Markets retreated this week as asset valuations have come under scrutiny. Will estimates remain strong or will the retreat continue?
Monday S&P 500 -0.18% | NASDAQ 0.27%
The trading week started mixed as the S&P500 fell after six weeks of gains while the NASDAQ was boosted by another surge in tech. This week will be filled with earnings releases from the 3rd quarter.
Tuesday S&P 500 -0.05% | NASDAQ 0.18%
Markets saw a repeat of Monday’s trend but with less movement overall as anticipation grew for mid-week economic data and earnings releases. Several defense contractors reported earnings but were mixed for the quarter.
Wednesday S&P 500 -0.92% | NASDAQ -1.60%
Existing home sales and mortgage applications fell as interest rates have increased since the September Federal Funds Rate Cut. A great deal of focus surrounds the movement in the bond market with the 10-year treasury yield jumping this week, rising 11 basis points (.11%) through Wednesday and 54 basis points (.54%) since September 18th. Markets fell on the housing data and higher bond yields.
Thursday S&P 500 0.21% | NASDAQ 0.76%
The S&P500 caught its breath after a rough start to the week. Jobs data contributed to the market’s bounce. Earnings continued to roll in and the pain could be felt in the DOW Jones, as the major index fell for the 4th consecutive day.
Friday S&P 500 -0.03% | NASDAQ 0.56%
Consumer sentiment came in above expectations, which kept traders happy, at least for the day. The NASDAQ took most the headlines while the DOW continued its slide, ending down -2.72% on the week.
Conclusion S&P 500 -0.96% | NASDAQ 0.16%
The season is here, at least the earnings season. There was important data released over the course of the week, but markets didn’t see a whole lot of reasons to celebrate with the eventual slide for both the S&P500 and Dow. Technology stocks garnered much attention in anticipation of their earnings reports for the next week. Volatility, as measured by the CBOE VIX Index, has inched higher most of October. The final week of trading for the month will help markets get some answers ahead of the Holiday Season. September and October can be indicators for investors’ tolerance for risk. Although the VIX has increased in the last month, any major selloffs have been kept at bay. The Federal Reserve will be meeting in the first week of November, which will be watched closely by markets, especially as leading economic indicators continue to be split on an economic contraction versus expansion.
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