The last week of April was a big news week. A very weak first quarter GDP highlighed a busy economic calendar. Investors digested a flurry of earnings reports, including some of the biggest names, such as Apple, Amazon, Facebook, and Microsoft. Gilead Sciences released promising test results for a COVID-19 treatment, a positive step in potentially limiting the human and economic impact of the virus as some states began to reopen their economies. Finally, we heard from three major global central banks. 

In the News

Stocks bounced early the week of April 27, but limped to the finish. The S&P 500 Index ended

Last week was a big week for central banks, as the Bank of Japan, European Central Bank, and Federal Reserve all had meetings. What we know is each central bank is doing all they can to help bring back confidence and liquidity, while likely keeping rates very low for a long time.

Please view our recent Street View video for more color on central banks.

Last, please read our recent blog for more on this subject.

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Index Performance – week ending 5/1/2020:

S&P 500:  -.21%
Dow Jones Industrial Average:  -.22%
Nasdaq Composite:  -.34%

Equities

US equities were little changed this week, as poor economic data continued to roll in and overall better than expected earnings from technology bellwethers failed to fuel further gains. The S&P 500 Index closed out April with a 12.7% gain, its best month since January 1987 and the largest increase for April since 1938.

“April was a historic rally for stocks, but the worries continue to add up,” explained LPL Financial Senior Market Strategist

It is a foregone conclusion that the US economy has entered recession, led by the consumer, which accounts for more than two-thirds of the US economy based on gross domestic product (GDP). The collapse of consumer spending was evident in March personal consumption expenditures data released on Wednesday that showed a record 7.5% month-over-month drop in consumer outlays. It would have been worse if we weren’t stocking our refrigerators and pantries.

The manufacturing sector is also contracting sharply, not surprisingly given the business shutdowns that began in March. Investors had a glimpse of the extent of the hit to manu