4/26/2019 Weekly Update: Q1 GDP and Earnings Traffic

Weekly Recap                                                                        

S&P 500                +1.08%

10 Year Treasury   +0.51%

Gold                      +0.83%

Volatility              +5.13%

Weekly Update: Q1 GDP and Earnings Traffic

Another week of Steady Eddie, as markets digest an onslaught of earnings reports from the first quarter.   Amazon, the largest internet retailer, reported earnings yesterday after the close and beat expectations.  The company announced that it is shifting to 1-day free shipping from 2-days for Amazon Prime customers.  This news pummeled Target and Walmart’s shares as the war to gain market share in the online retailing space heats up.  I for one am excited to get my packages a day earlier.  This is an example of free market competition benefiting the consumer! 

The notable economic data point his week was Q1 GDP.   The report issued Friday before the market opened indicated a 3.2% real growth rate, visual aid below.  “Real” in this context means excluding inflation.  Inflation, by the way, was indicated to be at a very subdued 0.9%, which sent bond yields lower and reinforced the idea that the federal reserve can maintain its accommodative interest rate policy stance (keep interest rates low).

Have a good weekend.

Thanks for reading,

Zach and Dave

Calibrate Wealth
515-371-5316  

https://www.calibratewm.com/blog-01

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