Market Recap (10/13/24)
Market Recap of the Week of Oct 7, 2024 - Oct 11, 2024
Source: Apple Stocks Application
Overall Market Trends:
Stocks started down but progressed throughout the week as investor confidence increased and new economic data reports were released. The New York Stock Exchange Composite (NYSE) rose 176 points (+0.90%), the S&P 500 increased 85 points (+1.14%), the NASDAQ Composite climbed 208 points (+1.15%), and the Dow Jones Industrial Average posted weekly gains of 520 points (+1.23%).
Stocks fell on Monday as a result of the rising treasury yield rates and oil prices. Geopolitical issues in the Middle East have been a common denominator of the climbing oil prices raising inflation concerns.
In contrast, stocks rose on Tuesday as traders continued to assess the Middle Eastern conflict, monitoring Israel’s potential retaliation on Iran and the United States’ intervention to attempt to prevent a larger conflict. This caused oil prices to begin to cool down, with crude oil dropping over 4% on the day.
This trend continued into Wednesday’s trading session as stocks soared with investors finally shaking off geopolitical concerns. Wednesday also featured the release of the minutes from the Federal Reserve’s September policy meeting, demonstrating a strong majority in favor of the large rate cut. However, this news did not impact the market much.
Stocks fell on Thursday as a new economic report put inflation back into question. The Consumer Price Index (CPI) rose 0.2% last month, ahead of the 0.1% estimate. After the release of this report, Raphael Bostic, Atlanta Fed President, remarked that she would be fine with keeping rates steady at the Fed’s November policy meeting as opposed to the desired rate cut.
On Friday, stocks rose as banks such as JP Morgan Chase and Wells Fargo released strong earnings reports, indicating a strong economy and pushing indices higher. The Producer Price Index (PPI) came in lower than expected, combating Thursday’s CPI report and inflationary concerns. This news pushed stocks higher, leading to the fifth straight positive week for the market.
Past Earnings Report:
JP Morgan and Wells Fargo reported strong earnings, causing their shares to rise 4.4% and 5.6%, respectively. Despite disappointing revenue, both companies topped profit expectations. It is important to note that the banking sector is generally viewed as a measure of the economy's health, so this increase suggests a strong economy.
Looking Towards the Future
Upcoming Important Economic Events:
Monday: Bond market closed for Columbus Day; Federal Reserve Governor Christopher Waller speaks
Tuesday: Empire State manufacturing survey
Wednesday: Import price index
Thursday: Initial jobless claims; U.S. retail sales; Philadelphia Fed manufacturing index; Industrial production; Capacity utilization; Business inventories; Home builder confidence index
Friday: Federal Reserve Governor Christopher Waller speaks
Future Earnings Reports: