Price Return Last Week
S&P 500 (1.0%) S&P Mid Cap (2.8%) Russell 2000 (3.0%)
MSCI EAFE (2.0%) MSCI EM (1.8%)
10 Yr US Treasury Rate – rose from 4.08% to 4.23%
Source: Refinitiv Eikon
Recent News
Q3 Earnings – Over 30% of S&P 500 companies are set to report third quarter earnings this week. Nearly 40% of companies have reported results through Friday with mixed results. 75% of companies have reported a positive EPS surprise but only 59% have reported upside revenue surprises, below the 5-year average of 69%. Thus far, earnings growth has averaged 3.6% year-over-year. Should this continue to be positive, it would be the fifth straight quarter with year-over-year earnings growth.
Source: FactSet Research Systems
Fed Commentary – On Monday, four policymakers for the Federal Reserve indicated their continued support for an interest rate cut at the next meeting. Three of the four seemed to indicate a preference for moving slow with the next cut (25 basis points), while the San Francisco Fed President, Mary Daly, was open to a quicker decline given her feelings that Fed policy is currently “very tight.” Policymakers are now under a communications blackout until the next policy decision is made on November 7.
Source: Thomson Reuters
IMF Improves Outlook – The International Monetary Fund raised its growth outlook for the U.S. in 2024 to 2.8% from 2.6%. They also improved the outlook for 2025 to 2.2% from 1.9%. They cited rising wages that have led to stronger-than-expected consumption as key variables that changed their outlook. China and Germany both saw cuts to expected growth. India is projected to have the strongest economic growth of all major economies at 7.0% for 2024.
Source: Thomson Reuters
World Series Luxury – This will be the first World Series ever that will feature five former MVPs (Ohtani, Betts, Freeman, Judge, and Stanton). Given all the star players that both teams feature, it should come as no surprise that this World Series will set a record for the highest combined payroll of both teams, estimated at $650 million. The average price for a ticket to one of the games on the secondary market is $1,703, topping the previous high of $1,691 set in 2016 when the Chicago Cubs faced the Cleveland Indians.
Source: MLB.com, The Wall Street Journal, CNN
Upcoming Events
10/28 – Notable Earnings Reports: Ford
10/29 – Consumer Confidence, Notable Earnings Reports: American Tower, DR Horton, Ecolab, McDonald’s, Pfizer, PayPal, Chubb, AMD, Chipotle, First Solar, ONEOK, Visa, Alphabet, Stryker
10/30 – ADP Employment, Q3 GDP, Notable Earnings Reports: Caterpillar, ADP, Eli Lilly, Exelon, Kraft Heinz, Fortive, GE Healthcare, Bunge, Illinois Tool Works, Abbvie, Aflac, Allstate, Amgen, Cognizant Technology, MetLife, Microsoft, Booking Holdings, Ventas, Meta, KLA Corp, Starbucks
10/31 – PCE, Notable Earnings Reports: Linde, Bristol-Myers Squibb, Comcast, Intercontinental Exchange, Mastercard, Merck, ConocoPhillips, Southern Co, Aptiv, Uber, Apple, Amazon, Monster Beverage, Intel, Vici Properties
11/1 – Jobs Report, Notable Earnings Reports: Chevron, Simon Property Group, Exxon Mobil
Source: Refinitiv Eikon