It was another bullish week for the S&P 500 as it closed Friday at a record high of 7,398. After the previous Fridays record close, the markets took a well-deserved breather on Monday with the S&P 500 off about -0.4%. On Tuesday the bull returned, and with 85% of the S&P 500 companies having already reported earnings, 77% have delivered an upside revenue surprise. After Tuesdays close, Advanced Micro Devices (AMD) beat expectations on the top and bottom lines and issued a rosy outlook for the second quarter, calling for about $11.2 billion in revenue. On Wednesday AMD popped 16%, the S&P 500 had a daily gain greater than 1%, and the NASDAQ 100 tacked on over 2%. Also check out Intels (INTC) breakout. Thursday was similar to Mondays breather day with another loss of about -0.4%. However, before Fridays opening bell the Aprils jobs report showed that nonfarm payrolls rose by 115,000 last month, more than the expected 55,000, while the unemployment rate held steady at 4.3%. That was all the bull needed to hear as the S&P 500 crossed into 7,400 territory around midafternoon, before closing at another record high at 7,398.92 (almost!!). From a technical perspective we now have six consecutive up weeks for both the S&P 500 and NASDAQ 100, with support from higher highs and higher lows on the weekly Heikin Ashi candle chart. For next week we get inflation numbers on Tuesday and Wednesday, and earnings season slows down. For TSP TIPS we had a Jackpot Day on Wednesday as all three equity funds (C/S/I) hit new record highs, and all three finished the week with Composite Scores of 100 again. That said, lets dig deeper. This week the I fund gained 3.00%, C gained 2.36%, and the S fund gained 1.05%. And it just so happens that this order is the same as the Performance Ranking order. The I fund remains at the top of the leaderboard, increasing its lead over the runner up, which is now the C fund, which overtook the S fund this week. As such, we are recommending no changes in the Aggressive model since we are already in the I fund, and no change in the Conservative model since the reallocation would be less than 5%. However, we are recommending a new investment mix for the Moderate model, moving the allocation from the S fund to the C fund. This is the first reallocation in May for the Moderate model, with two remaining for the Aggressive and Conservative models.
It was another bullish week for the S&P 500 as it closed Friday at a record high of 7,398. After the previous Fridays record close, the markets took a well-deserved breather on Monday with the S&P 500 off about -0.4%. On Tuesday the bull returned, and with 85% of the S&P 500 companies having already reported earnings, 77% have delivered an upside revenue surprise. After Tuesdays close, Advanced Micro Devices (AMD) beat expectations on the top and bottom lines and issued a rosy outlook for the second quarter, calling for about $11.2 billion in revenue. On Wednesday AMD popped 16%, the S&P 500 had a daily gain greater than 1%, and the NASDAQ 100 tacked on over 2%. Also check out Intels (INTC) breakout. Thursday was similar to Mondays breather day with another loss of about -0.4%. However, before Fridays opening bell the Aprils jobs report showed that nonfarm payrolls rose by 115,000 last month, more than the expected 55,000, while the unemployment rate held steady at 4.3%. That was all the bull needed to hear as the S&P 500 crossed into 7,400 territory around midafternoon, before closing at another record high at 7,398.92 (almost!!). From a technical perspective we now have six consecutive up weeks for both the S&P 500 and NASDAQ 100, with support from higher highs and higher lows on the weekly Heikin Ashi candle chart. For next week we get inflation numbers on Tuesday and Wednesday, and earnings season slows down. For TSP TIPS we had a Jackpot Day on Wednesday as all three equity funds (C/S/I) hit new record highs, and all three finished the week with Composite Scores of 100 again. That said, lets dig deeper. This week the I fund gained 3.00%, C gained 2.36%, and the S fund gained 1.05%. And it just so happens that this order is the same as the Performance Ranking order. The I fund remains at the top of the leaderboard, increasing its lead over the runner up, which is now the C fund, which overtook the S fund this week. As such, we are recommending no changes in the Aggressive model since we are already in the I fund, and no change in the Conservative model since the reallocation would be less than 5%. However, we are recommending a new investment mix for the Moderate model, moving the allocation from the S fund to the C fund. This is the first reallocation in May for the Moderate model, with two remaining for the Aggressive and Conservative models.