In this week’s recap: the S&P 500 and Nasdaq Composite
outperform the Dow Industrials, earnings season gets underway, and retail sales
retreat for the first time since winter.
Weekly Economic Update
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
T I P O F
T H E W E E K
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.
THE WEEK
AHEAD: KEY ECONOMIC DATA
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.
Source:
Econoday, October 18, 2019
The Econoday economic calendar lists upcoming U.S. economic data
releases (including key economic indicators), Federal Reserve policy meetings,
and speaking engagements of Federal Reserve officials. The content is developed
from sources believed to be providing accurate information. The forecasts or
forward-looking statements are based on assumptions and may not materialize.
The forecasts also are subject to revision.
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)
Source:
Zacks.com, October 18, 2019
Companies
mentioned are for informational purposes only. It should not be considered a
solicitation for the purchase or sale of the securities. Any investment should
be consistent with your objectives, time frame, and risk tolerance. The return
and principal value of investments will fluctuate as market conditions change.
When sold, investments may be worth more or less than their original cost.
Companies may reschedule when they report earnings without notice.
Q U O T E O F T H E W E E K
“There must be a beginning
of any great matter, but the continuing unto the end until
it be thoroughly finished yields the true glory.”
SIR FRANCIS
DRAKE
T H E W E E K L Y
R I D D L E
It falls from great
heights, but it never stays, and sometimes people wish it would go
away. What is it?
LAST WEEK’S
RIDDLE: In terms of date and time, what was so significant about 3,661 seconds
past midnight on January 1, 2001?
ANSWER: The
time and date was 01:01:01 on 01/01/01.
Troy L Thompson, CFP may be
reached at 515-432-5421 or troy@thompsonfinancialinc.com
www.thompsonfinancialinc.com
www.thompsonfinancialinc.com
Know
someone who could use information like this?
Please feel free to send us their contact information via phone or email. (Don’t worry – we’ll request their permission before adding them to our mailing list.)
Please feel free to send us their contact information via phone or email. (Don’t worry – we’ll request their permission before adding them to our mailing list.)
Troy
Troy Thompson, CFP
DBA Thompson Financial and Hanson Asset Strategies
Securities offered through FIRST HEARTLAND CAPITAL, INC.
Member FINRA & SIPC.
Thompson Financial is not affiliated with FIRST HEARTLAND
CAPITAL, INC.
This material was prepared by MarketingPro, Inc., and does
not necessarily represent the views of the presenting party, nor their
affiliates. The information herein has been derived from sources believed to be
accurate. Please note - investing involves risk, and past performance is no guarantee
of future results. Investments will fluctuate and when redeemed may be worth
more or less than when originally invested. 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 market indices discussed
are unmanaged and are not illustrative of any particular investment. Indices do
not incur management fees, costs and expenses, and cannot be invested into
directly. All economic and performance data is historical and not indicative of
future results. The Dow Jones Industrial Average is a price-weighted index of
30 actively traded blue-chip stocks. The NASDAQ Composite Index is a
market-weighted index of all over-the-counter common stocks traded on the
National Association of Securities Dealers Automated Quotation System. The
Standard & Poor's 500 (S&P 500) is a market-cap weighted index composed
of the common stocks of 500 leading companies in leading industries of the U.S.
economy. NYSE Group, Inc. (NYSE:NYX) operates two securities exchanges: the New
York Stock Exchange (the “NYSE”) and NYSE Arca (formerly known as the
Archipelago Exchange, or ArcaEx®, and the Pacific Exchange). NYSE Group is a
leading provider of securities listing, trading and market data products and
services. The New York Mercantile Exchange, Inc. (NYMEX) is the world's largest
physical commodity futures exchange and the preeminent trading forum for energy
and precious metals, with trading conducted through two divisions – the NYMEX
Division, home to the energy, platinum, and palladium markets, and the COMEX
Division, on which all other metals trade. Additional risks are associated with
international investing, such as currency fluctuations, political and economic
instability and differences in accounting standards. This material represents
an assessment of the market environment at a specific point in time and is not
intended to be a forecast of future events, or a guarantee of future results.
MarketingPro, Inc. is not affiliated with any person or firm that may be
providing this information to you. 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.
1 - wsj.com/market-data
[10/18/19]
2 - quotes.wsj.com/index/XX/990300/historical-prices [10/18/19]
3 - insight.factset.com/sp-500-earnings-season-update-october-18-2019
[10/18/19]
4 - reuters.com/article/us-usa-economy-retail/weak-u-s-retail-sales-cast-gloom-over-economy-idUSKBN1WV1NG
[10/16/19]
5 - businessinsider.com/what-is-open-enrollment-your-opportunity-to-buy-health-insurance
[10/15/19]
CHART CITATIONS:
quotes.wsj.com/index/XX/990300/historical-prices
[10/18/19]
quotes.wsj.com/index/SPX/historical-prices
[10/18/19]
treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield
[10/18/19]
No comments:
Post a Comment