Earnings Drive Market
The week kicked off with the Dow Jones Industrials and S&P 500 index setting record highs as the financial markets carried over the previous week’s price momentum.4
Stocks continued to climb on a string of forecast-beating earnings results. With about half of the S&P 500 constituent companies having reported earnings, more than 80% of them have beaten Wall Street analysts’ consensus estimates. Based on these results, earnings for all S&P 500 companies are expected to come in approximately 39% above the third quarter of last year. (Forecasts are based on assumptions, and may not materialize.) Stocks overcame disappointing earnings from two mega-cap tech names on Friday to maintain the week’s solid gains.5
GDP Growth Slows
While businesses managed to post strong earnings in the third quarter, the first look at economic growth came in below consensus estimates. The Gross Domestic Product (GDP) grew at a 2.0% annualized rate in the third quarter, a slowdown from the two previous quarters, each of which posted annualized growth rates in excess of 6%.6
The spread of the Delta variant and backlogs in the supply chain were two major factors dragging on economic activity.
This Week: Key Economic Data
Monday: ISM (Institute for Supply Management) Manufacturing Index.
Wednesday: ADP (Automated Data Processing) Employment Report. Factory Orders. ISM (Institute for Supply Management) Services Index. FOMC (Federal Open Market Committee) Announcement.
Thursday: Jobless Claims.
Friday: Employment Situation.
Source: Econoday, October 29, 2021 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.
This Week: Companies Reporting Earnings
Monday: Simon Property Group, Inc. (SPG).
Tuesday: Pfizer, Inc. (PFE), Activision Blizzard, Inc. (ATVI), Amgen, Inc. (AMGN), Marathon Petroleum Corporation (MPC), ConocoPhillips (COP), Prudential Financial (PRU), Mondelez International, Inc. (MDLZ), TMobile US, Inc. (TMUS), The Estee Lauder Companies, Inc. (EL).
Wednesday: CVS Health Corporation (CVS), Qualcomm, Inc. (QCOM), Electronic Arts (EA), Humana, Inc. (HUM), Booking Holdings, Inc. (BKNG), Match Group, Inc. (MTCH), Emerson Electric (EMR).
Thursday: Square, Inc. (SQ), Albemarle Corporation (ALB), Southern Companies (SO), Cigna Corporation (CI), Skyworks Solutions, Inc. (SWKS), Regeneron Pharmaceuticals, Inc. (REGN).
Friday: DraftKings, Inc. (DKNG).
Source: Zacks, October 29, 2021 Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. 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.
Food For Thought
“And as we let our own light shine,
we unconsciously give other people
permission to do the same.”
– Nelson Mandela
Do a Paycheck Checkup
Every year, the IRS suggests doing what it calls a “Paycheck Checkup.” Check your withholding status if you:
- Get married or divorced
- Give birth to or adopt a child
- Buy a house
- File for bankruptcy
- Get a new job or lose a job
The IRS also suggests checking on any streams of taxable income that are not subject to withholding, such as interest, dividends, capital gains, self-employment income, or retirement plan distributions. You also should check your withholding if you’ve experienced changes to your medical expenses, taxes, charitable gifts, education credits, dependent care expenses, and more. These life changes might affect your deductions or tax credits. Paycheck Checkups may help you better manage the process of filing taxes.
* This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS.gov7
Healthy Living Tip
Rest, Relaxation, and Healthy Nutrition
Here are some tips on how to stay healthy, even during holiday trips:
Before heading to the airport, pack a snack box of fruits, veggies, nuts, lean proteins, and healthy bars. This way, you won’t be tempted by chips and soda while you wait for your flight.
- Get plenty of sleep. Just like at home, it’s really important to get a good night’s sleep while traveling. Sleep helps your body reset for the next day and will help you maintain your weight.
- Hydrate often.
- Take your vitamins to ensure you’re at your best. A daily pill organizer can help you remember to take them, even while traveling.
There’s no reason why you must sacrifice all your hard work and healthy habits while visiting family or heading to warmer destinations during the holidays. If anything, continuing a healthy lifestyle while traveling will help you have even more fun!
Tip adapted from Travel & Leisure8
By rearranging the letters in the phrase
VIEWING A STIR, you can make the name of a U.S. state.
What state is it?
Last week’s riddle: If you add 1.5 to this number,
you will get the same result as you would if you multiplied it
by 1.5. What number is it?
(Hints: It is a whole number, it is not zero, and it is between 1 and 10.)?
Photo of the Week
Zimbabwean side of Victoria Falls, Zimbabwe, Southern Africa.