John Hancock: Weekly Market Recap Week Ended October 25th
Flirting with records
The S&P 500’s rise over the past three weeks moved the index on Friday to a level that was just one-tenth of a percentage point below the record high that it set three months earlier. The Dow and the NASDAQ had a little further to go, as both indexes were around 1% shy of their records.
Gaining momentum
Although the weekly gains weren’t huge—around 1%—the major indexes posted their strongest weekly results in a couple of months, thanks in part to a modest rally on Friday. Quarterly earnings results were mostly at or above expectations across the broad market.
Earnings catalyst
While quarterly profits are expected to decline this earnings season, a large proportion of the 40% of companies that had reported as of Friday had surpassed analysts’ expectations, providing some lift for stocks. About 80% of the S&P 500 companies that had reported third-quarter results exceeded earnings expectations, according to FactSet.
Fed ahead
The U.S. Federal Reserve is widely expected to cut interest rates for the third time in three months when it concludes a two-day meeting on Wednesday. Fed statements will be closely watched for any indications as to whether the latest reduction is likely to be the last one for this year or whether another cut could come at the Fed’s December meeting.
Source: https://wmr.jhinvestments.com/