Category: Weekly Updates

Weekly Updates

Financial News and Portfolio Management Discussion through October 30th

US stocks ended October at a new all time high on the back of strong corporate earnings. The S&P 500 climbed 1.4% and the Dow rose 0.4% for the week. Abroad, the FTSE All World Ex US fell 0.8% for the week. The yield on the 10-year Treasury eased dropping to 1.55% over the week from 1.65%.

With roughly half of S&P 500 companies reporting earnings to date 82% have topped analysts’ earnings estimates.

Consumer confidence rose in September for the first time in three months.

Home sales rose in September more than expected and home price growth in August continued to be at a record high.

Third quarter GDP slowed to 2.0%, the weakest growth rate since the pandemic recovery began last summer.

The personal consumption expenditures price index, the Fed’s preferred inflation gauge, rose 4.4% in September from the previous year, the fastest pace in 30 years. Core prices rose 3.6%.

Financial News and Portfolio Management Discussion through October 23rd

US stocks continued their recent rebound driven by better than expected corporate earnings to hit a new record high during the week. The S&P 500 climbed 1.6% and the Dow rose 1.1% for the week. Abroad, the FTSE All World Ex US gained 0.6% for the week. The yield on the 10-year Treasury rose to 1.65%, up from 1.57% to reach its highest level since May. Oil continued its recent climb to finish the week at $83.76, its highest level in seven years.

China’s GDP grew at a 4.9% pace in the third quarter, less than expected and significantly less than the 7.9% growth seen in the second quarter.

Industrial production fell 1.3% in September due to Hurricane Ida and supply chain disruptions. An increase was expected.

Initial jobless claims fell to 290,000, a new pandemic era low.

Existing home sales rose 7% in September from August.

In public comments Fed Chief Powell said inflation risks have increased and that he is more concerned about its impacts.

Analysts now estimate that earnings rose 35% in the third quarter from last year and to date roughly 80% of S&P 500 firms have topped analysts’ earnings estimates.

Financial News and Portfolio Management Discussion through October 16th

Stocks surged over the week on better than expected earnings to kick of third quarter earnings season with the largest banks posting strong gains. The S&P 500 climbed 1.8% and the Dow jumped 1.6% for the week. Abroad, the FTSE All World Ex US was gained 2.3% for the week. The yield on the 10-year Treasury declined for the first time in eight weeks to end the week at 1.57% down from 1.60%. Oil continued to surge to finish the week at $82.28, its highest level since 2014.

The CPI rose 0.4% from August and is up 5.4% over the year, slightly higher levels than projected.

The Fed’s meeting minutes from their September meeting showed that it was prepared to begin curtailing its bond buying program in November with a potential end mid next year. They also could raise interest rates late next year.

US jobless weekly jobless claims fell below 300,000 to 293,000, its lowest level since the pandemic began.

Retail sales rose 0.7% in September, when a decline was expected.

Financial News and Portfolio Management Discussion through October 9th

Stocks gained over the week on an increase to the debt ceiling until early December avoiding a potential default. The S&P 500 rose 0.8% and the Dow gained 1.2% for the week. Abroad, the FTSE All World Ex US was up 0.6% for the week. The yield on the 10-year Treasury posted its seventh straight week of gains to end the week at 1.60% up from 1.48%. It’s at its highest level since late June. Oil surged over the week gaining 4.6% on low supply to finish the week at $79.35 a barrel, its highest level since 2014.

The US saw its slowest pace of monthly job gains this year in September with just 194,000 jobs added. However, August’s hiring was revised higher. More job seekers exited the labor pool last month so despite the weak higher level the unemployment rate dropped to 4.8%. Wages rose 4.6% from a year earlier.

Initial jobless claims fell for the first time in four weeks.

OPEC+ agreed to continue to increase oil production in gradual steps and not accelerate production as many had expected.

Financial News and Portfolio Management Discussion through October 2nd

Stocks declined over the week on worries over inflation and economic growth. The S&P 500 fell 2.2% and the Dow dropped 1.4% for the week. Abroad, the FTSE All World Ex US sank 2.5% for the week. The yield on the 10-year Treasury continued its recent climb to end the week at 1.48% up from 1.46%. It’s at its highest level since late June.

China’s central bank announced that all cryptocurrency transactions are illegal dealing a blow to the virtual currencies.

US durable goods orders rose 1.8% in August stronger than expected.

Home price growth rose an annual record 19.7% in July according to the Case-Shiller Home price index.

China’s manufacturing activity contracted in September for the first time since the star of the pandemic, while some growth was still expected.

In comments Fed Chair Powell said the recent increase in inflation might last longer than the Fed initially anticipated.