Hello, this is James Mayer, Branch Manager, from the Huffman Mayer Wealth Management Group of Wells Fargo Advisors.  We are excited to share April’s edition of the market recap. Let’s see what Phil has to say.

 

Thanks James.

 

·         First quarter 2024 earnings season is just getting started, and it probably to soon to draw conclusions just yet. According to FactSet, as of April 12th the blended revenue growth (a combination of actual results for companies that have reported and estimates for those that have not) is 3.4% for 1Q24. Blended earnings growth is currently 0.9%. If the actual EPS growth rate is 0.9%, it will trail both the 5 and 10-year average quarterly EPS growth rates.

·         Although the S&P 500 is a U.S. Index, most of the companies that make it up do business Internationally as well. According to data from FactSet, 59% of S&P revenues are derived from U.S. sales, whereas 41% are derived from International Sales. The mix is significantly different between sectors, with 99% of Utility sector revenue coming from domestic markets (the highest), and only 43% of Tech sector revenue coming from the U.S.A. (the lowest).

·         According to the Bureau of Labor Statistics, the headline unemployment rate has ticked up slightly over the last 15 months, from 3.4% to 3.8%. Meanwhile, the more sensitive U-6 Unemployment rate has increased by 0.8% since bottoming in December of 2022. “Headline” or U-3 unemployment measures people who are completely unemployed and have looked for work in the past month. The U-6 measure includes U-3 unemployment, but also counts people who are working part time but would like to work full time, and people who are unemployed and have not looked for work in the past month.

 

In Summary:

1.       The blended revenue growth rate for 1Q24 is 3.4% and the blended EPS growth rate is 0.9%, which is below long-term averages.

2.       S&P 500 companies generate 59% of revenue in the U.S. and 41% abroad. That varies significantly between industries, with Utilities the U.S. focused and Tech the least.

3.       Unemployment has moved slightly higher over the last 5 quarters. This is more apparent in the U-6 measure, which includes discouraged and underemployed workers.

Now let’s see what is going on in May.

 

Thank you Phil.

As some of you may know already, we are hosting our Shred-it event again this year and it will be held on May 4th from 9am – noon at our Ashtabula office. We are very excited for this event as the newly appointed Executive Director Patti Baldwin Andersen from the United Way of Ashtabula County will be joining us this year. There will be local doughnuts and coffee available as you watch your papers get shredded. Please keep in mind that the shredding services can not accept metal objects. If you would like further information on this event please call our office.

 

We always want to talk with you.  If you feel you know someone who would enjoy this video please feel free to send them the link.

As always stay happy, safe, and healthy and hopefully we will see you very soon.

Huffman Mayer Wealth Management Group of Wells Fargo Advisors

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