In this week’s recap: the S&P 500 and Nasdaq Composite outperform the Dow Industrials, earnings season gets underway, and retail sales retreat for the first time since winter.
THE WEEK ON WALL STREET
Earnings helped give the Nasdaq Composite and S&P 500 a slight lift last week, offsetting investor disappointment over the small scope of the preliminary U.S.-China trade deal reached on October 11. Blue chips took a small weekly loss.
The Nasdaq and S&P respectively gained 0.40% and 0.54% on the week. The Dow Jones Industrial Average retreated just 0.17%. Outdoing these three benchmarks, the MSCI EAFE index tracking stocks in developed overseas markets rose 1.35%.1,2
The Early Earnings Picture
According to stock market analytics firm FactSet, 15% of S&P 500 companies had reported results through Friday’s close. Of those companies, 84% announced that net profits topping projections, and 64% said that revenues had exceeded forecasts.
One big question is whether overall earnings for S&P 500 firms will show year-over-year growth. There was no year-over-year earnings gain evident in either Q1 or Q2.3
Retail Sales Declined Last Month
Shoppers scaled back their purchases in September. The Census Bureau announced a 0.3% dip for retail sales, the first decrease in seven months.
Auto sales can influence this number, and car and truck buying fell 0.9% last month. A fall pickup in that category may help encourage another monthly advance.4
If you buy your own health coverage, note that the open enrollment period for 2020 health insurance plans begins on November 1 in most states. The open enrollment window closes on December 15.5
TIP OF THE WEEK
There are three distinct incentives to keep working in your sixties. One, your employer most likely offers you private health insurance and other medical benefits. Two, you can keep contributing to your retirement plan at work. Three, if you wait to claim Social Security at full retirement age, you will receive 100% of your monthly retirement benefit rather than a reduced amount.
THE WEEK AHEAD: KEY ECONOMIC DATA
Tuesday: The National Association of Realtors publishes a report on September existing home sales.
Thursday: A report on September new home sales arrives from the Census Bureau.
Friday: The University of Michigan’s final October Consumer Sentiment Index appears, evaluating consumer confidence levels.
Source: Econoday, October 18, 2019
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.
THE WEEK AHEAD: COMPANIES REPORTING EARNINGS
Monday: Celanese (CE), Halliburton (HAL), Sap (SAP), TD Ameritrade (AMTD)
Tuesday: McDonalds (MCD), Novartis (NVS), Procter & Gamble (PG), Texas Instruments (TXN)
Wednesday: Boeing (BA), Eli Lilly (LLY), Microsoft (MSFT), PayPal (PYPL)
Thursday: Amazon (AMZN), Comcast (CMCSA), Intel (INTC), Visa (V)
Friday: Anheuser-Busch (BUD), Verizon (VZ)
Source: Zacks.com, October 18, 2019
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Any investment should be consistent with your objectives, time frame, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.
QUOTE OF THE WEEK
“There must be a beginning of any great matter, but the continuing unto the end until it be thoroughly finished yields the true glory.” – SIR FRANCIS DRAKE
THE WEEKLY RIDDLE
It falls from great heights, but it never stays, and sometimes people wish it would go away. What is it?
LAST WEEK’S RIDDLE:
In terms of date and time, what was so significant about 3,661 seconds past midnight on January 1, 2001?
The time and date was 01:01:01 on 01/01/01.
Greg R. Solis, AIF®
President and CEO
Bob Medler, CRPC®, CMFC®, AIF®
Wealth Advisor / Investment Analyst
Tiffany Valentine, CFP®
CERTIFIED FINANCIAL PLANNER™
Vice President | Director of Financial Planning
78-075 Main Street
La Quinta, CA 92253
Office: (760) 771-3339
Fax: (760) 771-3181
This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. The information herein has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All market indices discussed are unmanaged and are not illustrative of any particular investment. Indices do not incur management fees, costs and expenses, and cannot be invested into directly. All economic and performance data is historical and not indicative of future results. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability and differences in accounting standards. This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. MarketingPro, Inc. is not affiliated with any person or firm that may be providing this information to you. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional
1 – wsj.com/market-data [10/18/19]
2 – quotes.wsj.com/index/XX/990300/historical-prices [10/18/19]
3 – insight.factset.com/sp-500-earnings-season-update-october-18-2019 [10/18/19]
4 – reuters.com/article/us-usa-economy-retail/weak-u-s-retail-sales-cast-gloom-over-economy-idUSKBN1WV1NG [10/16/19]
5 – businessinsider.com/what-is-open-enrollment-your-opportunity-to-buy-health-insurance [10/15/19]