October 21, 2019

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%.1,2

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 Q2.3

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.4

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 15.5

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)
Market Index Close Oct 18 Week % YTD %
DJIA 26,770.20 -0.17 +14.76
NASDAQ 8,089.54 +0.40 +21.92
S&P 500 2,986.20 +0.54 +19.12
Treasury Close Oct 18  Week % YTD %
10 Year Note 1.76% 0.00 -0.93

Sources: wsj.com, treasury.gov – 10/18/19
Indices are unmanaged, do not incur fees or expenses, and cannot be invested into directly. These returns do not include dividends. Weekly and year-to-date market index returns are expressed as percentages. 10-year Treasury note yield = projected return on investment, expressed as a percentage, on the U.S. government’s 10-year bond. Weekly and year-to-date 10-year Treasury note yield differences are expressed in basis points.

Weekly Tip

There are three distinct incentives to keep working in your sixties.

One, your employer most likely offers you private health insurance and other medical benefits.

Two, you can keep contributing to your retirement plan at work.

Three, if you wait to claim Social Security at full retirement age, you will receive 100% of your monthly retirement benefit rather than a reduced amount.


Citations
  1. wsj.com/market-data
  2. quotes.wsj.com/index/XX/990300/historical-prices
  3. insight.factset.com/sp-500-earnings-season-update-october-18-2019
  4. reuters.com/article/us-usa-economy-retail/weak-u-s-retail-sales-cast-gloom-over-economy-idUSKBN1WV1NG
  5. businessinsider.com/what-is-open-enrollment-your-opportunity-to-buy-health-insurance

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