Making Sense: In Brief
The week ahead for markets and the economy
Blake: Last week, bond yields rose substantially, and investors tempered their expectations for the number of interest rate cuts this year after inflation came in hot for the third consecutive month.
This week, corporate earnings will be moving many of the headlines. Results will come in throughout the week that will give us some insight into how long the ongoing equity market rally might continue.
Since the start of the year, equity prices have soared, even though markets no longer expect the Fed to make big cuts to interest rates this year. Why is this? Markets have grown increasingly optimistic about companies' future earnings. This week, we'll see dozens of earnings releases that will give us some insight into whether that optimism has been warranted.
On the economic data front, the Commerce Department will release its retail sales report on Monday, telling us if ongoing strength in consumer spending continued in the month of March. Excluding the volatile oil and gasoline components, retail sales are expected to have grown by three-tenths of a percent for the second consecutive month.
The housing market will also come into focus this week. On Monday, the National Association of Home Builders releases their housing market index. On Tuesday, we'll see the number for new housing starts and on Thursday, we'll get the number of existing home sales.
Last month, the number of existing home sales rose to 4.4 million, which was the most in a year. But higher mortgage rates have been holding down the number of homes on the market, and over the last few weeks, the typical 30-year fixed rate has risen back up to 7.4%, the highest level since last year.
So items to watch this week. One, corporate earnings. Two, retail sales. And three, housing market data.
Making Sense In Brief Outro Slide
Brent Ciliano
CFA | SVP, Chief Investment Officer
Capital Management Group | First Citizens Bank
8510 Colonnade Center Drive | Raleigh, NC 27615
Brent.Ciliano@FirstCitizens.com | 919-716-2650
Phillip Neuhart SVP, Director of Market and Economic Research
Capital Management Group | First Citizens Bank
8510 Colonnade Center Drive | Raleigh, NC 27615
Phillip.Neuhart@FirstCitizens.com | 919-716-2403
Blake Taylor | Market & Economic Research Analyst
Capital Management Group | First Citizens Bank
8510 Colonnade Center Drive | Raleigh, NC 27615
Blake.Taylor@FirstCitizens.com
Disclosures
The views expressed are those of the author(s) at the time of writing and are subject to change without notice. First Citizens does not assume any liability for losses that may result from the information in this piece. This is intended for general educational and informational purposes only and should not be viewed as investment advice or recommendation for a security, investment product or personal investment advice.
Your investments in securities, annuities and insurance are not insured by the FDIC or any other federal government agency and may lose value. They are not a deposit or other obligation of, or guaranteed by any bank or bank affiliate and are subject to investment risks, including possible loss of the principal amount invested. Past performance does not guarantee future results.
First Citizens Wealth Management is a registered trademark of First Citizens BancShares, Inc. First Citizens Wealth Management products and services are offered by First-Citizens Bank & Trust Company, Member FDIC; First Citizens Investor Services, Inc., Member FINRA and SIPC an SEC-registered broker-dealer and investment advisor; and First Citizens Asset Management, Inc., an SEC-registered investment advisor.
Brokerage and investment advisory services are offered through First Citizens Investor Services, Inc., Member FINRA and SIPC. First Citizens Asset Management, Inc. provides investment advisory services.
Bank deposit products are offered by First Citizens Bank, Member FDIC.
See more about First Citizens Investor Services, Inc. and our investment professionals at FINRA BrokerCheck.
