From Yahoo Finance: 2024-05-05 11:00:24

Investors navigated through a busy week of earnings, economic data, and the Federal Reserve’s policy announcement. The upcoming week will see a slowdown in earnings flow and a quiet economic calendar. Friday’s April jobs report showed slower job growth, reigniting talks of a possible interest rate cut. Strong earnings from Apple boosted market sentiment and the major indexes closed the week positively. Disney’s earnings report will be closely watched, with key themes such as streaming subscriber growth and parks attendance. Uber, Lyft, Reddit, and others will also report earnings. The economic calendar remains light, with consumer sentiment data on Friday as a highlight. Fed officials are set to speak publicly, but Chair Jerome Powell is not scheduled. The jobs report indicated slowing job growth, leading to speculation of a potential rate cut from the Fed. Despite this, the labor market remains healthy, with no signs of mass layoffs. The first quarter earnings season is wrapping up, with better-than-expected results and a positive fundamental story. Companies have surpassed analyst estimates, a rare occurrence that speaks to the market rally’s strength. Apple’s earnings report exceeded expectations, with a rise in revenue expected for the current quarter. Analysts did not lower estimates during the quarter, indicating a positive outlook for companies. Apple’s CFO highlighted rising sales in mainland China, countering negative sentiment. An environment where companies outperform estimates allows for more bullish analyst forecasts.



Read more at Yahoo Finance: What to know this week