April 29 Weekly Market Update

Stocks mostly treaded water this week. Corporations have, by and large, reported strong quarterly earnings, but expectations have been so high the market’s response has been muted. However, it can be quite healthy for the market to take a breath after such a strong run.

This week saw record earnings reports from numerous companies, including major cloud computing businesses and electric vehicles manufacturers. Yet, in the eyes of investors, it was not enough. Many of these higher expectation growth stocks had been priced for perfection, and if a company’s revenues and earnings fell short of perfection, its stock price languished.

On the heels of the recently proposed $2 trillion infrastructure plan, the American Jobs Plan, President Joe Biden this week called on Congress to pass another spending plan, the American Families Plan, consisting of $1.8 trillion in investments and tax credits. The crux of the American Families Plan is to aid children, students and families by spending on high-quality child care, college funding and nutrition. It is expected the amount of capital gains taxes paid by the wealthiest Americans will be increased to help pay for this proposal. As a whole, the magnitude of fiscal stimulus either proposed or implemented by the current administration has been astonishing.

Lastly, the Centers for Disease Control and Prevention provided updated and relaxed guidance this week regarding mask wearing for individuals who have been fully vaccinated. Those who have cleared the two-week mark after receiving their final vaccine dose may now attend small outdoor gatherings that include a mix of both vaccinated and unvaccinated individuals. They may also gather indoors with small groups of fully vaccinated friends and family members. This is a small step, but a very important one, as it indicates we are on the path to normalcy. This positive step is not only good for the psyche of the American public, it is also good for the U.S. economy.

Stay safe and be well.

Market comments are based on the S&P 500 Index, which is an unmanaged index that cannot be directly invested into. Past performance is no guarantee of future results. Investing involves risk and the potential to lose principal.

The information provided is for general informational and educational purposes only, and is not a recommendation of any kind or investment advice.

Forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time and cannot be guaranteed.