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Weekly Recap | April 17, 2023

Weekly Recap | April 17, 2023

April 20, 2023
Weekly Recap

April 10-14, 2023 Recap

Equities Rebound

Small Caps Perform Best
The S&P 500 and Nasdaq Composite rebounded last week, both finishing positive on the week for the fourth time since March 17. The Fed is making more progress in battling inflation. Data last Wednesday showed consumer prices rose just 0.1% in March, and from a year ago prices are up 5.0%, the slowest pace in 22 months. The start of the first quarter earnings season fared much better than feared. Of the 30 S&P 500 companies that reported results last week, 90% topped analysts’ EPS forecasts, the best first week beat rate since 2012.

For the Week…
The S&P 500 rose 0.82% after slipping 0.06% the previous week. The Dow Jones Industrial Average gained 1.20% and the tech-heavy Nasdaq Composite added 0.30%. Small caps performed best, with the Russell 2000 up 1.54% in which Growth (+2.09%) led Value (+0.94%). Year-to-date, the S&P 500 is up 8.31% and the Nasdaq Composite has gained nearly twice as much, up 16.13%.

Retail Sales Retreat
U.S. retail sales fell for a second straight month, now down in six of the last nine months. Spending fell 1.0% (-0.4% expected), the deepest sales pullback since last November. The biggest decliners include furniture (-1.2%), electronics (-2.1%), building materials (-2.1%), and department store (-2.5%).

Financials Rebound
Seven of the 11 S&P 500 sector groups posted gains last week, led by Financials (+2.86%) and Energy (+2.50%). Information Technology
(-0.35%), Real Estate (-1.35%) and Utilities (-1.34%) were the biggest decliners. On a year-to-date basis, Communication Services (+24.31%) and Technology (+20.02%) are this year’s biggest gainers.

Treasury Yields Rise
Treasury yields rebounded last week amid hawkish rate outlook views from several Fed officials who are supportive of a 0.25% rate hike in early May. The yield on benchmark 10-year yield Treasury notes ended the week at 3.52% (up 0.14% week-over-week)

The Latest from @CeteraIM

Investor Sentiment Still Bearish

Grocery Prices Finally Ease

Small Business Optimism Weakens

Economic Calendar

Monday, April 17
Empire State Manufacturing, Homebuilder Confidence.

Tuesday, April 18
Housing Starts/Permits.

Wednesday, April 19
Mortgage Activity, Fed Beige Book.

Thursday, April 20
Jobless Claims, Philadelphia Fed Manufacturing, Existing Home Sales, U.S. Leading Indicators.

Friday, April 21
S&P Global Flash U.S. Services & Manufacturing PMIs.

The Russell 1000 Growth index is trading at a valuation premium of 2.05 vs the Russell 1000 Value index based on projected sales over the next 12 months. The 20-year avg premium is 1.62. Growth remains expensive versus Value for large cap stocks, though the premium is smaller compared to the start of last year.

This report is created by Cetera Investment Management LLC. For more insights and information from the team, follow @CeteraIM on Twitter.

About Cetera® Investment Management
Cetera Investment Management LLC is an SEC registered investment adviser owned by Cetera Financial Group®. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.

About Cetera Financial Group
“Cetera Financial Group” refers to the network of independent retail firms encompassing, among others, Cetera Advisors LLC, Cetera Advisor Networks LLC, Cetera Investment Services LLC (marketed as Cetera Financial Institutions or Cetera Investors), and Cetera Financial Specialists LLC. All firms are members FINRA / SIPC. Located at 655 W. Broadway, 11th Floor, San Diego, CA  92101.

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No independent analysis has been performed and the material should not be construed as investment advice. Investment decisions should not be based on this material since the information contained here is a singular update, and prudent investment decisions require the analysis of a much broader collection of facts and context. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The opinions expressed are as of the date published and may change without notice. Any forward-looking statements are based on assumptions, may not materialize, and are subject to revision.

All economic and performance information is historical and not indicative of future results. Investors cannot directly invest in unmanaged indices. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability, and differences in accounting standards.


The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ.

The S&P 500 is an index of 500 stocks chosen for market size, liquidity and industry grouping (among other factors) designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe.

The NASDAQ Composite Index includes all domestic and international based common type stocks listed on The NASDAQ Stock Market. The NASDAQ Composite Index is a broad based index

The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe and is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.

The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market.

The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe and is a subset of the Russell 1000 Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership.

The Bloomberg US Aggregate Bond Index, which was originally called the Lehman Aggregate Bond Index, is a broad based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government–related and corporate debt securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency) debt securities that are rated at least Baa3 by Moody’s and BBB- by S&P. Taxable municipals, including Build America bonds and a small amount of foreign bonds traded in U.S. markets are also included. Eligible bonds must have at least one year until final maturity, but in practice the index holdings have a fluctuating average life of around 8.25 years.

The Bloomberg US Corporate High Yield Index measures the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high yield if the middle rating of Moody's, Fitch, and S&P is Ba1/BB+/BB+ or below, excluding emerging market debt. Payment-in-kind and bonds with predetermined step-up coupon provisions are also included. Eligible securities must have at least one year until final maturity, but in practice the index holdings has a fluctuating average life of around 6.3 years.

The Bloomberg US Municipal Bond Index covers the USD-denominated long-term tax exempt bond market. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds. Eligible securities must be rated investment grade (Baa3/BBB- or higher) by Moody’s and S&P and have at least one year until final maturity.

The MSCI EAFE Index is designed to measure the equity market performance of developed markets (Europe, Australasia, Far East) excluding the U.S. and Canada. The Index is market-capitalization weighted.

The MSCI Emerging Markets Index is designed to measure equity market performance in global emerging markets. It is a float-adjusted market capitalization index.

The Bloomberg Commodity Index is a broadly diversified index that measures 22 exchange-traded futures on physical commodities in five groups (energy, agriculture, industrial metals, precious metals, and livestock), which are weighted to account for economic significance and market liquidity. No single commodity can comprise less than 2% or more than 15% of the index; and no group can represent more than 33% of the index.

The S&P GSCI Crude Oil Index is a sub-index of the S&P GSCI, provides investors with a reliable and publicly available benchmark for investment performance in the crude oil market.

The S&P GSCI Gold Index, a sub-index of the S&P GSCI, provides investors with a reliable and publicly available benchmark tracking the COMEX gold futures market.

The U.S. Dollar Index is a weighted geometric mean that provides a value measure of the United States dollar relative to a basket of major foreign currencies. The index, often carrying a USDX or DXY moniker, started in March 1973, beginning with a value of the U.S. Dollar Index at 100.000.