Global equity markets finished lower for the week. In the U.S., the S&P 500 Index closed the week at a level of 5808, representing a decline of 0.96%, while the Russell Midcap Index moved -1.89% last week. Meanwhile, the Russell 2000 Index, a measure of the Nation’s smallest publicly traded firms, returned -2.99% over the week. As developed international equity performance and emerging markets were lower, returning -1.98% and -1.75%, respectively. Finally, the 10-year U.S. Treasury yield moved higher, closing the week at 4.24%.
As it seemed like the release of economic data was on pause, Markets were choppy throughout the past week. Equity Markets advance and decline in response to corporate earnings for the third quarter released during the week. Weekly jobless claims and Durable Goods Orders for September were released at the end of the week.
Corporate earnings for the third quarter dominated the news flow last week. Utilizing FactSet data, we will highlight the aggregate results thus far. As of Friday, 37% of S&P 500 companies have reported results for the third quarter. Of the reporting companies 75% have had a positive EPS result as compared to the consensus estimate. On the revenue front, 59% of the reporting companies have exceeded their consensus estimate. Earnings growth rate for this sample was 3.6% on an annual basis. Third quarter earnings season will continue, with the upcoming week of particular interest. Big Tech is at the forefront.
New applications for unemployment benefits fell last week, dropping 15,000 to 227.000. This result was well below the consensus estimate of 247,000. Continuing claims rose by 28,000 to 1,897,000. This represents the highest level in nearly three years. The second consecutive weekly decline in fillings for unemployment aid likely reflected an ebb in claims from the two hurricanes that occurred within the past number of weeks.
The Commerce Department released a report on Friday showing new orders for U.S. manufactured durable goods fell by more than expected in the month of September. Durable goods orders slid by 0.8%. Economists had expected durable goods orders to fall by 0.5% The larger than expected decline came as orders for transportation equipment tumbled by 3.1% percent in September. The ongoing Boeing labor strike is reflected in these results.
Best wishes for the week ahead!
Equity and Fixed Income Index returns sourced from Bloomberg on 10/25/24. Corporate earnings data is sourced from Factset. Jobless claims are sourced from the Labor Department. Durable Goods Orders are sourced from the commerce Department. Economic Calendar Data from Econoday as of 10/25/24. International developed markets are measured by the MSCI EAFE Index, emerging markets are measured by the MSCI EM Index, and U.S. Large Caps are defined by the S&P 500 Index. Sector performance is measured using the GICS methodology.
Disclosures: Past performance does not guarantee future results. We have taken this information from sources that we believe to be reliable and accurate. Hennion and Walsh cannot guarantee the accuracy of said information and cannot be held liable. You cannot invest directly in an index. Diversification can help mitigate the risk and volatility in your portfolio but does not ensure a profit or guarantee against a loss.