Market Pulse

Market Pulse

February 26, 2024

Market views heading into the week highlight what we're watching and important news ahead.

A look back

  • Equities more than made up the previous week’s losses as the S&P 500 gained 1.7% and ended the week at a fresh all-time high. International developed stocks lagged but were still up 1.4%.
  • The curve inversion extended to its deepest level of 2024 as the 10-year U.S. Treasury yield dropped a couple basis points to 4.25% and the 2-year yield ticked up to 4.68%.
  • In a light week on economic data, investors were primarily focused on fourth quarter earnings reports. Markets were especially fixated on a notable tech company that shattered high expectations to drive broad gains on Thursday.

A look ahead

  • The Federal Reserve’s (Fed) preferred inflation gauge, Core Personal Consumption Expenditures (PCE), will be released. Central bankers will look for signs of cooling prices after recent inflation data has been hotter than expected.
  • An updated measure of fourth quarter GDP will be released after the initial estimate showed 3.3% growth, ahead of consensus expectations.
  • Economic releases: New Home Sales, Durable Goods Orders, GDP, PCE, Pending Home Sales, U. of Michigan Consumer Sentiment.

Fourth quarter earnings update

Fourth quarter earnings season has been mixed with 79% of S&P 500 companies having reported results. On the plus side, the index is on track for 3.2% earnings growth, ahead of the expected 1.5%, and eight sectors are on pace to grow more than consensus estimates. However, the 75% of companies that beat their individual estimate is below the 5-year average of 77% per quarter.  

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