Winthrop Partners’ Market and Economic Update 11-1-21

The Markets (as of market close October 29, 2021)

Solid corporate earnings data last week supported a strong week for equities. Investors’ fears that rising inflation, supply-chain snarls, labor shortages, and a surge in COVID-19 cases would hinder corporate earnings have yet to materialize. The Nasdaq led the benchmark indexes, followed by the S&P 500, the Dow, and the Russell 2000. The Global Dow dipped lower. Ten-year Treasury yields, gold, and crude oil prices fell, while the dollar advanced. Among the market sectors, consumer discretionary, communication services, and information technology increased the most, while energy, financials, industrials, and utilities decreased.

Wall Street opened the last week of October in fine fashion, as investors anticipated another spate of positive corporate earnings data. The Dow gained 0.2% and the S&P 500 rose 0.5%, each index closing at a record high. The big gainers were the Nasdaq and the Russell 2000, which added 0.9%. The Global Dow climbed 0.3%. Consumer discretionary, energy, and materials led the market sectors. Crude oil prices and 10-year Treasury yields dipped, while the dollar inched higher.

Last Tuesday proved to be another strong day for equities, with only the Russell 2000 failing to post a gain among the benchmark indexes listed here. The Dow was up 0.4%, and the S&P 500 rose 0.2% to eke out new record highs. The Nasdaq finished up 0.1% and the Global Dow advanced 0.3%. Crude oil and the dollar closed higher, while 10-year Treasuries fell for the fourth consecutive trading day. Most of the market sectors advanced, led by energy, utilities, and health care. Communication services and industrials declined.

The Dow and the S&P 500 fell last Wednesday after setting new records the previous day. The Russell 2000 and the Global Dow also drifted lower, while the Nasdaq was flat. Communication services and consumer discretionary were the only market sectors to advance by the close of trading. Energy fell 2.9% and financials dipped 1.7%. Ten-year Treasury yields closed below 1.60% for the first time in two weeks. Crude oil prices and the dollar also retreated.

Stocks rebounded last Thursday on another round of strong corporate earnings data. Real estate, industrials, and consumer discretionary helped drive the S&P 500 up 1.0% to a new record high. The Dow also recovered from Wednesday’s losses, gaining 0.7%, while the Nasdaq jumped 1.4% to reach a record high. Prices on 10-year Treasuries fell pushing yields higher. Crude oil prices rose to $83.13 per barrel. The dollar dipped nearly 0.5% against a basket of currencies.

Equities closed last week mixed, with the Dow, the S&P 500, and the Nasdaq posting gains, while the Russell 2000 and the Global Dow dipped lower. Ten-year Treasury yields fell on rising inflation and the prospect of interest-rate hikes. Crude oil prices and the dollar advanced. Communication services, health care, and information technology led the market sectors. Real estate, energy, utilities, and materials lost ground.

The national average retail price for regular gasoline was $3.383 per gallon on October 25, $0.061 per gallon more than the prior week’s price and $1.240 higher than a year ago. Gasoline production increased during the week ended October 22, 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 22 — 58,000 barrels per day more than the previous week’s average. Refineries operated at 85.1% of their operable capacity, up from the prior week’s level of 84.7%. Click here for the entire article: Winthrop Partners Market and Economic Outlook 11-1-21