The third-quarter earnings season begins this week, with 161 S&P 500 firms reporting, including big names such as Toyota Motor Corp Ltd Ord, ConocoPhillips and Amgen Inc.
While several high-profile corporations have already reported, Fox Corp. on Tuesday and News Corp. on Thursday are still scheduled to report.
Keep an eye out for results from big health-care corporations including CVS Health, Pfizer, Eli Lilly, Cardinal Health, Cigna, and Humana.
Over half of the S&P 500 (264 companies) have reported third-quarter earnings, and thus far, the results have exceeded expectations.
Apple’s huge gains helped offset drops in consumer discretionary stocks, which were knocked down by e-commerce behemoth Amazon’s sales warning.
After two days of falls, the tech-heavy Nasdaq Composite Index surged 309.78 points, or 2.9%, to 11102.45. The S&P 500 increased by 93.76 points, or 2.5%, to 3901.06, while the Dow Jones Industrial Average increased by 828.52 points, or 2.6%, to 32861.80.
All three indices concluded the week with gains, with the Dow industrials’ latest surge bringing its year-to-date loss to less than 10%.
Octobers are frequently seen as unlucky months by traders, given the 1929 stock market crash and Black Monday both occurred during the month. However, the Dow industrials are on track to end October up more than 14%, the highest monthly performance since January 1976.
These increases demonstrate how the FAANG group of businesses — Facebook parent Meta Platforms, Apple, Amazon, Netflix, and Google parent Alphabet – no longer dominate the performance of key stock indexes as they once did.
The shares of those businesses are all down considerably in 2022, and Meta, Amazon, and Alphabet all plummeted severely this week after announcing disappointing profits.
State Of The Economy
Recent data on the health of the US economy have been conflicting. Consumer spending increased more than predicted in September, according to data released on Friday.
A busy week of economic data awaits, with an emphasis on the manufacturing and services sectors, culminating on Friday with the release of the Labor Department’s October employment report.
The core personal consumption expenditures index, the Fed’s favored inflation indicator, fell marginally in September from August.
According to a separate survey, worker pay and benefits increased 5% year on year in the third quarter, indicating a small slowing from the previous quarter.
A day earlier, statistics indicated that the US economy expanded in the third quarter, despite a drop in consumer and business expenditure.
Bond Market At A Glance
Bond rates in the United States have fallen in recent days as investors evaluate their expectations for more Federal Reserve rate hikes.
The Fed will meet next week and is likely to give another 0.75 percentage point hike, but some investors believe the Fed may slow the pace of future rate increases.
The benchmark 10-year Treasury yield increased to 4.009% on Friday, up from 3.938% on Thursday. Yields and prices move in opposite directions.
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