What happened last week…
The six-week winning streak for both the DJIA (-2.68%) and S&P 500 (-0.96%) ended last week while the tech-heavy NASDAQ (0.16%) extended its streak of weekly gains to seven weeks. Year-to-date performances are as follows: DJIA (11.74%), S&P 500 (21.77%), NASDAQ (23.36%).
Existing home sales for September missed expectations (3.90 million) as it decreased to 3.84 million from the upwardly revised 3.88 million (from 3.86 million), making it the lowest reading since October 2010 (3.83 million). Meanwhile, new home sales for September beat expectations (720,000) as it increased to 738,000 from the downwardly revised 709,000 (from 716,000). It is the highest level since May 2023.
According to FactSet, as of October 25, for Q3 2024, 37% of S&P 500 companies have reported earnings with 75% having a positive EPS surprise and 59% having a positive revenue surprise. The blendedearnings growth for the S&P 500 is 3.6%, which would be the fifth straight quarter of growth. The blended revenuegrowth for the index is 4.9%, which would be the 16th straight quarter of growth.
Happening this week…
The following companies report earnings this week: WM, CMG, GOOG, MCD, PSX, V, ABBV, ADP, ITW, LLY, META, MSFT, AAPL, AMZN, MA, MRK, SO, UBER, XOM.
On Wednesday, the GDP growth rate (first estimate) for Q3 2024 is expected to match the Q2 2024 growth rate of 3.0%. The Q1 2024 rate of 1.6% was the lowest growth since the Covid pandemic.
On Wednesday, the ADP employment change may decrease to 110,000 from 143,000. On Friday, the unemployment rate is expected to remain at 4.1%, nonfarm payrolls are forecasted to decrease to 140,000 from 254,000, and average hourly earnings month-over-month are expected to decrease to 0.3% from 0.4%.
On Friday, the manufacturing PMI for October is expected to increase to 47.6 from 47.2, which marked the sixth straight contractionary reading (below 50) and the 22nd contraction in the past 23 months.
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- The Rockline Team
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