December 10, 2024 7:55 pm

The premier news source for Snohomish County

Weekly Market Insights: Boost early last week keeps markets ahead

A powerful two-day stock rebound cemented a positive week for investors as a new trading month began. The Dow Jones Industrial Average rose 1.99%, while the Standard & Poor’s 500 added 1.51%. The Nasdaq Composite index increased 0.73% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, gained 3.42%.1,2,3

Stocks Start Strongly 

Stocks opened the week posting their best two-day rally since March 2020, as the U.K. prime minister’s decision to reverse a tax cut proposal that had upended financial markets the previous week lifted investors.4

Falling yields further lifted investor enthusiasm, as did new economic data indicating a cooling economy. Losses in the last two days erased much of the gains as concerns about higher rates and recession once again moved front and center. The selling pressure was due to a stream of hawkish comments by Fed officials and labor market data that suggested the Fed would likely stick with its rate-hike plans.

A Mixed Labor Picture

Employment-related reports offered conflicting signals on the state of the labor market. In a sign of cooling, the number of open jobs in August fell 10%, while a subsequent report from Automated Data Processing (ADP) showed continued labor market strength. ADP reported private employers added a higher-than-anticipated 208,000 jobs in September, and annual wages rose 7.8% from a year ago.5,6

Jobless claims rose to 219,000, up from the previous week’s 190,000 and in line with 2019’s average. September’s employment report showed that employers added 263,000 jobs–slightly lower than expectations. The combination of new hiring and lower labor force participation led to a drop in the unemployment rate to 3.5%.7,8

This Week: Key Economic Data

  • Wednesday: Producer Price Index (PPI). Federal Open Market Committee (FOMC) Meeting Minutes.
  • Thursday: Consumer Price Index (CPI). Jobless 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), U.S. Bancorp (USB).

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, October 7, 2022
  9. IRS.gov, May 19, 2022
  10. Greatist.com, May 26, 2022


Paul Ellis
Photo of Paul Ellis, CIMA®.

Paul Ellis, CIMA® may be reached at 425.405.7720 or paul.ellis@elliswealthmanagement.net.

www.elliswealthmangement.net

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Cambridge and Ellis Wealth Management, LLC are not affiliated. The information in this email is confidential and is intended solely for the addressee. If you are not the intended addressee and have received this email in error, please reply to the sender to inform them of this fact. We cannot accept trade orders through email. Important letters, email, or fax messages should be confirmed by calling (425) 405-7720. This email service may not be monitored every day, or after normal business hours. This material distributed via the MarketingPro system.

Leave a Reply

Your email address will not be published. Required fields are marked *

Tell Us What You Think

This poll is no longer accepting votes

If you are IAM member, will you vote to approve the October 19 tentative agreement with Boeing? Poll ends 11:59 p.m., Oct 22, 2024.
VoteResults

    Join Our Mailing List

    Verified by MonsterInsights