In Markets "In a Nutshell"

Markets “In a Nutshell” for May 28, 2024

Investment Week at a Glance

Stocks finished mixed for the week. The Dow Jones Industrial Average fell 2.30%, the S&P 500 was flat, and the NASDAQ rose 1.40%. Foreign stocks (MSCI EAFE) were down, falling 0.70%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 4.47%.  (Data source: Wall Street Journal)

Strong Earnings Continue

The strong earnings trend continued last week as almost all of the S&P 500 has reported Q1 earnings and 80% have beaten expectations. Last week all eyes were on NVIDIA earnings, and they did not disappoint as the stock jumped 10% and it now has a market cap of over $2.7 trillion. Looking at the overall projections for earnings growth, the S&P 500 is expected to see an 11% increase in year-over-year earnings growth for 2024. This includes 9 of the 11 sectors having positive earnings growth for 2024 as the majority of the market continues to see higher profits through the year. Earnings growth will continue to drive the market higher in the long run if we continue to see these types of numbers every quarter. If earnings growth slows down or even turns negative, the market would begin to decline as valuations would be way too high at current prices. If expectations are right, the market will have more room to run higher.

Bull Market History

Since October of 2022, the market has been in a strong bull market with very few bumps along the way. Over the past year and a half, the S&P 500 is up about 48%, while some may think this is too much in a short time for it to be sustainable let’s look at the average bull market since 1946. The average length of bull markets is 5.6 years, while returns are about 192% over those years. Even if we remove the two longest bull markets, the averages are still 4.3 years and up 125%. History tells us that this market still has room to grow going forward and with the Fed possibly cutting rates this year, it could be the next event to drive markets higher.


How many days is the stock market closed in observance of a holiday? (Scroll Down for Answer)


  1.     6
  2.     8
  3.     10
  4.     12

























Answer below.



Have a Great Week!

















3.    10.  The stock market is closed for 10 holidays, those being… New Year’s Day, Martin Luther King, Jr. Day, Presidents Day (Washington’s Birthday), Good Friday, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.