Wall Street enjoyed a solid week of gains as traders were encouraged by signs of progress in the U.S.–China trade dispute. AI mega caps and several blue-chip names led the advance, and 73% of the S&P 500 companies reporting Q1 results so far have beaten expectations. Ten of the eleven sectors rose, with only consumer staples slipping slightly. Long-term Treasury yields fell for a second straight week, while crude oil prices drifted lower on oversupply concerns and trade-talk uncertainty.
Last Week’s Economic News
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- Durable goods orders jumped 9.2% in March, marking a third consecutive monthly increase.
- New single-family home sales rose 7.4% in March and are up 6.0% versus a year ago; inventory sits at 8.3 months’ supply.
- Existing-home sales declined 5.9% in March and are down 2.4% year-over-year; the median price climbed into the low $400,000s.
- The national average for regular gasoline was $3.14 per gallon on April 21—$0.53 below last April’s level.
- Initial jobless claims ticked up to 222,000 for the week ended April 19; continuing claims fell to 1.84 million.
Eye on the Week Ahead
Keep an eye on the Q1 2025 GDP report (released 4/30), March personal income & outlays (4/30), and the April employment report (5/2), which together could help define the economy’s trajectory heading into the summer.
Have a nice week!
Sincerely,
Robert G. Carpenter