ClearWater Market Commentary as of May 10th, 2021

Here is the ClearWater Market Commentary as of May 10th, 2021:

In this issue:
– Performance of Major Indices
– Market Commentary
– Last Week’s Key Economic  
  Events and Upcoming Events

Performance of Principle Indexes: 

S&P/TSX Composite Index
5 Day	1.35%
1 Month	1.27%
YTD	12.26%
1 Year	30.11%

^{As of 2021/04/30 – Source: www.marketwatch.com}

Index Performances	Last 5 Days	YTD
Nikkei 225	2.72%	7.84%
FTSE 100	2.29%	10.36%
Oil ($/bbl)	2.00%	33.60%
Dow Jones Industrial	1.95%	13.63%
S&P/TSX Composite	1.35%	12.26%
CAC 40	1.23%	15.03%
Hang Seng Index	1.17%	5.36%
DAX	1.07%	12.25%
S&P 500	0.95%	12.69%
Russell 2000	-0.33%	14.94%
Shanghai Composite	-0.70%	-1.45%
Nasdaq	-1.03%	6.70%

^{As of 2021/05/07}

Last week’s and next week’s key economic events:
 

US economy (S&P 500 0.95%):

• The rotation out of tech stocks resumed, with the Nasdaq recording its worst weekly loss in two months.
• Earnings seasons continued to wind down over the week, which have generally surpassed analysts’ estimates by a wide margin.
• Although fears of inflation have been a driver of market sentiment, the week finished strong overall as recent data suggests the economy is not growing as fast as some expected; job numbers were much lower than expected.

Canadian markets (S&P/TSX 1.35%):

• In Canada, renewed restrictions have put a snag in the bourgeoning recovery, as highlighted by last month’s job losses.
• More than 560,000 jobs had been added in the prior two months, however, with the domestic economy adding jobs in nine of the last 12 months.
• The Canadian dollar advanced to the highest in more than three years amid broad dollar declines and as a key index of commodities touched a fresh high since 2015. The currency has been outperforming since the Bank of Canada last month signaled it could begin hiking interest rates in late 2022 and cut the pace of its bond purchases

Performance 2021: S&P 500/400/600 Sectors

European and Asian economies:

• Shares in Europe climbed on stronger-than-expected earnings results and growing confidence in an economic recovery.
• Countries such as the Netherlands, Belgium have eased lockdowns as vaccination programs progress. Most European countries have given at least a quarter of their population a single dose of vaccine.
• The European Commission also announced plans to reopen the European Union’s borders again to holiday seekers by June.
• Overall, Economic data continued to point to a broad-based pick up in the Eurozone.
• Japan extended their state of emergency in Tokyo and other prefectures until May 31^st to curb rising coronavirus cases.
• Chinese stocks fell in a holiday-shortened week. 

What to watch this week:

U.S.

• U.S. Energy Information Administration (EIA) Short-Term Energy Outlook.
• U.S. Job Opening and Labor Turnover Survey (JOLTS) Job Openings (March)
• U.S. CPI (April)
• U.S. PPI (April).
• U.S. Retail Sales (April).
• U.S. Industrial Production (April).
• U.S. Preliminary University of Michigan Consumer Sentiment and Expectations Survey (May).
• U.S. Retail Inventories Excluding Autos (March).

• 

Sources: Bloomberg.com,Yardeni.com, Barron’s.com, Factset.com and Newyorkfed.org

Thank-you for checking out our ClearWater Market Commentary for May 10th, 2021. If you would like to receive the ClearWater Commentary at the start of every week, sign-up for our Newsletter.