Archive for October 2023

This week marked a lower close for equities in the last full week of October, despite positive economic data and Q3 earnings growth. Third-quarter GDP exceeded expectations, primarily driven by increased consumer spending and government expenditures. September Durable Goods orders were strong, particularly in the transportation sector.

The Leading Economic Index raised ongoing economic concerns, while September Existing Home Sales declined from a year ago with a very modest gain in home prices. We also saw initial claims reach a 10-month low last week, underscoring the strength of the labor market.

In a week full of data, inflation continues to clock in above the Federal Reserve’s 2% target, with September’s CPI and PPI indexes both coming in hot this week. Earnings look to be faring well so far for the third quarter, with 5% of the S&P 500 having been reported at this time, largely beating estimates. In other news, consumer sentiment fell in October, as consumers note continually higher prices, like we saw in the CPI. Overall, the economy looks to be in a pivotal position, with higher rates, inflation, and geopolitical risk being in the forefront of investors’ minds.

The first week of October came full of economic data and movements in interest rates, as equities saw large swings but ultimately ended lower. As of close Thursday October 5th, the Nasdaq Composite fell -0.66%, the S&P 500 fell -0.7%, and the Dow Jones Industrial Average fell -0.94% for the week.