Market Updates

Market Update – October 21, 2019

Posted on by RCM Investments

The Week on Wall Street

Earnings helped give the Nasdaq Composite and S&P 500 a slight lift last week, offsetting investor disappointment over the small scope of the preliminary U.S.-China trade deal reached on October 11. Blue chips took a small weekly loss.

The Nasdaq and S&P respectively gained 0.40% and 0.54% on the week. The Dow Jones Industrial Average retreated just 0.17%. Outdoing these three benchmarks, the MSCI EAFE index tracking stocks in developed overseas markets rose 1.35%.[i],[ii]

The Early Earnings Picture

According to stock market analytics firm FactSet, 15% of S&P 500 companies had reported results through Friday’s close. Of those companies, 84% announced that net profits topping projections, and 64% said that revenues had exceeded forecasts.

One big question is whether overall earnings for S&P 500 firms will show year-over-year growth. There was no year-over-year earnings gain evident in either Q1 or Q2.[iii]

Retail Sales Declined Last Month

Shoppers scaled back their purchases in September. The Census Bureau announced a 0.3% dip for retail sales, the first decrease in seven months.

Auto sales can influence this number, and car and truck buying fell 0.9% last month. A fall pickup in that category may help encourage another monthly advance.[iv]

What’s Next

If you buy your own health coverage, note that the open enrollment period for 2020 health insurance plans begins on November 1 in most states. The open enrollment window closes on December 15.[v]

THE WEEK AHEAD: KEY ECONOMIC DATA

Tuesday: The National Association of Realtors publishes a report on September existing home sales.
Thursday: A report on September new home sales arrives from the Census Bureau.
Friday: The University of Michigan’s final October Consumer Sentiment Index appears, evaluating consumer confidence levels.

THE WEEK AHEAD: COMPANIES REPORTING EARNINGS

Monday: Celanese (CE), Halliburton (HAL), Sap (SAP), TD Ameritrade (AMTD)
Tuesday: McDonalds (MCD), Novartis (NVS), Procter & Gamble (PG), Texas Instruments (TXN)
Wednesday: Boeing (BA), Eli Lilly (LLY), Microsoft (MSFT), PayPal (PYPL)
Thursday: Amazon (AMZN), Comcast (CMCSA), Intel (INTC), Visa (V)
Friday: Anheuser-Busch (BUD), Verizon (VZ)


[i]https://www.wsj.com/market-data
[ii]https://quotes.wsj.com/index/XX/990300/historical-prices
[iii]https://insight.factset.com/sp-500-earnings-season-update-october-18-2019
[iv]https://www.reuters.com/article/us-usa-economy-retail/weak-u-s-retail-sales-cast-gloom-over-economy-idUSKBN1WV1NG
[v]https://www.businessinsider.com/what-is-open-enrollment-your-opportunity-to-buy-health-insurance

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