Weekly Market Recap — April 27, 2012
(For the week ended April 27, 2012.)
Stocks were rattled early in the week by economic uncertainty in Europe, but the major U.S. indexes recovered and closed higher, buoyed by a host of better-than-expected corporate earnings reports. News of strong profits at AT&T and 3M Company helped boost the Dow and the S&P 500 Tuesday, while upbeat reports from Apple, Boeing, and Citrix fueled the momentum in subsequent days. Investors were also encouraged by comments from Federal Reserve Chairman Ben Bernanke that the central bank is prepared to do more to stimulate the economy if necessary. On Friday, better-than-expected earnings at Amazon and Expedia offset a weaker-than-expected reading on first-quarter real GDP.
|1 Week||YTD||1 Year||Closing Value|
|Dow Jones Industrials||1.5%||8.3%||3.6%||13,228.31|
Source: Standard & Poor’s. The S&P 500, Dow Jones Industrials, and Nasdaq Composite are unmanaged indexes. It is not possible to invest directly in an index. Past performance is no guarantee of future results.
*Price only. Does not include dividends.
Euro watch Holland and France are the latest countries to take center stage in Europe’s sovereign debt crisis. Dutch bond yields soared after budget deficit talks collapsed and the country’s prime minister resigned. French bond yields also rose, due to concerns that Socialist presidential candidate Francois Hollande may defeat President Nicolas Sarkozy and complicate efforts to address the euro-zone debt crisis.
Slower growth Real GDP rose 2.2% (annualized) in the first quarter, a much weaker rate than the 2.5% gain expected by consensus. Consumer spending rose at a 2.9% rate, which was stronger than the 2.1% pace seen in the fourth quarter.
Week ahead Hoping for data that might hint at better economic growth in the second quarter, markets will focus on employment and consumer spending data. Manufacturing data will also be watched closely as markets gauge whether or not the sector will hold its momentum this year.