Weekly Snapshot April 5th, 2021
Market Review: Week Ending 4/2/2021
In a holiday shortened week, the equity markets traded higher with the large-cap S&P500 Index crossing the 4000 barrier for the first time. The Dow Jones Industrial Average (DJIA) advanced 0.24%, the S&P500 Index (S&P500) gained 1.14%, the Russell 2000 Index (R2000) increased 1.46%, and the NASDAQ Composite (NASDAQ) jumped 2.60%.1 Year-to-date, DJIA returned 8.32%, S&P500 7.02%, NASDAQ 4.59%, and R2000 13.96%.2 In a change of pace, growth outperformed value as interest rates stabilized. Leading stocks were Facebook +5.5%, Google +5.2%, Amazon +3.6%, and Apple +1.5%. S&P 500 sector outperformers for the week were Communications Services +3.39%, Consumer Discretionary +2.17%, and Technology +2.12% while sector underperformers were Consumer Staples -0.83%, Healthcare -59%, and Energy -0.39%.3
This week, President Biden unveiled his $2.3 trillion infrastructure plan for bridges, roads, broadband, and research & development. If passed, the plan would be funded by higher taxes – led by the corporate tax rate increasing to 28% from 21%. In other news, last Friday’s forced liquidation at Archegos Capital was viewed as a “one-off” and not a systemic risk to the markets. Also, fears of increased global supply chain disruptions dissipated as the large container ship stuck in the Suez Canal was freed. The Institute for Supply Management’s March survey came in at 64.7, higher than projected and hitting its highest level since 1983.4 On Friday, the Labor Department said nonfarm payrolls for March jumped 916,000, the most since last August with higher revisions for January and February. Employment gains were broad-based with leisure, hospitality, and construction jobs soaring. The report’s manufacturing diffusion index, a measure of the breadth of hiring across some 75 goods-producing industries, registered one of its highest readings ever.5
One final note, newly reported U.S. coronavirus cases rose above 70,000 – similar to levels reached in late February; however, the vaccine distribution ramp has overshadowed this rise in cases on a risk basis.6
WHAT WE WILL BE WATCHING THIS WEEK
Various economic reports on the health and direction of the economy:
- ISM Non-Management Services Index – Continued recovery in the service industries?
- U.S. Durable Orders – Manufacturing pace?
- International Monetary Fund’s world economic outlook – Global economic view?
- U.S. Producer-price Index – Inflation watch?
As always, we appreciate your confidence in our team.
Fundamentum Investment Committee
John Nichol, CFA® – Chief Investment Officer
Trevor Forbes – Investment Committee
Robert Armagno – Investment Committee
Christopher A. Silipigno, ChFC® – Investment Committee
Christopher G. King – Investment Committee
Timothy J. Shumsky – Investment Committee
Sources:
1 FactSet – 4/2//2021
2 T. Rowe Price – 4/2/2021
3 FactSet – 4//2/2021
4 FactSet – 4/2/2021
5 CNBC – 4/2/2021
6 Dow Jones News – 4/2/2021
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Investment advice offered through Fundamentum LLC a registered investment advisor. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. There is no assurance that the investment objective of any investment strategy will be attained. Investing involves risk including loss of principal. Past performance is no guarantee of future performance. All indices are unmanaged and may not be invested into directly.
