Last week was an interesting one for the stock market, as it managed to climb despite a mix of inflation data, fluctuating oil prices, and ongoing concerns about the Middle East. It’s a reminder of how resilient these markets can be. The Standard & Poor’s 500 Index saw a nice bump, rising 1.11 percent, while the Nasdaq Composite gained 1.13 percent. The Dow Jones Industrial Average also joined the party with a 1.21 percent increase. Even the MSCI EAFE Index, which tracks developed overseas markets, added a modest 0.23 percent. It’s a bit of a relief to see this upward movement amidst the uncertainty!
Up and Down Week
It was a bit of a rollercoaster week for stocks. On Monday, they dipped as oil prices continued to climb, but by Tuesday, the tech sector really stepped up and helped lift the markets. Investors seemed to take a cautious approach with the ongoing tensions in the Middle East, leading to some fluctuations in oil prices.
Wednesday brought some excitement as both the S&P 500 and Dow Industrials reached new record highs! However, Thursday morning saw a bit of a setback after the Consumer Price Index (CPI) data revealed that inflation was a little hotter than expected. It’s always a balancing act, isn’t it?
Then came Friday, kicking off earnings season! Reports from several major banks sparked some enthusiasm, and the Producer Price Index (PPI) showed that wholesale prices remained steady last month, which was a welcome sign for investors. Overall, it was great to see all three major averages close higher for the fifth week in a row. It's always nice to see some positive momentum in the markets!
Source: YCharts.com, October 12, 2024. Weekly performance is measured from Monday, October 7, to Friday, October 11. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.
Inflation Moves Markets
Even though we saw some good news with retail inflation continuing to slow down in September, investors were still feeling a bit anxious. They couldn’t shake the fact that the Consumer Price Index (CPI) came in just a touch higher than what economists had predicted. It’s always tough when expectations don’t align!
On the bright side, Friday’s Producer Price Index (PPI) reading offered a glimmer of hope, coming in a bit better than expected. This adds another layer for the Fed to consider as they navigate the ongoing inflation landscape. It’s a complex situation, and you can feel the tension in the air as everyone waits to see how it all unfolds!
This Week: Key Economic Data
Monday: Fed Official Christopher Waller speaks.
Tuesday: Fed Official Adriana Kugler speaks.
Wednesday: Import and Export Prices. API Weekly Oil Stocks.
Thursday: Retail Sales. Industrial Production. EIA Petroleum Status Report. Weekly Jobless Claims. Fed Official Austan Goolsbee speaks.
Friday: Housing Starts and Permits.
Source: Investors Business Daily - Econoday economic calendar; October 9, 2024
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
This Week: Companies Reporting Earnings
Tuesday: UnitedHealth Group Incorporated (UHN), Johnson & Johnson (JNJ), Bank of America Corporation (BAC), The Goldman Sachs Group, Inc. (GS), Citigroup Inc.©
Wednesday: Abbott Laboratories (ABT), Prologis, Inc. (PLD)
Thursday: Netflix, Inc. (NFLX), Morgan Stanley (MS), Intuitive Surgical, Inc. (ISRG), Elevance Health, Inc. (ELV), Marsh & McLennon Companies, Inc. (MMC), The Blackstone Group (BX)
Friday: The Proctor & Gamble Company (PG), American Express Company (AXP)
Source: Zacks, October 9, 2024
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
“The best way to find yourself is to lose yourself in the service of others.”
- Mahatma Gandhi
The more you take, the more you leave behind. What am I?
Last week’s riddle: I have rough skin and sometimes more than two eyes, but I can be tasty when prepared plainly and simply. What am I?
Answer:A potato
Blyde River Canon in Africa. A photo from Melissa’s vacation.
Footnotes and Sources
- The Wall Street Journal, October 11, 2024
- Investing.com, October 11, 2024
- CNBC.com, October 8, 2024
- MarketWatch.com, October 9, 2024
- The Wall Street Journal, October 10, 2024
- The Wall Street Journal, October 10, 2024
- The Wall Street Journal, October 11, 2024
- MarketWatch.com, October 11, 2024
- IRS.gov, June 12, 2024
- healthline.com, July 24, 2024
Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
The Dow Jones Industrial Average is an unmanaged index that is generally considered representative of large-capitalization companies on the U.S. stock market. Nasdaq Composite is an index of the common stocks and similar securities listed on the NASDAQ stock market and is considered a broad indicator of the performance of technology and growth companies. The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) and serves as a benchmark of the performance of major international equity markets, as represented by 21 major MSCI indexes from Europe, Australia, and Southeast Asia. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.
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