companies (TJX), Target Corp. (TGT), Analog Devices (ADI), Dorian LPG Ltd (LPG), Dycom Industries (DY), Golden Ocean Group Limited (GOGL), WalkMe (WKME), Petco Health and Wellness Company (WOOF), Williams-Sonoma (WSM ) After the bell: Nvidia (NVDA) , Snowflake (SNOW), elf Beauty (ELF), VF Corp. (VFC), Synopsys (SNPS), Star Bulk Carriers Corp (SBLK), LiveRamp Holdings (RAMP), Chemical & Mining Co. of Chile (SQM), Grupo Supervielle SA (SUPV) Thursday, May twenty third 8:30 a.m. ET : Initial Jobless Claims 10:00 a.m. ET: New Home Sales Before the Bell: Ralph Lauren Corporation (RL), BJ’s Wholesale Club (BJ), Maxeon Solar Technologies, Ltd (MAXN), TD Bank Group (TD), Endava (DAVA ), Polestar (PSNY), Medtronic (MDT), NetEase (NTES) After the Bell: Deckers Brands (DECK), Intuit (INTU), Ross Stores (ROST), Workday (WDAY) Friday, May 24, 8:30 ET: Standing Orders Before the Bell: Booz Allen Hamilton Holding Corporation (BAH), Mesa Laboratories (MLAB) (See an entire list of Jim Cramer’s Charitable Trust stocks here. ) As a subscriber to CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim discussed a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE INVESTING CLUB INFORMATION SET FORTH ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. THERE ARE NO fiduciary duty or duty IN RECEIVING YOUR INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
Nvidia CEO Jensen Huang delivers a keynote address in the course of the Nvidia GTC Artificial Intelligence Conference at SAP Center on March 18, 2024 in San Jose, California.
Justin Sullivan | Getty Images
All three major averages ended the week higher, driven by weaker retail sales and consumer price data for April. It was one other week of bad news and excellent news for Wall Street, as each weaker-than-expected reports pointed to further disinflation – which is essential to any hopes of a Federal Reserve rate cut in 2024.
