Last Week’s Summary
- S&P 500 Index fell 1.35%
- International Equities fell 1.07%
- Emerging Markets fell 1.08%
- U.S. 10-Year Treasury Yield rose to 4.38%
- Initial Jobless Claims fell to 216k
- PCE fell to 2.1%
- Core PCE remained at 2.7%
- Change in Nonfarm Payrolls fell to 12k
- Unemployment Rate stayed at 4.1%
What to Watch for This Week
- M, 11/4/24 Factory Orders, Durable Goods Orders
- T, 11/5/24 Trade Balance, ISM Services Index, Presidential Election
- W, 11/6/24 MBA Mortgage Applications
- Th, 11/7/24 Initial Jobless Claims, FOMC Rate Decision
- F, 11/8/24 U. of Mich. Sentiment, U. of Mich. 1-Year Inflation
Weekly Market Recap
Stocks rebounded late in the week as traders looked beyond mixed economic data and uncertainty around a historically close U.S. election to focus on strong corporate earnings. The S&P 500 ended a two-day decline, with industry leaders showing resilience. Tech giants, recently hit hardest, led the gains on Friday.
Amazon surged 6.2% on strong earnings, Intel rose 7.8% on a positive outlook, and Exxon and Chevron exceeded profit, output, and sales forecasts. Boeing climbed 3.5% as optimism grew over a potential end to a prolonged strike, while Apple fell 1.2% after a cautious forecast.
Wall Street shrugged off October’s jobs data, which showed the slowest hiring pace since 2020 due to hurricanes and a significant strike, but unemployment remained low. This softened jobs report supports the Federal Reserve’s case to continue easing restrictive rates aimed at curbing inflation.
The report is the last key data before the Fed’s meeting and the November 5 presidential election. Treasury yields rose, reversing earlier declines, as traders priced in two expected rate cuts: a quarter-point reduction on November 7 and another on December 18, totaling 50 basis points by year’s end.
They anticipate just over 60 basis points of easing by January’s end, suggesting a possible pause early next year. Oil prices ticked up on reports of potential Iranian aggression toward Israel, though crude still closed the week lower amid doubts over supply disruptions.
60-Second Breakdown:
Redwood Senior Analyst Michael C. Sasaki, CFA® discusses recent market performance and explains this week’s chart.
