Summary
The May jobs report comes out this week, as do a few late earnings reports from some big tech and retail names. Last week, the Dow Jones Industrial Average rose 1%, the S&P 500 was up 1.4%, and the Nasdaq popped 2%. Year to date, all three indices are in positive territory, with the DJIA up 6%, the S&P 500 higher by 11%, and the Nasdaq ahead by 16%. On the earnings calendar, highlights this week include Hewlett Packard Enterprise on Monday; Palo Alto Networks, Dollar General, and Ulta Beauty on Tuesday; Broadcom, CrowdStrike, and Medtronic on Wednesday; and Ciena and Lululemon on Thursday. About 96% of S&P 500 companies have reported so far, and overall earnings are up 29% over last quarter. Information Technology, up 56%, and Communication Services, up 51%, are leading the pack. At the bottom are Healthcare, down 3%, and Energy, down 1%, according to LSEG I/B/E/S. On the economic calendar, ISM Manufacturing and Construction Spending are due out on Monday; the Job Openings and Labor Turnover Survey (JOLTS) report on Tuesday; ADP’s private payrolls report on Wednesday; and the May Employment Situation report on Friday. Turning to economic data, gas prices remain elevated but dropped a penny last week, with the average price for a gallon of regular gas now at $4.48. The Atlanta Fed GDPNow forecasts GDP growth of 3.8% for 2Q, compared to the 1.6% actual in 1Q. The Cleveland Fed Inflation Nowcast calls for CPI of 4.2% for May, a step-up from the 3.8% print in April and 3.3% in March. Mortgage rates inched up another two basis points last week, with the average 30-year fixed-rate mortgage now at 6.53%, according to FreddieMac. The next Federal Open Market Committee (FOMC) meeting is on June 17, and will be the first under the chairmanship of Kevin Warsh. Odds are at 0% for a rate move at that meeting. Taking a deeper dive into performance so far in 2026, a leading industrialized global stock market index, the ETF EFA, is up 9% year to date. The leading emerging market ETF (EEM) is up 25% year to date. U.S. growth stocks are up 7% looking at ETF IWF, while value stocks (IWD) are up 12
