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Summary
Another down week for markets
JP Morgan Earnings
Market Outpreformer: Apple Rebound?
CPI Report
The Market
This past trading week, the market had a down week, with the S&P 500 dropping 1.69% and the Dow Jones dropping 2.40%. This continues a downtrend that started last week.
JP Morgan and Chase (JPM) reported earnings on the 12th, while it beat expectations for earnings and revenue it didn't for net interest income, causing its stock to tank 6.47% on Friday. This is a huge break from the steady uptrend it followed for most of the last year. Such a big firm should be able to recover from this hit, but we are still wary of this stock.
Apple Inc (AAPL) outperformed the market this week growing 4.37% this trading week. Recently traders have been bearing on Apple due to their lawsuits and underperformance, but things may be looking up for it. This week Apple hit a double bottom, an indicator of a reversal of their downtrend. We can see this in the days following the double bottom with the price shooting up, because of this new trend we are now bullish on Apple.
Another stock we have been keeping our eye on is Eaton Corporation (ETN). While it underperformed this week, on the last day of the week it rebounded. It has had a steady uptrend for most of its history. We are bullish on ETN and hope to see it grow in the future.
CPI Report
On the 10th, the US Bureau of Labor Statistics released its monthly CPI report. The CPI measures the change in the price of goods, so the CPI increase signals inflation, and if it is decreasing it means deflation. The CPI rose 3.5% in March, meaning inflation has accelerated. Kansas City FED President Jeffrey Schmid said that he would like for inflation to dip down to 2% before considering any rate cuts. Continued high-interest rates may be a negative thing for the markets, and this news might be a contributing factor to the recent down weeks we have experienced.
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