Weekly Market Insights: Boost early last week keeps markets ahead

A strong two-day rally in equities cemented a positive week for investors as a new month of trading began. The Dow Jones Industrial Average rose 1.99%, while the Standard & Poor’s 500 gained 1.51%. The Nasdaq Composite Index was up 0.73% for the week. The MSCI EAFE Index, which tracks developed foreign stock markets, gained 3.42%.1,2,3

Stocks start strong

Stocks opened the week with their best two-day rally since March 2020, buoyed by the UK Prime Minister’s decision to reverse a tax cut proposal that had upended financial markets the previous week.4

Falling yields further fueled investor enthusiasm, as did fresh economic data pointing to a slowing economy. Losses over the past two days erased much of gains as concerns over higher interest rates and a recession came to the fore again. The selling pressure came on the back of a series of hawkish comments from Fed officials and jobs data that suggested the Fed was likely to stick with its rate hike plans.

A mixed job

Employment-related reports offered conflicting signals on the state of the labor market. In a sign of slowdown, job vacancies fell 10% in August, while a subsequent report from Automated Data Processing (ADP) showed continued job strength. ADP reported that private employers added a better-than-expected 208,000 jobs in September and annual wages rose 7.8% from a year earlier.5.6

Also Read :  Global Autonomous Mining Equipment Markets Analysis & Forecasts, 2016-2021 & 2022-2026 & 2031: Focus on Hauling/Mining Trucks, Drilling Rigs, Underground LHD Loaders, & Tunneling Equipment - ResearchAndMarkets.com

Jobless claims rose to 219,000 from 190,000 the previous week, in line with the 2019 average. The September jobs report showed employers added 263,000 jobs — slightly fewer than expected. The combination of new hires and lower labor force participation resulted in a drop in the unemployment rate to 3.5%.7.8

This week: economic data

  • Wednesday: Producer Price Index (PPI). Federal Open Market Committee (FOMC) meeting minutes.
  • Thursday: Consumer Price Index (CPI). unemployment claims.
  • Friday: retail sales.

This week: Companies reporting earnings

  • Wednesday: Delta Air Lines, Inc. (DAL), PepsiCo, Inc. (PEP).
  • Thursday: Wells Fargo & Company (WFC), Walgreens Boots Alliance, Inc. (WBA), BlackRock, Inc. (BLK).
  • Friday: JPMorgan Chase & Co. (JPM), UnitedHealth Group, Inc. (UNH), Citigroup, Inc. (C), Morgan Stanley (MS), The PNC Financial Services Group, Inc. (PNC), US Bancorp (USB).
Also Read :  The Data Storage Job Market in 2022

footnotes and sources

  1. The Wall Street Journal, October 7, 2022
  2. The Wall Street Journal, October 7, 2022
  3. The Wall Street Journal, October 7, 2022
  4. CNBC, October 3, 2022
  5. The Wall Street Journal, October 4, 2022
  6. CNBC October 5, 2022
  7. The Wall Street Journal, October 6, 2022
  8. CNBC, Oct. 7, 2022
  9. IRS.gov, May 19, 2022
  10. Greatist.com, May 26, 2022

Paul Ellis
Photo by Paul Ellis, CIMA®.

Paul Ellis, CIMA® can be reached at 425.405.7720 or [email protected]


This material was prepared by MarketingPro, Inc. and does not necessarily represent the views of the presenting party or its affiliates. This information comes from sources believed to be accurate. Please note that investments involve risk and past performance is no guarantee of future results. The publisher does not provide legal, accounting or other professional services. If assistance is required, the reader is advised to seek the services of a competent professional. This information should not be construed as investment, tax or legal advice and should not be relied upon to avoid federal tax penalties. This is not and should not be taken as a solicitation or recommendation to buy or sell any investment or insurance product or service. All indices are unmanaged and not representative of any particular investment.

Agents of the Investment Adviser, Cambridge Investment Research Advisors, Inc., a registered investment adviser. Registered agent, securities offered by Cambridge Investment Research, Inc., a broker/dealer, member of FINRA/SIPC. Cambridge and Ellis Wealth Management, LLC are not affiliated. The information in this e-mail is confidential and intended only for the addressee. If you are not the intended recipient and have received this email in error, please reply to the sender to let them know of this fact. We cannot accept trade orders via email. Important letters, emails, or faxes should be acknowledged by calling (425) 405-7720. This email service may not be monitored daily or outside normal business hours. This material is distributed through the MarketingPro system.

Leave a Reply

Your email address will not be published.