Stocks Closed Mixed On Friday And For The Week, Nasdaq Extends Winning Streak To 7 Weeks In A Row Stocks closed mixed on Friday with only the Nasdaq finishing in the green. Same goes for the week, as only the Nasdaq put in a weekly gain, extending their winning streak to 7 up weeks in a row. (The Dow and S&P's winning streaks ended at 6 weeks.) Early morning positive EPS surprises on Friday lifted stocks early, even though most of the indexes succumbed to profit taking by day's end. Before the open on Friday, Centene posted a positive EPS surprise of 16.6%, which lifted shares by 4.22% on the day. Booz Allen Hamilton posted a positive EPS surprise of 22.3%, sending shares higher by 9.23%. And Sanofi posted a positive EPS surprise of 16.3%, pushing shares up 4.40% by day's end. Tesla also added to their gains on Friday, tacking on another 3.34% onto Thursday's 21.9% gain, following Wednesday afternoon's earnings beat and upbeat sales growth forecast. This week we'll get another 939 companies on deck to report, with Ford, Waste Management and ON Semiconductor on tap for today. The week gets even more interesting as it goes on with Alphabet and Advanced Micro Devices in queue for tomorrow; Microsoft, Meta, Eli Lilly, AbbVie and Amgen set for Wednesday; Apple, Amazon and Uber on stage for Thursday; and Berkshire Hathaway and Exxon Mobile going on Friday. Friday's economic news had the Durable Goods Orders report showing New Orders coming in at -0.8% vs. last month's -0.8% reading and views for -0.5%. Ex-Transportation it was up 0.4% vs. last month's 0.6% and estimates for -0.1%, while Core Capital Goods were up 0.5% vs. last month's 0.3%. And Consumer Sentiment increased to 70.5 vs. last month's 68.9 and the consensus for 69.0. We've got the typical array of economic reports out this week. But the main event(s) will be Thursday's (10/31) Personal Consumption Expenditures (PCE) index, which is the Fed's preferred inflation gauge, and then Friday's (11/1) Employment Situation report. Ever since the Fed cut rates last month, yields have been climbing higher. Personally, I think that reflects the typical 'buy the rumor, sell the fact' type of phenomenon, as the outlook is still for the Fed to keep cutting rates for the rest of this year, and next year, with the Fed Funds rate getting as low as 3.4% in 2025 (from the current midpoint of 4.9%). But the resilience of the economy has called into question the faster rate-cutting pace that some in the market had been expecting. Thursday's PCE index, if it shows inflation continuing to fall, and maybe even falling faster than expected, would underscore the progress on inflation. And a good, but not overheated, jobs report would further support the need for additional rate cuts and should knock yields back down to where they belong. In other news last week, Israel, on Friday night (Saturday morning local time), finally hit back at Iran in retaliation for Iran's missile attack earlier in the month. Israel concluded their strike, which targeted Iran's military installations, shortly after it begun. It's going to be a busy few weeks for the markets with this Thursday's PCE inflation report, Friday's jobs report, then next week's election (11/5), and then the FOMC Announcement on rates (11/7), all while earnings season continues on. But these are all potentially bullish catalysts for the market, and should help an already stellar year, end on an even stronger note. See you tomorrow, Kevin Matras Executive Vice President, Zacks Investment Research |
Tidak ada komentar:
Posting Komentar