Crude Crosswinds: Stocks Follow Oil Up, Then Down

By Joe Mazzola

(Monday market open)

Stocks start the first full week of May near record highs but retreated early as crude rose on media reports of confrontations between ships in the Persian Gulf. Crude came off highs and stocks took back some losses as the open approached and fresh news reports calmed investors. The wobbly start precedes a gauntlet of key data and earnings this week, notably Friday's April nonfarm payrolls report.

Before this morning's pressure, investors seemed to ignore oil and focus mainly on corporate results. With 63% of S&P 500 companies reporting through Friday, blended earnings growth—including companies reporting and estimates for the rest—is an outstanding 27.1%, FactSet said. This would be the highest in more than four years. About 81% of reporting companies have beaten earnings estimates. Much of the growth was fueled by tech, but other sectors also delivered, including discretionary, materials, and financials.

Fresh tech earnings start this afternoon as Palantir (PLTR) reports. Semiconductors come into play with Advanced Micro Devices (AMD) late tomorrow and Arm Holdings (ARM) Wednesday. Wednesday also includes a visit to Walt Disney (DIS), and in all, 20% of S&P 500 companies report this week Indexes mainly climbed Friday, led by tech, but most sectors fell. "While uncertainty around Iran and the trajectory of oil prices persists, investors appear willing to overlook that potential risk," said Nathan Peterson, director of derivatives research and strategy at the Schwab Center for Financial Research (SCFR).

Continue Reading Here

Let’s talk

The best way to see if we’re a good fit is to have a conversation. Call, email, or fill out the form below to speak with one of our team members. We’ll get in touch as soon as possible.

Full Name

Email Address

Phone Number

By checking this box, I have opted into receiving updates, marketing, and informative messages via text from Horter. Messages will be recurring, message and data rates may apply and message frequencies will vary. Reply STOP at any time to unsubscribe or HELP for more information. Read our Privacy Policy here.

Your Message

We describe the Horter Investment Management platform by using the terms “Low Risk” and “Low Volatility” to emphasize the strategies employed by our money managers. However, notwithstanding the risk management strategies employed by these money managers, certain investment portfolios employed by our money managers present a greater degree of investment risk than others depending upon the performance of the underlying securities. We typically refer to these strategies as “Moderate Risk” and “Moderate Volatility”. Such performance can be impacted by a number of risk factors, including but not limited to (i) the level of price volatility (equity securities generally have greater price volatility than debt securities, (ii) changes in interest rates, and (iii) the ability of the manager to purchase or sell a security in a timely manner at desired prices.

Investment advisory services offered through Horter Investment Management, LLC, a SEC-Registered Investment Advisor. Horter Investment Management does not provide legal or tax advice. Investment Advisor Representatives of Horter Investment Management may only conduct business with residents of the states and jurisdictions in which they are properly registered or exempt from registration requirements. Insurance and annuity products are sold separately through Horter Financial Strategies, LLC. Securities transactions for Horter Investment Management clients are placed through AXOS Advisor Services, Charles Schwab & Co. and Nationwide Advisory Solutions.