What happened last week…
Earnings season continues, with about one-third of S&P 500 companies reporting results. Meanwhile, the United States and Australia struck a deal on critical minerals and rare earths. Stocks hit new highs after back-to-back weeks in the green with the three major indices performing as follows: DJIA (2.20%), S&P 500 (1.92%), NASDAQ (2.31%). All three indices are on track to finish higher in October.
Theinflation rateyear-over-year for September was better than expectations with a reported figure of 3.0%. Meanwhile, thecore inflation rateyear-over-year for September beat expectations (3.1%) as it decreased to 3.0% from 3.1%.
Existing home salesfor September increased to 4.06 million from 4.00 million. It is the highest reading since February 2025 (4.27 million). Data fornew home salesin September was not released due to the government shutdown.
According to FactSet, as of October 24, for Q3 2025, 29% of S&P 500 companies reported earnings with 87% having a positive EPS surprise and 83% having a positive revenue surprise. The blendedearnings growthfor the S&P 500 is 9.2%, which would be the ninth consecutive quarter of growth. The blendedrevenuegrowthfor the index is 7.0%, which would be the highest growth rate since Q3 2022 (11.0%). In the Rockline portfolios, 31% of companies have reported earnings with 76% having a positive EPS surprise and 76% having a positive revenue surprise.
Happening this week…
On Wednesday, the Federal Open Market Committee will make its next decision oninterest rates. The September meeting resulted in a 25-basis point reduction to a new range of 4.00% to 4.25%. According to the CME FedWatch Tool, as of October 24, there is a 96.7% probability that rates will again be reduced by 25 basis points.
On Thursday, theGDP growth rate(first estimate) for Q3 2025 is expected to be 3.0%. The Q2 2025 reading was the highest figure since Q3 2023.
Thanks for reading!
- The Rockline Team
Rockline Wealth Management (RWM) is a registered investment adviser located in Islip Terrace, NY. RWM is registered with the U.S. Securities and Exchange Commission. Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission.
The information presented above is for informational purposes only and believed to be factual and up-to-date, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed.