Investors are hoping that markets can build some momentum.
The up and down weekly pattern for stocks continued last week as the markets were all positive last week, led by a 2% gain in the Nasdaq Composite.
With several top performing stocks slated to report earnings this week, can markets maintain their momentum?
The Nasdaq, fueled by strong NVIDIA earnings on Wednesday, jumped to 19,114 at weeks end, up 2%. The Nasdaq is down just 1% year-to-date.
The S&P 500 rose 1.9% a week ago to 5,912, while the Dow Jones Industrial Average increased 1.6% to 42,270. The Russell 2000 index also had a solid week, rising 1.3% to 2,066.
The S&P 500 is now in the green, year-to-date, up 0.5%. The Dow Jones is down 0.6% YTD while the Russell 2000 is off 7.2% YTD.
Jobs in focus
This week, jobs come into focus as the ADP monthly report for private sector jobs comes out on Wednesday, followed by the unemployment report, released by the Bureau of Labor Statistics (BLS) on Friday.
The private sector only added 62,000 jobs in April, but economists are expecting more growth in May, calling for 112,000 new private sector jobs.
The BLS reported 177,000 new jobs in April, including public and private sector jobs. Economists expect a slowdown in May, targeting 125,000 new jobs last month.
Also, this week, on Wednesday, the Fed releases the Beige Book report for May, which is a survey of economic conditions. In addition, the U.S. trade deficit for May comes out on Thursday. Economists anticipate the trade deficit to be $90.3 billion, which would be down from 140.5 billion the previous month.
In addition, President Donald Trump is expected to meet with German Chancellor Friedrich Merz on Thursday. It is also reported that Trump will have a phone call with President Xi or China to discuss tariffs.
Dollar General and CrowdStrike on tap
First quarter earnings season is winding down, but there are still some releases of top performing stocks to watch this week.
Most notably, Dollar General (NYSE:DG) reports earnings on Tuesday morning before the opening bell. Dollar General, the discount retailer, has been one of the best performing stocks this year, up about 29%. The stock typically thrives in challenging markets like this, so it is a stock for investors looking for some ballast amid all of the volatility. Analysts predict earnings of $1.48 per share,
CrowdStrike (NASDAQ:CRWD), the enterprise cybersecurity firm, is another big name to report this week, releasing earnings Tuesday after the closing bell. CrowdStrike stock is up 37% YTD. Analysts’ expect earnings of 66 cents per share and revenue of $1.1 billion.
A couple more discount retailers report earnings on Wednesday – Dollar Tree (NASDAQ:DLTR) and Five Below (NASDAQ:FIVE).
Like Dollar General, both Dollar Tree and Five Below are seen as bellwethers for the consumer. They both typically outperform in difficult economic conditions as consumers seek out cheaper prices. Dollar Tree stock is up 20% YTD while Five Below stock has jumped 11% YTD.
Finally, the week ends with a bang as one of the leading semiconductor firms, Broadcom (NASDAQ:AVGO), reports earnings after the closing bell on Thursday. Broadcom stock has posted triple digit returns in each of the past two years. Broadcom stock is up just 4% this year. But that is still beating the markets and most of its competitors.
Analysts are calling for earnings of $1.57 per share, which would be a 44% gain, and revenue of $15 billion, which would be up 20%.
