Corporate earnings season is coming to a close. Will there be enough fuel left in the tank for equities?
Monday
S&P 500 0.92% | NASDAQ 0.84%
Markets sunk to start the week as earnings season finishes up. Consumer discretionary companies Home Depot (HD) and Lowes (LOW) are set to release earnings. Tech giant, Nvidia (NVDA), also highlights the earnings calendar this week.
Tuesday
S&P 500 0.83% | NASDAQ 1.21%
Home Depot (HD) shares slumped after a poor outlook and softer earnings. The S&P500 and Nasdaq sold off as the CME Group is forecasting a 50% chance of a December rate cut.
Wednesday
S&P 500 0.38% | NASDAQ 0.59%
Buyers slowly poured back into equities after two days of decline. Lowes (LOW) earnings were slightly above expectations, boosting markets. Atlanta Fed GDPNow has increased its estimates to 4.2% in Q4, up from 4%.
Thursday
S&P 500 1.56% | NASDAQ 2.15%
Markets surged at the open after jobs added (Sept) well-exceeded expectations. Nvidia (NVDA) led a tech rally early after earnings were released late Wednesday. The rally faded shortly thereafter. Tech stocks continued to drag down major indices while Wal-Mart (WMT) beat profits in Q3.
Friday
S&P 500 0.98% | NASDAQ 0.88%
Markets jumped on Friday after dovish comments by a Federal Reserve Board Member. The rally was not enough to regain lost ground which further underscores market sensitivity to monetary policy (interest rates).
Conclusion
S&P 500 1.95% | NASDAQ 2.74%
A full week of economic data and notable earnings announcements could not deter sellers. Profit-pulling won out as the final stretch of corporate earnings drove markets lower. Chances of a correction are low, but sector rotations are increasing as portfolios look to profit off healthy gains. A small pullback may just encourage risk-on strategies as consistent earnings buoy markets into a yearend run-up. Spending is showing signs of slowing but next week’s retail sales will provide more insight. As 2025 concludes, markets are anticipating a strong push to the finish line, even with the recent pullback.
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