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Last week for the stock market was uniquely eventful, in more ways than one. Not only did we see Q3 earnings reports heat up in quantity, it was also Jobs Week (ADP private-sector payrolls, JOLTS data, weekly jobless claims and Friday’s Employment Situation report) and the penultimate Fed meeting of the year, which did not result in a 25 basis-point (bps) interest rate hike.
As a result, market indices ran stronger than they have in a year, with the Dow up more than +1100 points, +3.6%, the S&P 500 gained +5.06%, the Nasdaq +6.05% and the small-cap Russell 2000 — still trying to catch up with the other main indices — grew +7.43% last week. The Dow is now at a 6-week high, while the S&P and Nasdaq are at 3-week highs. Year-to-date, we’re green across the board, led by and excellent +38.92% on the Nasdaq. Ahead of today’s opening bell, the Dow and Nasdaq are +40 points, and the S&P is +10.
We still have a deluge of Q3 earnings reports to sift through this week, but many of the big names — FAANG, for instance, along with Tesla (TSLA - Free Report) , Microsoft (MSFT), etc. — have already reported. Results haven’t exactly been on the level they were during the Great Reopening a couple years ago, but they’ve performed better overall than a plurality of analysts had expected. In fact, many expected we’d already be in a recession by now. We’re not, and we don’t see one on the immediate horizon, and this is as good a reason as any we’re seeing gains in the market.
There are a few key earnings reports due this week, such as Uber (UBER - Free Report) , TheWalt Disney Co. (DIS - Free Report) , Arm Holdings (ARM - Free Report) and Ralph Lauren (RL - Free Report) , to name but a few. Zacks Rank #1 (Strong Buy)-rated TripAdvisor (TRIP - Free Report) reports after the closing bell today. Following solid results from rivals Expedia (EXPE - Free Report) and Booking (BKNG - Free Report) last week, expectations are for TripAdvisor to post earnings growth of over +71% on +10% revenue growth. The company has beaten earnings estimates twice in the past three quarters.
Economic data settles down this week, giving some room for Fed members to speak publicly from today through Thursday. Fed Governors Cook and Waller, along with Fed Vice Chairs Barr and Jefferson and two appearance from Fed Chair Powell will be peppered throughout the week. There is plenty for them to speak on, including whether the Fed agrees with current market sentiment that interest rates have peaked for this cycle.
Thus, we’ll see if market indices coast higher on last week’s rocket boosters or if the Fed members will have cause to throw a wet blanket over the proceedings. We may also see investors feel for the ceiling of high valuation in stocks if they continue trading much higher. Then again, we may have weathered the final big storm of 2023, and from here to the end of the year we may test those mid-July highs. Wouldn’t that be something? Questions or comments about this article and/or author? Click here>>
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Pre-Markets Follow Strong Week in the Green Again
Last week for the stock market was uniquely eventful, in more ways than one. Not only did we see Q3 earnings reports heat up in quantity, it was also Jobs Week (ADP private-sector payrolls, JOLTS data, weekly jobless claims and Friday’s Employment Situation report) and the penultimate Fed meeting of the year, which did not result in a 25 basis-point (bps) interest rate hike.
As a result, market indices ran stronger than they have in a year, with the Dow up more than +1100 points, +3.6%, the S&P 500 gained +5.06%, the Nasdaq +6.05% and the small-cap Russell 2000 — still trying to catch up with the other main indices — grew +7.43% last week. The Dow is now at a 6-week high, while the S&P and Nasdaq are at 3-week highs. Year-to-date, we’re green across the board, led by and excellent +38.92% on the Nasdaq. Ahead of today’s opening bell, the Dow and Nasdaq are +40 points, and the S&P is +10.
We still have a deluge of Q3 earnings reports to sift through this week, but many of the big names — FAANG, for instance, along with Tesla (TSLA - Free Report) , Microsoft (MSFT), etc. — have already reported. Results haven’t exactly been on the level they were during the Great Reopening a couple years ago, but they’ve performed better overall than a plurality of analysts had expected. In fact, many expected we’d already be in a recession by now. We’re not, and we don’t see one on the immediate horizon, and this is as good a reason as any we’re seeing gains in the market.
There are a few key earnings reports due this week, such as Uber (UBER - Free Report) , The Walt Disney Co. (DIS - Free Report) , Arm Holdings (ARM - Free Report) and Ralph Lauren (RL - Free Report) , to name but a few. Zacks Rank #1 (Strong Buy)-rated TripAdvisor (TRIP - Free Report) reports after the closing bell today. Following solid results from rivals Expedia (EXPE - Free Report) and Booking (BKNG - Free Report) last week, expectations are for TripAdvisor to post earnings growth of over +71% on +10% revenue growth. The company has beaten earnings estimates twice in the past three quarters.
Economic data settles down this week, giving some room for Fed members to speak publicly from today through Thursday. Fed Governors Cook and Waller, along with Fed Vice Chairs Barr and Jefferson and two appearance from Fed Chair Powell will be peppered throughout the week. There is plenty for them to speak on, including whether the Fed agrees with current market sentiment that interest rates have peaked for this cycle.
Thus, we’ll see if market indices coast higher on last week’s rocket boosters or if the Fed members will have cause to throw a wet blanket over the proceedings. We may also see investors feel for the ceiling of high valuation in stocks if they continue trading much higher. Then again, we may have weathered the final big storm of 2023, and from here to the end of the year we may test those mid-July highs. Wouldn’t that be something?
Questions or comments about this article and/or author? Click here>>