Market Recap (10/27/24)
Market Recap of the Week of Oct 21, 2024 - Oct 25, 2024
Source: Apple Stocks Application
Overall Market Trends:
Last week, different sectors faced mixed results as three out of the four major indices declined on the week. The sole winner was the tech-heavy NASDAQ Composite which rose 30 points (+0.16%). On the other hand, the New York Stock Exchange declined 430 points (-2.15%), the S&P 500 fell roughly 56 points (-0.96%), and the Dow Jones Industrial Average posted weekly losses of 1,161 points (-2.68%).
The market faced mixed results during Monday’s trading session as fears that the Federal Reserve may take a higher-for-longer approach for interest rates. Consumer and Homebuilder stocks were some of the larger losers on the day with Target falling 3.8%, Lennar losing 4.4%, and Builders FirstSource declining 5.2%. These fears also caused interest rates to rise with the 10-year yield reaching 4.19%. When treasury bond yields rise, the stock market generally decreases because it indicates that the stock market has more competition. If investors can make more money in a safe government bond, then they are better off investing in those bonds rather than the risky and volatile stock market. This trend continued into Tuesday’s and Wednesday’s session.
While the Dow Jones continued to fall, both the S&P 500 and NASDAQ Composite rose on Thursday. Tesla soared 22% on the day after the company beat earnings expectations, contributing significantly to the first positive day of the week for the S&P 500. Largely pulling the Dow Jones down was IBM which fell about 6% after barely missing consulting revenue expectations.
On Friday, stocks continued to fall as yields continued to rise, finishing the day at 4.24%. Despite this, the NASDAQ persisted, finishing the day positive as mega-cap technology companies rose ahead of their earnings this upcoming week.
McDonald's E. Coli Outbreak
The CDC released a report on Tuesday stating that an E. Coli outbreak was linked to the company’s quarter-pounder burger. The outbreak has already resulted in forty-nine cases, ten hospitalizations, and one death, with one person developing hemolytic uremic syndrome - a serious condition that can cause kidney failure. The company released a statement late Tuesday acknowledging and addressing the outbreak. McDonald’s has already instructed stores to remove slivered onions from their stores and even removed quarter-pounders from the menu in a few affected states. Despite this, shares plummeted 7% during pre-market trading and finished the day down 5%.
Past Earnings Report:
Looking Towards the Future
Upcoming Important Economic Events:
Tuesday: S&P Case-Shiller home price index (20 cities); Consumer confidence; Job openings
Wednesday: ADP employment; GDP
Thursday: Initial jobless claims; Personal Consumption Expenditures (PCE) index; Core PCE
Friday: U.S. employment report; S&P final U.S. manufacturing PMI
Future Earnings Reports: