CWS Market Review – April 19, 2024
“In a roaring bull market, knowledge is superfluous and experience is a handicap.” – Benjamin Graham
For the first time in several months, the stock market is on the defensive. On Thursday, the S&P 500 fell for the fifth day in a row. That’s the longest such streak since October. The index recently dropped beneath its 50-day moving average, and the 200-DMA isn’t far away. Both are classic signs of a tired market.
The Federal Reserve has made it clear that it’s in no hurry to lower interest rates. Can you blame them? Inflation is still a problem, and commodity prices have been on the rise. This week’s retail-sales report showed that shoppers are having no trouble spending money. There are few things the stock market hates more than higher interest rates.
The S&P 500 peaked on the last day of Q1, and April could go down as the worst month for the stock market in over a year. The index is currently -4.6% for the month, but despite the headwinds, some of our stocks are holding up well. Heico, for example, is up 3% this month, and it’s close to a new high.
The big news right now is earnings. This week, we had our first Buy List stock report for this season. Abbott Labs beat expectations, and it raised its guidance higher for both sales and earnings. The company delivered its fifth quarter in a row of double-digit sales increases. I’ll have more on Abbott in a bit.
Next week, eight of our Buy List stocks are due to report. Hold on tight, because this is going to be a busy time for us. I’ll preview them all, but first, let’s look at Abbott’s latest earnings beat.