Markets were closed today in observance of Good Friday. On the week, the Dow gained 0.6% while the S&P 500 declined 0.1%. Earnings season started off in a better-than-expected fashion. So far, 74% of companies that have reported earnings exceeded analyst estimates. Next week is a big week for earnings with almost a third of the S&P 500 companies reporting. We’re also expecting the initial reading on 1st quarter economic growth. It is expected to show the economy slowed down from prior quarters, but still grew at an annualized rate in excess of 2%.
A good weekend for Tiger Woods turned into a great week for Nike. Sunday afternoon, Tiger Woods won The Masters for the 5th time, but his first since 2005. He hadn’t won any major tournament since 2008. With Woods in the hunt, TV ratings were up over last year and marketing experts estimated Nike received over $20 million in advertising value based on how often its iconic swoosh was seen on Tiger’s shirt and hat. Nike’s market value increased by $2 billion following the win when markets opened Monday morning. It’s not uncommon to see Nike stock move up/down based on the performance of its athletes. Earlier this year when Duke basketball star Zion Williamson blew out his Nike shoe on national television, the stock lost over $1 billion in value. Other company’s connected to Woods such Monster Energy Drinks, Callaway and Bridgestone all saw their value increase 1% or more following Woods’ victory. Read More
Oil decreased 0.2% this week to close at $64.00/barrel. The yield on the 10-yr Treasury moved higher, closing at 2.56% from 2.55% last week. The average rate on a 30-yr fixed rate mortgage moved higher, to 4.17% from 4.12% a week ago.