Winthrop Partners’ Market and Economic Update 10-25-21

The Markets (as of market close October 22, 2021)

Each of the benchmark indexes listed here advanced last week, led by the S&P 500, which rose 1.6%. Corporate earnings data for the third quarter has gotten off to a solid start to help push stocks higher. However, investors are paying close attention to elevated inflation, driven higher by global supply-chain constraints and labor shortages. According to Chair Jerome Powell, the Federal Reserve is closely monitoring price pressures, which may last longer than previously expected, increasing the possibility that the Fed may raise interest rates sooner than anticipated. Treasury yields and crude oil prices rose last week, while the dollar slid. Gold prices climbed higher but remain well below their 2020 year-end values. The market sectors closed last week generally higher, with only communication services lagging. Real estate (3.2%), health care (2.9%), and financials (2.8%) led the advancing sectors.

Stocks opened last Monday mixed, with megacaps and growth stocks outperforming value shares and cyclicals. The Nasdaq gained 0.8%, followed by the S&P 500 (0.3%) and the Russell 2000 (0.1%). The Dow (-0.1%) and the Global Dow (-0.2%) dipped. Crude oil prices slid, while Treasury yields and the dollar advanced. The market sectors were mixed, with consumer discretionary, information technology, and communication services advancing, while utilities, energy, and industrials slipped.

More solid corporate earnings data helped drive stocks higher last Tuesday. The Nasdaq and the S&P 500 each advanced 0.7%, while the Dow gained 0.6%. The Global Dow added 0.5% and the Russell 2000 increased 0.3%. Ten-year Treasury yields increased 322 basis points to close at 1.63%. Crude oil prices rose to $82.87 per barrel. The dollar edged lower. Among the market sectors, only consumer discretionary failed to advance. Health care, energy, and utilities rose by more than 1.0%.

Another day of favorable corporate quarterly earnings data helped push the Dow and the S&P 500 higher last Wednesday. The Nasdaq slipped 0.1%. The Russell 2000 and the Global Dow also advanced. Treasury yields inched higher, the dollar dipped lower, while crude oil prices climbed to over $84.00 per barrel. Health care, real estate, and utilities each rose over 1.5% on a day that saw several of the market sectors advance.

Consumer discretionary shares helped push the S&P 500 up 0.3% to reach a record high last Thursday. The Nasdaq led the benchmarks after climbing 0.6%. The Russell 2000 also advanced 0.3%. The Global Dow dropped 0.6%, while the Dow was flat. Ten‐year Treasury yields and the dollar increased, while crude oil prices fell to $82.67 per barrel.

Stocks closed mixed last Friday, with the Dow edging up 0.2% to reach a record high. The Global Dow, the only other index to post a gain, inched up 0.1%. The Nasdaq fell 0.8%, the Russell 2000 dipped 0.2%, and the S&P 500 dropped 0.1%. Ten-year Treasury yields and the dollar slid, while crude oil prices rose. The market sectors also returned mixed results last Friday, with consumer staples, energy, financials, health care, industrials, real estate, and utilities advancing, while communication services, consumer discretionary, information technology, and materials fell.

The national average retail price for regular gasoline was $3.322 per gallon on October 18, $0.055 per gallon more than the prior week’s price and $1.172 higher than a year ago. Gasoline production increased during the week ended October 15, averaging 10.1 million barrels per day. U.S. crude oil refinery inputs averaged 15.0 million barrels per day during the week ended October 15 — 71,000 barrels per day less than the previous week’s average. Refineries operated at 84.7% of their operable capacity, down from the prior week’s level of 86.7%. Click here for full commentary: Winthrop Partners’ Market and Economic Outlook 10-25-91