Investment Commentary – October 27, 2021
Year to Date Market Indices as of October 27, 2021
• Dow 35,673 (18.00%)
• S&P 4,566 (22.89%)
• NASDAQ 15,558 (21.23%)
• Gold $1,732 (-5.57%)
• OIL $83.62 (72.66%)
• Barclay Bond Aggregate (-2.80%)
• Fed Funds Rate 0-0.25 (0-0.25)
• Annual Inflation Rate 5.4% (As of 8/11/21)
News Around The web:
Record heights: The major U.S. stock indexes climbed 1% to 2% for the week as the S&P 500 and the Dow set records, eclipsing previous highs that they set about two months earlier. The NASDAQ finished the week less than 2% below a record that it set in early September.
Earnings momentum: The outlook remained strong a couple of weeks into earnings season. As of Friday, third-quarter net income was expected to rise nearly 33% compared with the same period a year earlier, based on S&P 500 companies that have already reported combined with projections for those still scheduled to report. According to FactSet, that quarterly growth rate would be the third highest in 11 years.
Taper outlook: Federal Reserve Chair Jerome Powell said on Friday that the U.S. central bank was on track to begin reducing its asset purchases soon. However, he said it’s not yet time to raise interest rates because employment levels are still too low. He expects inflation is likely to ease next year as pandemic-related pressures fade.
GDP ahead: The U.S. government’s initial estimate of third-quarter GDP growth is scheduled to be released Thursday. The growth figure will show how much of a negative impact the Delta variant and supply chain disruptions had on growth in the latest quarter. In the second quarter, GDP rose at a 6.7% annual rate.
Upcoming Economic Reports
Third-quarter GDP, advance estimate, U.S. Bureau of Economic Analysis
Weekly unemployment claims, U.S. Department of Labor
https://www.marketwatch.com/ (Market Indices)
https://jasonzweig.com/this-day-in-financial-history/ (This day in Financial History)
https://www.jhinvestments.com/weekly-market-recap (Around the Web & Upcoming Events)
https://finviz.com/groups.ashx (YTD Performance Chart)