Wednesday, 28 April 2021

Markets lower, “stocks still have more upside”

Markets were mostly lower on Tuesday.

The S&P 500 fell less than 0.1 percent, the STOXX Europe 600 fell 0.1 percent and the Nikkei 225 fell 0.5 percent.

US economic data on Tuesday were positive.

Home prices in February rose 12 percent year-over-year, the biggest gain in 15 years, according to the S&P CoreLogic Case-Shiller home price index.

The Conference Board’s consumer confidence index jumped to 121.7, the highest since February 2020.

US corporate earnings reports have also been positive. With about a third of the S&P 500 having reported numbers so far, 84 percent of companies have turned in a positive earnings surprise, according to FactSet.

Jeff Kilburg, chief investment officer at Sanctuary Wealth, said that “we are going to see the FANG stocks deliver and I think that’s the catalyst to continue the trajectory of the S&P 500 to new all-time highs”.

“Strong breadth measures suggest stocks still may have more upside,” said Jeff Buchbinder, equity strategist at LPL Financial.

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