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Weekly Update 4/17/2026: Earnings Season Begins

Insights
  • Existing home sales fall
  • Goldman Sachs reports robust equity trading results
  • JPMorgan and Wells Fargo remain positive on consumer spending
  • JNJ has solid quarterly results
  • Travelers increases dividend 14%
  • Initial unemployment claims decline

Economic Data

The National Association of Realtors reported that previously owned properties fell 3.6% to an annualized 3.98 million in March. The consensus expectation called for an annualized pace of 4.05 million units sold. As recently as 2022, the seasonally-adjusted annualized rate was closer to 5.5 million. Sales in the Northeast fell to the lowest on record in data going back to 1999. Meanwhile, sales in the Midwest were also sluggish, matching the weakest pace since 2011. Sales of condos and co-ops dropped for a third straight month, down 5.4% in March.  

The median selling price rose 1.4% from a year earlier to reach $408,800. First-time buyers represent about one-third of purchasers. Inventory levels have risen to a four-month high. Mortgage rates have climbed since early March as inflationary pressures brought on by the conflict in the Middle East reverberates into credit markets. The main issue is that the typical homeowner with a mortgage is paying about two percentage points below prevailing market rates. Thus, they have no incentive to put their house on the market knowing that they would face considerably higher monthly expenses elsewhere. The spring selling season has begun, but, so far, it has been less than refreshing.

The Bureau of Labor Statistics (BLS) released the producer price index (PPI) for the month of March this week. Headline PPI rose 0.5% versus a downwardly revised 0.5% in February. Core prices, which exclude food and energy categories, slowed to a 0.1% pace versus a downwardly revised 0.3% in the month prior. Wholesale prices rose by less than expected, but most of the effects of the war in the Middle East were still to come. Nevertheless, energy prices were still influenced. The BLS said a nearly 16% rise in gas prices was responsible for almost half of the increase in goods prices, which rose by the most since August 2023. Services prices were mostly flat, but there was a 4.1% jump in air passenger transport expenses. The cost of processed goods for intermediate demand rose by the most in nearly four years, thanks primarily to rising energy and food costs.  

Meanwhile the Labor Department reported that initial claims for unemployment fell by 11,000 to 207,000 in the week ended April 11. That was the largest one week drop since February, suggesting that, despite layoff headlines grabbing attention, on the whole separations remain largely limited. The Fed’s Beige Book survey of regional business contacts revealed that most employers describe labor demand as “stable.” Nevertheless, continuing claims rose by 31,000 to 1.82 million in the week ended April 4. That supports the “low fire, low hire” environment which has marked the last few months in the U.S. as those laid off have had a hard time finding new positions.    

Company Events

SGK writes additional weekly commentary for clients of the firm detailing recent events and earnings of core equity holdings.

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