Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Stocks

Bank Fear Selloff Gives Way To Earnings Driven Rally – Was Last Week’s Shakeout A Positive Signal?

by April 29, 2023
April 29, 2023
Bank Fear Selloff Gives Way To Earnings Driven Rally – Was Last Week’s Shakeout A Positive Signal?

The markets began last week with a sharp pullback that pushed the broader Indices toward key support, with many individual stocks breaking below support. The drop occurred amid renewed banking fears after Tuesday, when San Francisco-based First Republic Bank (FRC) reported a slump of more than $100 billion in deposits in the first quarter. 

Technology stocks were hardest hit, with Software and Semiconductor stocks down 3% Tuesday as investors sold shares in the face of FRC’s instability. Heavy selling on negative news such as last week will shake out weaker hands, but it can often pave the way for a sustained rally afterward — if market conditions are ripe, that is.

The major Indices were in fact able to find support, led by gains in mega-cap stocks such as Microsoft (MSFT) and Meta Platforms (META), who reported better than expected earnings. Stocks in other areas also drove the markets higher on Thursday and Friday after posting strong quarterly results, while also guiding growth higher for the year.

DAILY CHART OF S&P 500 INDEX

The broad-based rally later in the week not only pushed the S&P 500 back into an uptrend, but it helped improve breadth enough to inject some fuel into the markets. Next week will provide some major hurdles, however, as we head into Wednesday’s FOMC meeting and Powell’s post-meeting speech.

At this time, traders are anticipating a ¼% hike in the Fed Funds rate while also on the lookout for news that the hike will be its last one. Recent inflation reports, such as today’s core Personal Consumption Expenditure (PCE) data — a closely watched report for the Federal Reserve — showed that inflation is drifting lower, but overall, it remains quite sticky. 

As highlighted in the S&P 500 chart above, 1200 is the next area of resistance and, should we move above this level on volume, the current rally may last longer. In addition to next week’s interest rate decision, Apple (AAPL) is due to report earnings on Thursday after the markets close, as will 800 other companies as we head into one of the busiest weeks of earnings season.

If you’d like to be alerted to any shift in my outlook for the broader markets, use this link here to take a 4-week trial of my twice weekly MEM Edge Report for a nominal fee. We stayed with the high quality stocks on our report’s Suggested Holdings List last week, despite cracks in some of the charts. These stocks are now poised to trade much higher, and you’ll receive immediate access to this list as well as in-depth sector and industry group analysis.

Warmly,

Mary Ellen McGonagle MEM Investment Research

0
FacebookTwitterGoogle +Pinterest
previous post
Now That “Stagflation” Has Gone Mainstream
next post
S&P 500 Regains its Uptrend

You may also like

Interest Rates Are on The Rise–And That’s Bad...

July 8, 2023

Look Out Below! The Bear Case For Apple

March 23, 2024

Fed’s Victory Lap and Next Steps for the...

June 14, 2023

S&P 500 Still SUPER Undervalued!

January 24, 2024

January 2024: The Final Bar’s Top 10 Must...

January 9, 2024

MEM TV Special: Characteristics of a New Bull...

October 5, 2022

My Sustainability Ratios Remain Fairly Strong And Suggest...

October 23, 2022

Mish’s Daily: The Four Indices — Where Each...

October 18, 2022

Stock Market Behavior: Separating Signal From Noise

May 22, 2024

Market is Stuck — Which is Extremely Bullish

November 4, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • TSA tells Americans their Costco cards won’t fly at airport security despite love for hot dogs

      June 7, 2025
    • Trump announces China will restart rare earth mineral shipments to US after productive call

      June 7, 2025
    • Musk feud presents ‘unprecedented’ dynamic compared to past Trump disputes: expert

      June 7, 2025
    • Snub of Musk’s NASA nominee ally preceded sudden ‘big, beautiful bill’ criticism, Trump feud

      June 6, 2025
    • Supreme Court rules DOGE can access Social Security information

      June 6, 2025
    • US sanctions money laundering network aiding Iran as regime faces nuclear reprimand at IAEA

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,019)
    • Politics (15,558)
    • Stocks (3,134)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved