April 16, 2019

In this week’s recap: stocks advance after earnings season gets off to an encouraging start, and consumer prices rise the most in more than a year.


Stocks broke out of a narrow range on Friday following news that two major banks grew their bottom line in the first quarter. For the week, the S&P 500 rose 0.79%; the Nasdaq Composite, 0.91%. The Dow Jones Industrial Average improved 0.50%. Turning to overseas stocks, the MSCI EAFE index declined 0.09%.1-4

The market spent much of the week in a lull as investors waited for earnings season to begin. Wall Street is paying close attention to both guidance and profit margins.


Friday, Wells Fargo and JPMorgan Chase both reported Q1 profit growth, and JPMorgan Chase announced record revenue.5

This was welcomed news. Analysts have tempered some of their expectations entering this earnings season, recognizing that slowing global growth, tariffs, and dollar strength may be affecting corporate profits. (The dollar rallied 6.2% in Q1.)6

[Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities.]   


The Consumer Price Index rose 0.4% in March, the most in 14 months. This matched the consensus forecast of economists polled by MarketWatch, who believed rising gas prices would affect the number.

Even with this March jump, annual inflation remained relatively tame at 1.9%.7


Note that U.S. stock and bond markets will be closed on Good Friday (April 19).

Tip of the Week

Life insurance is not solely for people with spouses and kids. If you are a caregiver to an ill parent, have significant debt, or simply wish to avoid having others pay for your funeral, life insurance coverage could prove very important in the event of your passing.


Thursday: March retail sales.

Friday: March housing starts and building permits.

Source: Econoday / MarketWatch Calendar, April 12, 2019
The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision. The release of data may be delayed without notice for a variety of reasons.


Monday: Citigroup (C), Goldman Sachs (GS)

Tuesday: Bank of America (BAC), BlackRock (BLK), Comerica (CMA), IBM (IBM), Johnson & Johnson (JNJ), Netflix (NFLX), UnitedHealth Group (UNH)

Wednesday: Abbott Labs (ABT), Alcoa (AA), Bank of New York Mellon (BNY), Morgan Stanley (MS), PepsiCo (PEP), U.S. Bancorp (USB), United Rentals (URI)

Thursday: American Express (AMEX), Honeywell (HON), Manpower (MAN), Philip Morris (PM), Schlumberger (SLB), Travelers Companies (TRV), Union Pacific (UNP).

Source: Morningstar.com, April 12, 2019.
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
Quote of the Week

“To fly we have to have resistance.”


Riddle of the Week

Name two English words (longer than two letters) that both begin and end with the letters “he”(in that order).

LAST WEEK’S RIDDLE: What is the timepiece with the most moving parts? (It has been around for centuries.)

ANSWER: The hourglass.

Valley Oak Wealth Management can be reached at 415.898.4439 info@valleyoakwm.com or ValleyOakWM.com

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This material does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results.  Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional
1 – quotes.wsj.com/index/SPX [4/12/19]
2 – quotes.wsj.com/index/DJIA[4/12/19]
3 – quotes.wsj.com/index/COMP[4/12/19]
4 – quotes.wsj.com/index/XX/990300/historical-prices[4/12/19]
5 – cnn.com/2019/04/12/investing/wells-fargo-bank-earnings/index.html[4/12/19]
6 – tinyurl.com/y45wuftu [4/12/19]
7 – marketwatch.com/story/higher-gas-prices-boost-cost-of-living-in-march-but-inflation-still-soft-cpi-shows-2019-04-10[4/10/19]
quotes.wsj.com/index/SPX [4/12/19]
quotes.wsj.com/index/COMP [4/12/19]
quotes.wsj.com/index/XX/990300/historical-prices [4/12/19]
markets.wsj.com [4/12/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield [4/12/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yieldAll [4/12/19]