John Hancock: Weekly Market Recap Week Ended October 15th

Earnings surprises

As of Friday, 80% of the S&P 500 companies that had reported third-quarter results exceeded analysts’ earnings estimates, according to FactSet. That so-called beat rate ranks above the 76% five-year average. Results were in from 8% of S&P 500 companies as of Friday, with many of the early reports coming in from major banks. 

Inflation spike persists

Amid rising energy costs and disruptions in global supply chains, the recent spike in U.S. consumer prices extended into September, picking up slightly from August’s level. The Consumer Price Index rose 5.4% compared with the same month a year earlier. The latest increase is roughly in line with the elevated levels seen in June and July. 

Retail resilience

Despite inflation concerns and the Delta variant’s spread, U.S. shoppers continued to spend at a steady clip in September. The government reported on Friday that sales at retail stores, restaurants, and online sellers rose a seasonally adjusted 0.7% compared with the previous month. Relative to September 2020, sales jumped 13.9%.

Slimmer growth outlook

The International Monetary Fund trimmed its global economic growth forecast for 2021. Its current 5.9% global GDP growth estimate is down one-tenth of a percentage point from an earlier forecast; the fund kept its 2022 growth forecast unchanged at 4.9%. This year’s revised outlook comes as the global trade is challenged by supply chain issues and many countries confront increasing COVID-19 cases.

Source: https://wmr.jhinvestments.com/