Weekly Market Insights | Positive Indicators Lift Stocks into May
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Stocks pushed higher last week as investors cheered the White House’s constructive comments on trade, upbeat Q1 corporate reports, and an encouraging jobs report. The Standard & Poor’s 500 Index gained 2.92 percent, while the Nasdaq Composite Index rose 3.42 percent. The Dow Jones Industrial Average added 3.00 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, advanced 2.56 percent.1,2 Longest Winning Streak in 20 Years During the first two trading days, stocks increased as investors responded favorably to White House comments on tariff deals.3 Then midweek—on the last day of the month—fresh data showed the economy contracted by 0.3 percent in Q1—the first decline in gross domestic product (GDP) in three years. Stocks initially fell on the news, but staged a stunning recovery to add a seventh day to the S&P 500’s and Dow Industrial’s winning streaks.4 Q1 corporate reports from a couple of mega-cap tech companies boosted all three major averages over the next session, with Nasdaq leading the rise. By Thursday’s close, Nasdaq had returned to its pre-April 2 levels.5 The rally accelerated on Friday as a better-than-expected April jobs report eased some concerns about the economy’s strength. Signs of a potential thaw in Washington-Beijing trade relations also boosted enthusiasm. The Dow Industrials rose for a ninth straight session, as did the S&P 500—its longest winning streak in 20 years.6 |
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Solid Jobs Report The April jobs report showed employers added 177,000 jobs last month—34,000 more than economists expected. The report quieted talk about a recession, which was welcomed news. The April figure also showed the economy was still adding jobs despite a sluggish Q1 GDP report. However, the strong report did prompt some traders to push out expectations for an interest rate adjustment until the Fed’s July meeting.7,8 This Week: Key Economic Data Monday: ISM Services Index. PMI Composite (final). Tuesday: Trade Deficit. FOMC meeting – Day 1. Wednesday: FOMC meeting – Day 2. Fed Decision / Fed Chair Powell Press Conference. Consumer Credit. Thursday: Jobless Claims. Productivity & Costs. Wholesale Inventories. Fed Balance Sheet. Friday: Fed Officials speak: Austan Goolsbee (Chicago Fed President), John Williams (New York Fed President) and Beth Hammack (Cleveland Fed President). Source: Investors Business Daily – Econoday economic calendar; May 2, 2025 This Week: Companies Reporting Earnings Monday: Palantir Technologies Inc. (PLTR), Vertex Pharmaceuticals Incorporated (VRTX) Tuesday: Advanced Micro Devices, Inc. (AMD), Arista Networks, Inc. (ANET), Duke Energy Corporation (DUK) Wednesday: Uber Technologies, Inc. (UBER), The Walt Disney Company (DIS), AppLovin Corporation (APP) Thursday: Shopify Inc. (SHOP), ConocoPhillips (COP), McKesson Corporation (MCK) Source: Zacks, May 2, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice. |
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“Lots of people want to ride with you in the limo, but what you want is someone who will take the bus with you when the limo breaks down.” – Oprah Winfrey |
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Not All Third-Party Payroll Service Providers Are Equal Be sure to ask your payroll company how it handles payroll tax. A business needs to pick this service wisely because failing to do so could contravene IRS guidelines. To avoid missed deposits for employment taxes and other important bills, here are some choices to help ensure business owners have a trusted payroll service:
This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional. Tip adapted from IRS9 |
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Celebrate Summer With This Fresh Salad The weather is heating up, so cool down with this tasty, healthy, fresh watermelon salad! Ingredients
For the dressing
Whisk together all the dressing ingredients in a small bowl and set aside. Arrange the watermelon, cucumber, and red onions and drizzle with half the dressing. Then, add the feta, avocado, and mint. Drizzle with the rest of the dressing. Salt to taste and serve. Tip adapted from Love and Lemons10 |
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A word appears, and six letters it contains. Subtract only one, then twelve remains. What is this word? Last week’s riddle: It has dozens of fine teeth, but you can hold it in your hand, and it will never bite you. What is it? |
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Motukorea Island |
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Footnotes and Sources 1. The Wall Street Journal, May 2, 2025 |
