Last week felt a bit rocky for the markets, and it wasn’t the most uplifting news for investors. With mixed economic signals and third-quarter corporate earnings that were strong yet didn’t quite hit the mark, many were left feeling uncertain. The Standard & Poor’s 500 Index dropped by 1.36%, while the Nasdaq Composite fell a bit more steeply, down 1.50%. Even the Dow Jones managed only a slight decline of 0.15%.
At home in Canada, the TSX Composite Index also took a hit, declining by about 1.2%. Concerns about global economic stability and interest rates have been weighing on investor sentiment, making it a challenging environment for anyone looking to navigate these waters. It’s always a reminder of how interconnected our markets are, and how important it is to stay informed, especially during times like these.
Despite the downward trends, it’s crucial to remember that markets can be cyclical. Finding opportunities amidst the uncertainty is key—just as much as staying grounded in your investment strategy.
Q3 Reports Uninspired
Early Wednesday, stocks jumped after a strong GDP report hinted that the economy might be on a path to a soft landing. It felt like a breath of fresh air, right? But as the day wore on, reality set in. Investors began to sift through mixed third-quarter earnings from some of the big tech names, and the enthusiasm faded.
Thursday brought more challenges. Disappointing outlooks from key tech companies weighed heavily on the market, leaving many of us feeling a bit anxious. Then came Friday, when a softer-than-expected jobs report added to the tension. It felt like a rollercoaster—just when you thought things might stabilize, the ride took another dip. But as the day went on, stocks started to recover a bit, and all eyes were on how the Fed would react to the jobs data.
By the end of the week, it was clear: the Nasdaq's impressive eight-week winning streak had come to a halt, and the S&P 500 faced its second consecutive weekly decline. It’s a reminder of how quickly things can change in the market.
Source: YCharts.com, November 2, 2024. Weekly performance is measured from Monday, October 28, to Friday, November 1. 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.
Fed Back in Focus After Jobs Report
This past week felt a bit mixed for the markets, didn’t it? As investors prepared for a wave of Q3 earnings reports, there was a sense of anticipation in the air. It’s always interesting to see how different companies perform, especially in this economic climate. The 10-year Treasury yield kept climbing, which had some traders on edge—always a good reminder of how interconnected everything is.
Wednesday morning hit hard with the news that existing home sales in the U.S. dropped to a 14-year low in October. It’s tough out there, especially with higher interest rates weighing on the market. It really puts things into perspective when you think about how this year is shaping up to be the worst for home sales since 1995! And with pre-election jitters lingering, it felt like a lot was hanging in the balance.
On a brighter note, news that durable goods orders rose in September brought a little cheer, which was nice to see. By Friday’s close, the Nasdaq, powered by tech stocks, celebrated its seventh consecutive week of gains—what a streak! Meanwhile, the S&P 500 broke its six-week winning run, reminding us how quickly things can shift.
This Week: Key Economic Data
Monday: Motor Vehicle Sales. Factory Orders.
Tuesday: Election Day.
Wednesday: FOMC Meeting – Day 1. EIA Petroleum Status Report.
Thursday: FOMC Meeting – Day 2. FOMC Announcement. Fed Chair Press Conference. Productivity and Costs.
Friday: Consumer Sentiment. Fed Official Michelle Bowman speaks.
Source: Investors Business Daily - Econoday economic calendar; November 1, 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
Monday: Vertex Pharmaceuticals Incorporated (VRTX)
Tuesday: Apollo Global Management Inc. (APO)
Wednesday: Qualcomm Incorporated (QCOM), Gilead Sciences, Inc. (GILD)
Thursday: Arista Networks, Inc. (ANET), Duke Energy Corporation (DUK), Airbnb, Inc. (ABNB)
Source: Zacks, November 1, 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.
“If you think you're too small to make a difference, try sleeping with a mosquito.”
- Dalai Lama
I am only one syllable long and too heavy for one person to life, but if you reverse me, I am not. What am I?
Last week’s riddle: I have keys but open no locks. I have space but no room. I have a face but no eyes. What am I?
Answer:A Keyboard
Real life Pumba's (Wart Hogs) from Melissa's trip to Africa.
Footnotes and Sources
- The Wall Street Journal, November 1, 2024
- Investing.com, November 1, 2024
- CNBC.com, October 30, 2024
- The Wall Street Journal, October 30, 2024
- The Wall Street Journal, November 1, 2024
- The Wall Street Journal, November 1, 2024
- IRS.gov, March 29, 2024
- Active, 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.