Stocks had a mixed outing this week after suffering heavy losses in the week prior. The benchmark S&P 500 finished flat, leaving its October loss at 5.0%, and the blue-chip Dow ticked up 0.4%. Conversely, the tech-heavy Nasdaq fell 0.6%, and the small-cap Russell 2000 lost 0.3%.
The third quarter earnings season ramped up this week after kicking off last Friday. Financial companies Goldman Sachs (GS), Morgan Stanley (MS), Bank of America (BAC), U.S. Bancorp(USB), Charles Schwab (SCHW), and BlackRock (BLK) reported mostly better-than-expected profits, helping to boost the S&P financial sector 0.8% higher.
The minutes from the September FOMC meeting were released on Wednesday, showing that officials generally agreed on the need for more gradual rate hikes. In addition, the minutes revealed that a number of officials saw the need to hike rates above levels expected to prevail over the long run. The probability of a December rate hike remains high, ticking up to 83.7% from 79.8% last week, according to the CME FedWatch Tool.
As for the 11 S&P 500 sectors, they finished the week pretty evenly mixed between green and red. Defensive groups like consumer staples (+4.3%), utilities (+3.1%), and real estate (+3.2%) were the top performers, while growth-sensitive groups like consumer discretionary (-2.0%), energy (-1.9%) and materials (-1.4%) finished at the bottom of the sector standings.
Elsewhere overseas, China's Shanghai Composite touched a new four-year low this week due to investor concerns over slowing economic growth. On Friday, China reported 6.5% year-over-year GDP growth, less than the prior quarter's growth of 6.7% and less than the expected growth of 6.6%. Meanwhile, the Euro Stoxx 50 advanced 0.5% this week despite continued angst that the Italian budget situation could get nasty.
Macro :
- Italian Populists Struggle to Stay United as Pressures Mount
- Goldman Says Stocks Likely Turning Into Drag on U.S. Growth
Keep an eye on :
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- MT NA : Essar Steel Lenders Declare ArcelorMittal Highest Bidder: CNBC
- AZN LN : AstraZeneca gets cancer trial boost for Lynparza drug - FT
- GBF GY : Bilfinger Sees U.S. Bribery Case Closing by End of Year: FAS
- BP/ LN : Aker BP Leads Rebound as Revenue Beats Estimates: EU Energy Wrap
- DAI GY : Daimler's List of Excuses Gets Longer and Longer: Chris Bryant
- ERG IM : ERG Gives Workers EU1.1M in Shares to Celebrate 80th Anniversary
- ERG IM : *ERG TO INVEST IN WIND POWER, GROW ABROAD INCL. IN U.K.: STAMPA
- EKT SM : Euskaltel says Zegona bid confirms strength of corporate project, Zegona wants to raise its stake to just below 30%
- GALP PL : Dos Santos May Be Willing to Sell Indirect Galp Stake: Expresso
- HAW GY : Hawesko Adjusts View on Subsidiary Fraud Case, ’Long Hot Summer’
- JPR LN : Johnston Press Activist Buys Shares to Block Some Resolutions
- MRK GY : Pfizer, Merck KGaA’s Bavencio Hits First Target in Kidney Cancer
- MOR GY : Morphosys Sees MOR208 Gaining FDA Approval by Mid 2020: Welt
- NANO FP : Nanobiotix’s NBTXR3 Phase 2/3 Meets Primary, Secondary Endpoints
- NOVN SW : Novartis’s Alpelisib Improved PFS in Phase 3 Study
- PIRC IM : Camfin Board Resolves to Increase Pirelli Stake by up to 2%
- RDSA LN : Egypt Says Output Starts From First Well in Shell’s 9B Gas Field
- ROG SW : Roche’s Tecentriq Improves OS in Some Breast Cancer Patients
- SAN FP : Regeneron, Sanofi: FDA Approves Asthma Indication for Dupixent
- STAN LN : Standard Chartered Plans New Round of Job Cuts: FT
- SREN SW : Swiss Re possibly interested in Anbang Insurance stake, acquisition of Vivat - Telegraaf
- UCG IM : B&C Rejects ‘Hostile Takeover’ Attempt After UniCredit Report