Markets pulled back from recent highs and revealed a slowdown could be occurring. Will we begin to see a deceleration in the coming months?
Monday S&P 500 0.27% | NASDAQ 0.26%
The final trading week of October began in positive territory. The month has been fairly flat for the S&P 500 but Nasdaq has pulled ahead in anticipation of Magnificent-7 earnings reports.
Tuesday S&P 500 0.16% | NASDAQ 0.78%
The S&P500 was muted on the day while the NASDAQ climbed higher. Consumer confidence jumped for the month.
Wednesday S&P 500 -0.33% | NASDAQ -0.56%
Markets took note of important data releases to temper the recent runup. Both major indexes fell on the day after earnings in the tech space. More attention was paid to data surrounding GDP, which fell below expectations for Q3 but remained in strong territory.
Thursday S&P 500 -1.86% | NASDAQ -2.76%
Post earnings selloffs ensued throughout the trading day as perhaps a profit pull on highly appreciated positions. Inflation data inched higher on the year-over-year figures but remained stable for the past month. The pullback followed with some market indigestion as a bevy of earnings reports were assessed from the past quarter.
Friday S&P 500 0.41% | NASDAQ 0.80%
Markets rebounded on the day but couldn’t make up ground lost on Wednesday and Thursday. Jobs added sunk well below expectations and was attributed to the impacts of recent hurricanes and union strikes. Manufacturing showed signs of continued slowing and GDP Estimates for the 4th quarter were lowered.
Conclusion S&P 500 -1.37% | NASDAQ -1.50%
There was a lot of enthusiasm around earnings this week, especially for the bigger players in the market. Price movement is to be expected in October which was no different this year and the major indexes fell for the month. Profit pulling is likely behind a fair amount of recent large cap trades as some market share was shed this week. Large-Cap companies have enjoyed their share of growth throughout the year. The Federal Reserve meets next week in a show of further policy measures and the jobs reports for October may have solidified another .25% at the upcoming meeting; however, they’ve been good at not telegraphing each move they intend to make. The combination of slowing GDP growth, manufacturing and less jobs lend itself to a slowing economy, but the Holiday Season optimism and Black Friday shopping will be right around the corner.
~ Your Future… Our Services… Together~
Your interest in our articles helps us reach more people. To show your appreciation for this post, please “like” the article on one of the links below:
FOR MORE INFORMATION:
If you would like to receive this weekly article and other timely information follow us, here.
Always remember that while this is a week in review, this does not trigger or relate to trading activity on your account with Financial Future Services. Broad diversification across several asset classes with a long-term holding strategy is the best strategy in any market environment.
Any and all third-party posts or responses to this blog do not reflect the views of the firm and have not been reviewed by the firm for completeness or accuracy.