The S&P 500 (SP500) closed on Friday 0.79% higher for the week at 4,137.64 points, registering gains in two sessions, losses in two and ending unchanged in one. Your Companion SPDR S&P 500 Trust ETF (NYSEARCA:SPY) advanced 0.80% for the week.
benchmark performed shakyly on Monday and Tuesday as market participants digested last week Good Friday Jobs Report indicating that the labor market was still tight. Investors were largely uncommitted ahead of the highly anticipated Consumer Price Index report for March on Wednesday.
Inflation, as expected, took some of the spotlight this week, with the CPI report for March followed by the Producer Price Index report on Thursday. Both indicators moderated, with headline CPI down a full percentage point from February and headline PPI posting an unexpected decline.
The data suggested that the Federal Reserve’s aggressive rate hike campaign was having the desired effect of cooling the economy. Adding strength to that narrative, data on Wednesday showed the Atlanta Fed’s trade inflation expectations for the coming year eased.
Also, statistics on Thursday showed the number of Americans filing initial jobless claims in the past week rose, raising hopes of some easing in the highly resilient job market.
Despite several favorable economic data points, Fed speakers remained largely cautious throughout the week. San Francisco Fed President Mary Daly and Fed Governor Christopher Waller said further policy tightening may be warranted. By contrast, minutes of the central bank’s March monetary policy committee meeting released on Wednesday showed that several officials considered pausing rate hikes in light of the recent banking crisis.
According to the CME FedWatch tool, markets now see a ~83% chance of a 25bp hike at the May Fed meeting, followed by a small ~13% chance of another 25bp hike in June.
Investors during the week were also focused on the start of the first quarter earnings season. Delta Air Lines (DAL) posted mixed performance on Thursday but provided upbeat guidance. Big banks took center stage on Friday, with JPMorgan (JPM), Citigroup (C) and Wells Fargo (WFC) beating expectations across the board.
The season will pick up steam next week, with plenty of household names to report including Tesla (TSLA), Netflix (NFLX), Johnson & Johnson (JNJ), Bank of America (BAC), Goldman Sachs (GS), and AT&T. (T).
As for the weekly performance of the S&P 500 (SP500) sectors, seven finished in the green, led by Finance and Energy. Defensive sectors Real Estate and Utilities led the losers. See below for a breakdown of weekly sector performance, as well as the corresponding SPDR Select Sector ETFs from the close on April 6 to the close on April 14:
#1: Finance +2.86%and the SPDR Select Financials ETF (XLF) +2.81%.
#2: Energy +2.47%and the Energy Select Sector SPDR ETF (XLE) +2.65%.
#3: Industrial +2.09%and the Select Industrial Sector SPDR ETF (XLI) +2.11%.
#4: Materials +1.62%and the SPDR Materials Select Sector ETF (XLB) +1.63%.
#5: Consumer discretionary +1.31%and the Select Sector Consumer Discretionary SPDR ETF (XLY) +1.36%.
#6: Health Care +0.71%and the Select Health Care Sector SPDR ETF (XLV) +0.79%.
#7: Communication Services +0.60%and the Select Communication Services Sector (XLC) SPDR Fund +0.51%.
#8: Consumer Staples -0.25%and the SPDR (XLP) Select Consumer Staples Sector ETF -0.24%.
#9: Information Technology -0.37%and the Technology Select Sector SPDR ETF (XLK) -0.28%.
#10: Utilities -1.34%and the Utilities Select Sector SPDR ETF (XLU) -1.32%.
#11: Real Estate -1.45%and the Real Estate Select Sector SPDR ETF (XLRE) -1.35%.
Below is a chart of the YTD performance of the 11 sectors and how they fared against the S&P 500. For investors looking ahead of what’s going on, take a look at Seeking Alpha Catalyst Watch for a breakdown of the actionable events of the coming week that stand out. .
