Investment Week at a Glance
Stocks finished higher for the week. The Dow Jones Industrial Average rose 1.6%, the S&P 500 was up 1.7%, and the NASDAQ rose 2.1%. Foreign stocks (MSCI EAFE) were also up for the week rising 1.6%. Bond prices were up for the week, with the 10-year U.S. Treasury ending the week at 4.00%. (Data source: Wall Street Journal)
Earnings Season Underway
Earnings season is underway, and 12% of the S&P 500 have already released their reports. Of the 12%, 85% have beaten earnings expectations as companies continue to perform well. The current forecast for 2025 earnings is 10.5% growth year-over-year, and expectations are that earnings will accelerate to 13% in 2026. Strong earnings growth is a good sign for markets in the long term, and investors are hopeful the trend continues. Earnings growth this year has been driven by technology and AI companies as the AI boom has captured the market.
Oil Prices Fall to 5-Year Low
Oil prices continue to move lower as U.S. crude oil barrels fall below $57 per barrel. The price decline has come as global inventory is at a 4-year high at 7.9 billion barrels of oil. Oil is now down over 20% for the year, and the decline in energy prices has helped keep inflation from really seeing any substantial increase. The average price of gasoline is just over $3 across the country, with 32 states having an average price below $3.
American Express Beats Earnings Expectations, Rises 7%
American Express reported earnings last week and beat expectations, which led to the stock rising more than 7%. The company highlighted the strength of wealthy Millennials and Gen Z, which now make up 36% of total card member spending. The report also gives insight into how the higher-end consumer is still spending freely and not slowing down. This is important for the overall economy as the top 10% of households account for 50% of consumer spending according to Moody’s. (CNBC)
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Quiz
How much has gold increased in value this year? (Scroll Down for Answer)
- 39%
- 47%
- 56%
- 60%
Answer:
- 60%, Gold continues its rapid rise as it is now up over 60% for the year and nearing $4,300 per ounce.
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