Market indices: It was another positive week, with all 4 indices advancing at least 1%, led by the, which rose 1.64%. So far, October has been an important month for market gains. They set a closing record on Friday, knocking out a previous closing record of August 16.
Reuters reported:
Analysts have raised their expectations for S&P 500 earnings growth for the third quarter, forecasting a 34.8% year-on-year increase, from an expected increase of 31.9% at the start of the week, data shows Business activity picked up in October, as COVID-19 infections declined, although labor and raw material shortages hampered manufacturing. “
Volatility: The price fell 4.5% last week, ending at $ 15.43.
High dividend stocks: These high dividend stocks are ex-dividend this week: Antero Midstream (NYSE :), Prospect Capital (NASDAQ :), BP Midstream Partners (NYSE :), KNOT Offshore Partners (NYSE :), AGNC Investment (NASDAQ :), Broadmark Realty Capital (NYSE :), Cross Timbers Royalty Trust (NYSE :), Enterprise Products Partners (NYSE :), Main Street Capital (NYSE :), Phillips 66 Partners (NYSE :), Plains GP Holdings (NASDAQ 🙂 and Stellus Capital Investment (NYSE :).
Market place : 22 DJIA shares rose last week, up from 22 last week. 78% of the S&P 500 rose, up from 75% the week before.
FOREX: The United States fell further against most other major currencies last week.
Economic news
“The Chinese economy grew 4.9% in, compared to the same period last year; the period was significantly slower than the 7.9% increase recorded by the country in the previous quarter. Industrial production, the pillar of Chinese growth, fell sharply, especially in September, posting its worst performance since the early days of the pandemic.
“Two positives kept the economy from stagnating. Remained strong. And families, especially the more prosperous, started spending money again on restaurant meals and other services in September, as the China once again succeeded in quelling small outbreaks of the coronavirus, which rose 4.4% in September from a year ago.
Chinese officials are showing signs of concern, even though they have so far refrained from triggering a major economic stimulus. Now, real estate – especially the debt accumulated by developers and home buyers – constitutes a major threat to growth The country’s biggest promoter, China Evergrande Group (HK :), faces a serious cash shortage that is already spilling over to the economy.
“Construction has come to a standstill on some of the company’s 800 projects as suppliers wait to be paid. Several small developers had to scramble to meet the obligations payments. This could create a vicious cycle for the housing market. The worry is that developers may throw large numbers of unsold apartments onto the market, keeping homebuyers out as they watch to see how far prices can drop. (NY Times}
“US homebuilding fell unexpectedly in September and fell to its lowest level in a year amid acute shortages of raw materials and labor, raising expectations for a sharp slowdown in economic growth in the third quarter.
Tuesday’s Commerce Department report also showed home completions hit a 13-month low. It followed Monday’s announcement that production at US factories fell the most in seven months in September Strong demand as global economies emerge from the COVID-19 pandemic faces labor shortages, straining supply chains.
“fell 1.6% to a seasonally adjusted annual rate of 1.555 million units last month, the lowest level since April. Data for August has been revised down to a rate of 1.580 million units. units compared to previously reported 1.615 million units. Prices rise again after falling from records reached in May. Building materials, such as windows and electrical circuit breakers, are scarce. The pandemic has upended market dynamics work.
“Housing starts fell from the level of 1.725 million unit rates measured in March, which was more of a 14-and-a-half-year high.
“Single-family home starts, which account for the largest share of the housing market, remained unchanged at a rate of 1.080 million units last month. Starts of buildings with five or more units fell 5.1% to a rate of 467,000 units last month.
“Permits for future home construction plunged 7.7% to a rate of 1.589 million units in September. Single-family home permits fell 0.9% to a rate of 1.041 million units. Permits for buildings of five or more units fell 21.0% to a rate of 498,000 units. .
Home completions fell 4.6% to a rate of 1.240 million units last month. Single-family home completions remained unchanged at a rate of 953,000 units. Realtors estimate housing starts and completion rates for single-family dwellings must be between 1.5 million and 1.6 million units per month to close the inventory gap (Reuters)
Highlights of the coming week: The Q3 ’21 earnings season is gaining momentum, with the release of 10 DKIA stocks including Apple (NASDAQ 🙂 and Microsoft (NASDAQ :). 32% of the S&P 500 will report, including Amazon.com (NASDAQ :), Exxon Mobil (NYSE :), Comcast (NASDAQ 🙂 and Coca-Cola (NYSE :).
U.S. economic reports for the coming week
Sectors: Le and led this week, once again lagging behind.
Futures contracts: rose 2.33%, closing at $ 83.97, a new 7-year high, its highest close since 2014.
