- The average rate on a 30-year fixed mortgage climbed to 6.02%, up from 2.86% a year ago. The last time rates were this high was at the heart of the financial crisis in 2008.
- Less than 1% of the stocks in the S&P 500 finished higher last week, something that has happened only 28 other times since 1940. On average the index gained 15.6% over the following 12 months after such an occurrence and was higher 79% of the time.
- Soaring profits at oil companies are making earnings look better than they really are for the rest of the stock market. Although the energy sector makes up only 2.7% of the US stock market, when you exclude it from the S&P 500 expected earnings for the year drop from 8% to around 1%.
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Investors who have tried to time the market during this turbulent year have potentially missed out on great returns. Without the five best single-day gains from this year, the S&P 500’s loss widens from 19% to 30%.
WSJ- "Mortgage Rates Top 6% for the First Time Since the 2008 Financial Crisis"
Barrons- "The Stock Market Finally Gets It. FedEx's Bad News Helped Drive the Point Home."
WSJ- "Energy and Mining Are Making the Stock Market Look Too Good"
Bloomberg- "Stocks Exact Harsh Toll on Would-Be Market Timers"
Economic Calendar
Monday: NAHB home builders' index (Sep)
Tuesday: Building permits (SAAR) (Aug), Housing starts (SAAR) (Aug)
Wednesday:
Existing home sales (SAAR) (Aug), Federal Reserve statement, Fed Chair Jerome Powell news conference
Thursday:
Initial jobless claims (Sep), Continuing jobless claims (Sep), Current account deficit (% of GDP) (Q2), Leading economic indicators (Aug)
Friday: S&P U.S. manufacturing PMI (flash) (Sep), S&P U.S. services PMI (flash) (Sep)
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