Weekly Market Insights | Positive Indicators Lift Stocks into May

Stocks pushed higher last week as investors cheered the White House’s constructive comments on trade, upbeat Q1 corporate reports, and April jobs data came in above expectations. 

Last week, the Standard & Poor’s 500 Index gained 2.92 percent closing at 5,686.67, while the Nasdaq Composite Index rose 3.42 percent closing at 17,977.73. The Dow Jones Industrial Average added 3.00 percent closing at 41,317.43. The MSCI EAFE Index, which tracks developed overseas stock markets, advanced 2.56 percent.^1,2

Longest Winning Streak in 20 Years

During the first two trading days, stocks increased as investors responded favorably to White House comments on tariff deals.³

Then midweek—on the last day of the month—fresh data showed the economy contracted by 0.3 percent in Q1—the first decline in gross domestic product (GDP) in three years. Stocks initially fell on the news, but staged a stunning recovery to add a seventh day to the S&P 500’s and Dow Industrial’s winning streaks.⁴

Q1 corporate reports from a couple of mega-cap tech companies boosted all three major averages over the next session, with Nasdaq leading the rise. By Thursday’s close, Nasdaq had returned to its pre-April 2 levels.⁵

The rally accelerated on Friday as a better-than-expected April jobs report eased some concerns about the economy’s strength. Signs of a potential thaw in Washington-Beijing trade relations also boosted enthusiasm. The Dow Industrials rose for a ninth straight session, as did the S&P 500—its longest winning streak in 20 years.⁶

Solid Jobs Report

Data released Friday by the Bureau of Labor Statistics showed total nonfarm payrolls rose by 177,000 in April, surpassing the consensus estimate compiled by Bloomberg for a 138,000 increase. The unemployment rate was steady at 4.2% in April, in line with the market view.

By sector, industrials had the largest percentage increase of this week, climbing 4.3%, followed by a 4.2% rise in communication services and a 4% advance in technology. Financials and real estate were also strong, up 3.6% and 3.4%, respectively.

Carrier Global (CARR) had the largest weekly percentage increase among industrials, climbing 19% as the company posted Q1 adjusted earnings per share and revenue above analysts' mean estimates. Carrier Global also boosted its 2025 adjusted EPS outlook and said it now sees full-year sales at the top end of its prior guidance range.

In communication services, Meta Platforms (META) was the top gainer. The Facebook parent's shares rose 9.1% as the company, which also owns WhatsApp and Instagram, reported stronger-than-expected first-quarter results and projected revenue growth for the ongoing three-month period on a sequential basis.

Energy was the lone sector that posted a weekly decline, slipping 0.7%. The sector's drop came as crude oil futures fell on the week. Decliners included Targa Resources (TRGP), whose shares fell 8.9% as the company reported Q1 net income and revenue below consensus views.

Next week's earnings calendar features Advanced Micro Devices (AMD), Uber Technologies (UBER), Walt Disney (DIS), Shopify (SHOP) and ConocoPhillips (COP).

Economic data will include the March trade deficit, consumer credit and wholesale inventories, and Q1 productivity. Also, the Federal Reserve's Federal Open Market Committee will hold a two-day meeting, concluding with a press conference.

This Week: Key Economic Data

Monday: ISM Services Index. PMI Composite (final).

Tuesday: Trade Deficit. FOMC meeting – Day 1.

Wednesday: FOMC meeting – Day 2. Fed Decision / Fed Chair Powell Press Conference. Consumer Credit.

Thursday: Jobless Claims. Productivity & Costs. Wholesale Inventories. Fed Balance Sheet.

Friday: Fed Officials speak: Austan Goolsbee (Chicago Fed President), John Williams (New York Fed President) and Beth Hammack (Cleveland Fed President).

^{Source: Investors Business Daily - Econoday economic calendar; May 2, 2025
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Monday: Palantir Technologies Inc. (PLTR), Vertex Pharmaceuticals Incorporated (VRTX)

Tuesday: Advanced Micro Devices, Inc. (AMD), Arista Networks, Inc. (ANET), Duke Energy Corporation (DUK)

Wednesday: Uber Technologies, Inc. (UBER), The Walt Disney Company (DIS), AppLovin Corporation (APP)

Thursday: Shopify Inc. (SHOP), ConocoPhillips (COP), McKesson Corporation (MCK)

^{Source: Zacks, May 2, 2025. Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

"Lots of people want to ride with you in the limo, but what you want is someone who will take the bus with you when the limo breaks down."

– Oprah Winfrey

Not All Third-Party Payroll Service Providers Are Equal

Be sure to ask your payroll company how it handles payroll tax. A business needs to pick this service wisely because failing to do so could contravene IRS guidelines. 

To avoid missed deposits for employment taxes and other important bills, here are some choices to help ensure business owners have a trusted payroll service:

• Use a certified professional employer organization.
• Use a reporting agent.
• Enroll in the Electronic Federal Tax Payment System (EFTPS) to ensure your payroll service providers use EFTPS to max tax deposits. This free platform gives employers quick access to their payment history for deposits under their EIN. 

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional. 

Tip adapted from IRS⁹

Celebrate Summer With This Fresh Salad

The weather is heating up, so cool down with this tasty, healthy, fresh watermelon salad!

Ingredients

• 5 cups of cubed watermelon
• 1 cup of diced cucumber
• ¼ cup thinly sliced red onions
• ⅓ cup crumbled feta cheese
• 1 avocado, cubed
• ⅓ cup torn mint or basil leaves
• Sea salt

For the dressing

• 2 tablespoons extra-virgin olive oil
• 3 tablespoons lime juice
• ½ garlic clove, minced
• ¼ teaspoon sea salt

Whisk together all the dressing ingredients in a small bowl and set aside. Arrange the watermelon, cucumber, and red onions and drizzle with half the dressing. Then, add the feta, avocado, and mint. Drizzle with the rest of the dressing. Salt to taste and serve.

Tip adapted from Love and Lemons¹⁰

A word appears, and six letters it contains. Subtract only one, then twelve remains. What is this word?

Last week’s riddle: It has dozens of fine teeth, but you can hold it in your hand, and it will never bite you. What is it?
Answer: A comb.

Motukorea Island
Hauraki Gulf, Auckland, New Zealand

Footnotes and Sources

^{1. The Wall Street Journal, May 2, 2025}

^{2. Investing.com, May 2, 2025}

^{3. CNBC.com, April 29, 2025}

^{4. The Wall Street Journal, April 30, 2025}

^{5. CNBC.com, May 1, 2025}

^{6. CNBC.com, May 2, 2025}

^{7. MarketWatch.com, May 2, 2025}

^{8. CNBC.com, May 2, 2025}

^{9. IRS.gov, November 18, 2024}

^{10. Love and Lemons, December 12, 2024}

^{11. MT Newswires and Ycharts.com, Apr. 28 - May 2, 2025}