Weekly Newsletter October 14th to October 18th
Stocks posted modest gains last week, with quarterly earnings season in full swing and the election on the horizon.
The Standard & Poor’s 500 Index increased 0.85 percent, while the Nasdaq Composite Index rose 0.80 percent. The Dow Jones Industrial Average advanced 0.96 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, fell 0.31 percent.1,2
Six in a Row
Stocks bolted out of the gate as the week began. The S&P 500 and the Dow Industrials hit record highs, with the Dow crossing 43,000 for the first time.3
Midweek, news of stronger-than-expected retail sales report contributed to overall market momentum. Retail sales rose a seasonally adjusted 0.4 percent in September, topping economists forecasts.4
As the week wrapped up, the technology sector helped fuel a rally that pushed the S&P and Nasdaq to another record high. It was the sixth straight week of gains for the S&P 500, Nasdaq, and Dow Industrials.5
Source: YCharts.com, October 19, 2024. Weekly performance is measured from Monday, October 14, to Friday, October 18. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.
Insight from Corporate Reports
There were many market forces pushing each other around last week.
Corporate earnings reports drove much of the market action. Some of the most extensive financial stocks surprised on the upside, supporting a narrative that the economy remains strong.
At the same time, a corporate report from one of the world’s largest chip manufacturing contractors revealed continued strong global demand for AI microchips. However, increasing investor anxiety was a constant undertow in trading as the November elections drew nearer.6
This Week: Key Economic Data
Monday: Fed Officials Lori Logan, Neel Kashkari, and Jeffrey Schmid speak.
Tuesday: Fed Official Patrick Harker speaks.
Wednesday: Existing Home Sales. Beige Book. Fed Officials Michelle Bowman and Thomas Barkin speak.
Thursday: New Home Sales. Weekly Jobless Claims. Fed Official Beth Hammack speaks.
Friday: Durable Goods. Consumer Sentiment.
Source: Investors Business Daily - Econoday economic calendar; October 18, 2024
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
Tuesday: GE Aerospace (GE), Philip Morris International Inc. (PM), Verizon Communications Inc. (VZ), Texas Instruments Incorporated (TXN), RTX Corporation (RTX), Lockheed Martin Corporation (LMT), Fiserv, Inc. (FI)
Wednesday: Tesla, Inc. (TSLA), The CocaCola Company (KO), T-Mobile US, Inc. (TMUS), Thermo Fisher Scientific Inc. (TMO), International Business Machines Corporation (IBM), ServiceNow, Inc. (NOW), AT&T Inc. (T), Boston Scientific Corporation (BSX), The Boeing Company (BA)
Thursday: Amazon.com, Inc. (AMZN), S&P Global Inc. (SPGI), Union Pacific Corporation (UNP), United Parcel Service, Inc. (UPS)
Source: Zacks, October 18, 2024
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.
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“Never be limited by other people’s limited imaginations.”
– Mae Jemison
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Tax Incentives Can Help You Further Your Education
Tax credits help with the cost of higher education by managing the income tax you may need to pay. The two tax credits available are the American Opportunity Tax Credit and the Lifetime Learning Credit.
Some education savings plans offer tax benefits if the individual qualifies. Also, you may be able to deduct higher education costs – such as tuition, student loan interest, and qualified education expenses – from your tax return.
Knowing your potential tax benefits may save you money if you’ve always dreamed about returning to school, whether to further your career or just learn something new.
This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS7
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The Benefits of Brain Training
We know how important it is to exercise our bodies, but exercising our brains is just as important. When we continue to learn, our brains are better for it. Here are just a few benefits of “brain training,” or exercising your brain:
- Improved executive functions
- Improved working memory
- Improved processing speed
- Preserved cognitive health
- Fewer problems with daily functioning
- Better control over mental processing abilities
There are many fun ways to exercise your brain, one of which is to continue learning new things. Attend a pottery, painting, or foreign language class in your neighborhood, or check for discounts on community college courses. Another great way to exercise your brain is to socialize with others, spend time in nature, and practice mind puzzles, such as crosswords, Sudoku, or a game in a brain-training app.
Tip adapted from American Psychological Association8
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How could Gail drive her car from Cleveland to Miami with a flat tire?
Last week’s riddle: If six pheasants are in a stand of cattails, and a hunter shoots one of them, how many will remain amid the cattails?
Answer: None, because the rest of the pheasants will fly away when they hear the shot.
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Two lions (Panthera leo) resting high up in a tree
Moremi Game Reserve, Okavango Delta, Botswana
Footnotes and Sources
1. The Wall Street Journal, October 18, 2024
2. Investing.com, October 18, 2024
3. CNBC.com, October 15, 2024
4. The Wall Street Journal, October 17, 2024
5. The Wall Street Journal, October 18, 2024
6. The Wall Street Journal, October 18, 2024
7. IRS.gov, July 3, 2024
8. American Psychological Association, July 24, 2024
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.
The forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.
The market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. Past performance does not guarantee future results.
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