Both spring and a post-pandemic economic reopening were in the April air, and markets generally responded by climbing higher. Renewed enthusiasm for technology shares and growing optimism about the global recovery helped drive the S&P 500 past 4,000 for the first time early in the month.

For all of April, the S&P was up 5.2%, the Dow 2.7%, and the Nasdaq more than 5%. For the year, that brought the gains to 11.3%, 10.7%, and 8.3%, respectively; the best start for stocks in a new presidential term since the Great Depression, according to a story in The Wall Street Journal (April 29, 2021).

There were reasons to be hopeful. March retail sales jumped nearly 10%, well ahead of expectations of 6.1%. Personal income increased by 21.1%, the most in monthly records going back to 1946. The Institute for Supply Management (ISM) reported the fastest growth on record for the services industry, with the index hitting 63.7, up from 55.3 the month before. First quarter GDP turned in a strong performance, up 6.4%. (Source: FactSet, April 30, 2021)

On the Covid-19 front, vaccinations continued to rollout, in spite of a temporary setback for Johnson & Johnson. (Bloomberg reported in early May that enough vaccinations had been administered to cover 40% of the U.S. population.) This fueled optimism and, partly as a result, the S&P 500 had hit its 19th record for the year by the end of April’s first week.


Corporate earnings provided further support for the upward trend. At month-end, with 60% of the companies in the S&P 500 reporting, FactSet pegged the 1Q “blended earnings growth rate” for the S&P 500 at 45.8%. Eighty-six percent of reporting companies surprised to the upside. Valuations, though still high, declined on the heels of this with the forward 12-month price-to-earnings ratio falling to 22x, compared to a five-year average of 17.9 (also according to FactSet).

Analysts are expecting more good news heading into 2Q. FactSet’s aggregation of median earnings estimates for the period was marked up by 4.2%, according to the April 30 report. More typically, estimates are lowered during a quarter’s first month, according to the research firm.


With apologies to the Emmy-award winning television show, Billions , it might be time for a new name. These days, it’s all about trillions. During the month, the Biden Administration proposed more than $4 trillion in new spending, including $2.25 trillion for infrastructure and a $1.8 trillion plan focused on education child care for families. This is to be paid for with, among other things, a proposal to nearly double the capital gains tax for some investors to 39.6% and higher income taxes on the “wealthy.”

This potential fiscal stimulus, in tandem with the Fed’s low rate policies, continues to fuel inflation concerns. Home prices stayed on the front foot, with the S&P CoreLogic Case-Shiller Index rising 12.0% in February (the most recent data available) on an annualized basis. Commodities prices also climbed; the cost of lumber has lately jumped more than 190% to more than $1,000 per thousand board feet, while prices for some industrial metals like copper hit multi-year highs.

Weighing against this for the moment is the Fed’s focus on job creation and the fact that the labor market is still about eight million jobs short of the pre-pandemic high. While the March employment report was strong – 916,00 jobs created – that was tempered by a disappointing April and a subsequent downward revision to the March numbers (777,000 jobs).

Fed Chairman Powell and company have so far shrugged off the signs that inflation may be rising, characterizing the phenomena as “transient” and sticking with the pledge to keep rates low. Nonetheless, investors will be watching this closely in the coming months as one of the key determinants of future market returns.

Past performance is no guarantee of future results, which will vary. All investments are subject to market risk and will fluctuate in value.

This material represents an assessment of the market environment at a specific date; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any issuer or security in particular.

The strategies discussed are strictly for illustrative and educational purposes and are not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. There is no guarantee that any strategies discussed will be effective.

This material contains general information only and does not take into account an individual's financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decision.

The S&P 500® Index is widely regarded as the standard index for measuring large-cap U.S. stock market performance.

The Dow Jones Industrial Average , Dow Jones, or simply the Dow , is a stock market index that measures the stock performance of 30 large companies listed on stock exchanges in the United States.

Nasdaq is used to refer to the Nasdaq Composite, an index of more than 3,000 stocks listed on the Nasdaq exchange The Nasdaq Composite contains all of the companies that trade on the Nasdaq. Most are technology and internet-related, but there are financial, consumer, biotech, and industrial companies as well.

The S&P  CoreLogic Case - Shiller  U.S. National Home Price  Index  tracks the value of single-family housing within the United States. 

“New York Life Investments” is both a service mark, and the common trade name, of certain investment advisors affiliated with New York Life Insurance Company. IndexIQ® is an indirect wholly owned subsidiary of im体育推荐官网 Holdings LLC and serves as the advisor to the IndexIQ ETFs. ALPS Distributors, Inc. (ALPS) is the principal underwriter of the ETFs. NYLIFE Distributors LLC is a distributor of the ETFs. NYLIFE Distributors LLC is located at 30 Hudson Street, Jersey City, NJ 07302. ALPS Distributors, Inc. is not affiliated with NYLIFE Distributors LLC. NYLIFE Distributors LLC is a Member FINRA/SIPC.


友情链: IM体育在线平台-im体育官im体育官网 苹果版 | im体育手机版入口 - im 体育赛事比分 苹果版 | 2022im体育平台网页-赔率滚球-2022im体育半决赛最新版 | IM·体育视频比分观看-IM·体育今日今晚平台-im体育app平台下载 | im体育app平台下载|IM体育v2.3 安卓版|IM体育今天官网赛表 | im体育推荐官网_im体育今晚高清_im体育买软件 | 2022im体育网网址_分析观看比赛_2022im体育在线软件 |