Last week was a bit of a mixed bag for the stock market, but we did see some modest gains! With quarterly earnings reports coming in and the U.S. election around the corner, there’s a lot to keep an eye on.
The S&P 500 nudged up by 0.85%, the Nasdaq Composite climbed 0.80%, and the Dow Jones Industrial Average saw a nice boost of 0.96%. On the flip side, the MSCI EAFE Index, which tracks stocks from developed markets outside the U.S., dipped slightly by 0.31%. It's definitely an interesting time in the market!
Six in a Row
Stocks kicked off the week with impressive energy! The S&P 500 and Dow Industrials both hit record highs, with the Dow crossing the 43,000 mark for the very first time. Midweek, a surprising boost came from a stronger-than-expected retail sales report, showing a 0.4% increase in September—better than what economists had predicted. As the week came to a close, the tech sector really stepped up, driving the S&P and Nasdaq to new record highs as well. This marks the sixth consecutive week of gains for the S&P 500, Nasdaq, and Dow Industrials. Exciting times ahead!
Source: YCharts.com, October 19, 2024. Weekly performance is measured from Monday, October 14, to Friday, October 18. 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.
Insight from Corporate Reports
Last week, the market was a bit of a tug-of-war, with various forces influencing each other. Corporate earnings reports were a major driver of activity, with several big financial stocks exceeding expectations and reinforcing the idea that the economy is holding strong. Meanwhile, a report from one of the largest chip manufacturing companies highlighted ongoing robust global demand for AI microchips. However, as we approach the November elections, there was a noticeable undercurrent of anxiety among investors, keeping things a bit tense in trading.
This Week: Key Economic Data
Monday: Fed Officials Lori Logan, Neel Kashkari, and Jeffrey Schmid speak.
Tuesday: Fed Official Patrick Harker speaks.
Wednesday: Existing Home Sales. Beige Book. Fed Officials Michelle Bowman and Thomas Barkin speak.
Thursday: New Home Sales. Weekly Jobless Claims. Fed Official Beth Hammack speaks.
Friday: Durable Goods. Consumer Sentiment.
Source: Investors Business Daily - Econoday economic calendar; October 18, 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: GE Aerospace (GE), Philip Morris International Inc. (PM), Verizon Communications Inc. (VZ), Texas Instruments Incorporated (TXN), RTX Corporation (RTX), Lockheed Martin Corporation (LMT), Fiserv, Inc. (FI)
Wednesday: Tesla, Inc. (TSLA), The CocaCola Company (KO), T-Mobile US, Inc. (TMUS), Thermo Fisher Scientific Inc. (TMO), International Business Machines Corporation (IBM), ServiceNow, Inc. (NOW), AT&T Inc. (T), Boston Scientific Corporation (BSX), The Boeing Company (BA)
Thursday: Amazon.com, Inc. (AMZN), S&P Global Inc. (SPGI), Union Pacific Corporation (UNP), United Parcel Service, Inc. (UPS)
Source: Zacks, October 18, 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
“In the middle of every difficulty lies opportunity.”
- Albert Einstien
What begins with T, ends with T, and has T in it?
Last week’s riddle: The more you take, the more you leave behind. What am I?
Answer:Footsteps
Wilson's Prom, Australia. A photo from Joanne's January vacation.
Footnotes and Sources
- The Wall Street Journal, October 18, 2024
- Investing.com, October 18, 2024
- CNBC.com, October 15, 2024
- The Wall Street Journal, October 17, 2024
- The Wall Street Journal, October 18, 2024
- The Wall Street Journal, October 18, 2024
- IRS.gov, July 3, 2024
- American Psychological Association, 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.
U.S. Treasury Notes are guaranteed by the federal government as to the timely payment of principal and interest. However, if you sell a Treasury Note prior to maturity, it may be worth more or less than the original price paid. Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
International investments carry additional risks, which include differences in financial reporting standards, currency exchange rates, political risks unique to a specific country, foreign taxes and regulations, and the potential for illiquid markets. These factors may result in greater share price volatility.
Please consult your financial professional for additional information.