Global equities traded marginally higher this week as investors look forward to key economic data heading into month-end. More than 95% of companies in the S&P 500 have now reported first-quarter earnings. According to FactSet, the revenue growth rate for the first quarter is expected to come in around 10.7%, which would mark the highest year-over-year growth since the third-quarter of 2011 (12.5%). Despite impressive results, earnings did very little to push stocks one way or the other, as it appears much of the good news was already priced into valuations. The consumer confidence index for May came in softer than expected along with new home sales. Investors will have no shortage of economic data to digest over the last few trading days of May, with the second reading of first-quarter gross domestic product (GDP), durable goods orders, and pending home sales slated for release on Thursday. With inflation top of mind, Friday’s release of the core personal consumption expenditure (PCE) deflator (the Fed’s preferred measure of inflation) will likely be in focus. The month of May has proven to be quite volatile for investors, and more of the same is anticipated as investors remain focused on inflation and the U.S. economy. Interest rates trended lower, with the yield on the 2-year and 10-year Treasury notes trading around 0.15% and 1.56% respectively mid-week.

Source: GSAM, JPM, FactSet, FactorInvestor

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