The major averages recorded a second consecutive positive week, following the ceasefire with Iran. Since last Friday’s close the S&P 500 gained 234 points or 3.56%, the NASDAQ jumped 1,024 points or 4.68% while the DOW advanced 1,412 points or 3.04%.

Economic Data

Came in mixed the March employment report was nearly triple expectations. After the BLS reported 178,000 new jobs were created. The unemployment rate dipped to 4.3%. Average hourly earnings continue to outpace inflation, up 3.5% over the last 12-months. Durable Goods Orders slipped 1.4% in March. The proxy for business spending non-defense capital goods ex aircraft advance 1.5% for the month. Rounding out the list the CPI jumped .9% in March on a surge in energy costs to 3.3% annualized following the war with Iran. No real surprises in the data despite a few disappointments.

Where’s The Money

The latest Q1 earnings estimates for the S&P 500 complements of FactSet Research show estimates approaching 20%. Following a report released today pegging earnings growth of 19% a nearly 5-year high for the index. Despite the markets ceasefire inspired rally. It remains tentative and unstable with the various expects noting that its durability is far from certain. Violations by both sides particularly by Iran and Israel have been cited. Calling into question the original 2 week proposed duration of the agreement. Casting doubt as to a 3^rd consecutive weekly gain for the major averages. Following the ceasefire with Iran.

Have a great weekend, I’ll be back next Friday.