Weekly Update – November 4, 2024
The Week on Wall Street
Stocks slid last week as mixed economic data and strong-but-not-spectacular Q3 corporate reports failed to inspire investors.
The Standard & Poor’s 500 Index fell 1.36 percent, while the Nasdaq Composite Index declined 1.50 percent. The Dow Jones Industrial Average edged down 0.15 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slid 0.96 percent.1,2
Q3 Reports Uninspired
Stocks rallied early Wednesday after the gross domestic product report showed a strong economy that appeared on the path to a soft landing. However, stocks moved lower throughout the day as investors digested mixed Q3 reports from a few mega-cap tech names.3,4
Stocks were under more pressure Thursday as disappointing outlooks for some key tech companies pulled the market down. A softer-than-expected jobs report on Friday unsettled investors, but stocks picked up as the day progressed, and attention shifted to how the Fed may interpret the jobs data.5
By Friday, the Nasdaq’s eight-week winning streak had ended, and the S&P fell for the second week.
Fed Back in Focus After Jobs Report
At its most recent meetings, the Fed has made it clear that it needed to balance the risks of both inflation and employment.
So Friday’s jobs report that showed 12,000 jobs created in October caught some by surprise. Economists expected the Labor Department to report 100,000, down from September’s 223,000 jobs.6
Investors parsed the data and determined the strike at a major aircraft manufacturer and two hurricanes caused the jobs report to fall short of estimates. Investors also appeared to believe the jobs report would prompt the Fed to move on rates at its two-day policy meeting, which ends on November 7.
THIS WEEK: KEY ECONOMIC DATA
Monday: Motor Vehicle Sales. Factory Orders.
Tuesday: Election Day.
Wednesday: FOMC Meeting – Day 1. EIA Petroleum Status Report.
Thursday: FOMC Meeting – Day 2. FOMC Announcement. Fed Chair Press Conference. Productivity and Costs.
Friday: Consumer Sentiment. Fed Official Michelle Bowman speaks.
THIS WEEK: COMPANIES REPORTING EARNINGS
Monday: Vertex Pharmaceuticals Incorporated (VRTX)
Tuesday: Apollo Global Management Inc. (APO)
Wednesday: Qualcomm Incorporated (QCOM), Gilead Sciences, Inc. (GILD)
Thursday: Arista Networks, Inc. (ANET), Duke Energy Corporation (DUK), Airbnb, Inc. (ABNB)
_________
1. The Wall Street Journal, November 1, 2024
2. Investing.com, November 1, 2024
3. CNBC.com, October 30, 2024
4. The Wall Street Journal, October 30, 2024
5. The Wall Street Journal, November 1, 2024
6. The Wall Street Journal, November 1, 2024