- The major U.S. equity indices were slightly positive in April. The Dow Jones Industrial Average gained 0.2%, the Nasdaq Composite rose 0.1%, and the S&P 500 returned 0.4%. Though the threat of a trade war has been dissipating, inflation concerns have held the market back.
- S&P 500 earnings growth remains strong. With a majority of companies reporting their Q1 results in April, 80% have reported EPS above estimates. Q1 earnings were up 25% year-over-year. Revenue growth has been strong, up 8% and net profit margins improved to 11%. Tax cuts were a key driver to margin improvement.
- Yields on the benchmark 10-Year Treasury Note reached an intraday high of 3.0% on April 25. The 10-Year last reached 3.0% in 2014. Higher yields make bonds more attractive and may present a headwind to the equity markets.
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