Alphabet and Microsoft Ride to the Rescue

April 29, 2024

Alphabet and Microsoft Ride to the Rescue Photo

U.S. equity markets appeared to be on shaky ground late last Thursday after the release of new economic data suggesting inflation is moving in the wrong direction.1 Meta’s disappointing earnings Thursday evening also contributed to the market setback. The weakness was short-lived, however, as equity markets rebounded Friday after better-than-expected results from Alphabet and Microsoft came out that morning. Two more members of the Magnificent Seven will report their earnings this week, with Amazon on Tuesday and Apple on Thursday.2

This week, investors will have plenty of new information beyond earnings to digest including another two-day Federal Reserve (Fed) meeting starting tomorrow.3 The Fed is almost certain to hold interest rates steady again given the recent uptick in inflation. Fed Chair Jerome Powell’s press conference on Wednesday will be closely watched for clues about the potential timing for interest rate cuts.

Friday’s jobs report is expected to show continued signs of strength, with job gains of 250,000 and the unemployment rate holding steady at 3.8%.4 April would represent the fifth consecutive month with gains in excess of 225,000.5




1Reuters – Wall Street stocks fall as weak GDP growth spreads rate-cut gloom; 4/25/24

2Klipinger – Kiplinger's Earnings Calendar for This Week (April 29-May 3); as of 4/29/24

3,4MarketWatch – U.S. Economic Calendar; as of 4/29/24


Tags: Equity markets | Inflation | Earnings | Federal Reserve | Economic data

< Go to Monday Morning Perspectives

This blog post is for informational use only. The views expressed are those of the author(s), and do not necessarily reflect the views of Penn Mutual Asset Management. This material is not intended to be relied upon as a forecast, research or investment advice, and it is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.

Any statements about financial and company performance of The Penn Mutual Life Insurance Company or its insurance subsidiaries (each, “Client”) made by the author is provided with a written consent from the Client.  Penn Mutual Asset Management is a wholly owned subsidiary of The Penn Mutual Life Insurance Company.

Opinions and statements of financial market trends that are based on current market conditions constitute judgment of the author and are subject to change without notice.  The information and opinions contained in this material are derived from sources deemed to be reliable but should not be assumed to be accurate or complete.  Statements that reflect projections or expectations of future financial or economic performance of the markets may be considered forward-looking statements.  Actual results may differ significantly.  Any forecasts contained in this material are based on various estimates and assumptions, and there can be no assurance that such estimates or assumptions will prove accurate.

Investing involves risk, including possible loss of principal.  Past performance is no guarantee of future results.  All information referenced in preparation of this material has been obtained from sources believed to be reliable, but accuracy and completeness are not guaranteed. There is no representation or warranty as to the accuracy of the information and Penn Mutual Asset Management shall have no liability for decisions based upon such information.

High-Yield bonds are subject to greater fluctuations in value and risk of loss of income and principal. Investing in higher yielding, lower rated corporate bonds have a greater risk of price fluctuations and loss of principal and income than U.S. Treasury bonds and bills. Government securities offer a higher degree of safety and are guaranteed as to the timely payment of principal and interest if held to maturity.

All trademarks are the property of their respective owners. This material may not be reproduced in whole or in part in any form, or referred to in any other publication, without express written permission.

Subscribe to Our Publications