Friday kicked off earnings season with the big banks leading off. The group did trade lower, but closed higher on the week as investors positioned early for the numbers. Speaking of positioning early, Amazon (AMZN) shares were on a tear with a $90 plus gain as the annual Amazon Prime event is set for Monday and Tuesday.
The Nasdaq (QQQ) hit a new record, gaining 1.8% on the week. The S&P 500 (SPY) touched early February highs, ending the week with a gain of 1.5%. The Dow Jones Industrial Average (DIA) was the star performer of the week, up 2.3% and back in positive territory for the year. The small-cap Russell 2000 (IWM) consolidated this week, and dipped by just 0.4%. The big worry over the 10% tariff for $200 billion worth of Chinese goods early in the week faded as has been any initial concerns over global tariff worries.
An added plus for this week’s performance were a result of oil prices pulling back to the $70 level, even in the face of bullish inventory levels. M&A headlines dominated with Broadcom (AVGO) getting the rare Wall Street smack, but got one because the deal for CA Inc. (CA) presented no synergies in Wall Street’s eyes. On the flipside, Walt Disney (DIS) got a nice bounce as fears for a Comcast (CMCSA) bidding war for 21st Century Fox (FOXA) appears to be fading. Defense stocks mounted a comeback with hopes global defense spending will resume to all-time high levels once again. Lockheed Martin (LMT), Northrop Grumman (NOC), and Boeing (BA) went on a nice run.
Next week’s earnings highlights will come from the likes of Microsoft (MSFT), Johnson & Johnson (JNJ), Bank of America (BAC), Netflix (NFLX), UnitedHealth Group (UNH), and General Electric (GE), just to name a few.
Keep Discussing the Important Stuff
I’ve been studying ways to absorb more of the great content I consume as it relates to the investing world and one of the things I keep reading is to absorb material better is to discuss it more. In school, we were taught to memorize a bunch of stuff, that soon thereafter would be forgotten just as quickly. There are geniuses who would argue they forget little, but for most of us, we need to hack the process and discussing the topic of interest is the best way to absorb it. Whenever I get the chance to discuss the markets, I can rattle off with the best of em’. Partly the fact that I enjoy speaking with folks, I also love to garner how others see topics of interest. You’d be surprised how others’ context will often open your mind to different perspectives that maybe hadn’t considered. I live for those discoveries!