Weekly Economic Update: October 25th, 2021

Presented by Nicholas Wealth Management

October 25th, 2021

 

Weekly Market Update

In this week’s recap: Strong week on Wall Street, despite concerns with inflation, supply chain, and other matters.

 

The Week on Wall Street

Stocks rallied last week on a stream of positive corporate earnings surprises.

The Dow Jones Industrial Average rose 1.08%, while the Standard & Poor’s 500 advanced 1.64%. The Nasdaq Composite Index gained 1.29% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, was up 0.23%.1,2,3

 

Earnings Ignite Rally

Fears over inflation, supply shortages, and slowing economic growth in China were pushed aside last week as investors reacted to a daily succession of positive corporate earnings surprises. After the Dow Industrials reached an all-time high intraday on Wednesday, fresh earnings reports, an increase in existing home sales, and a new pandemic low in initial jobless claims–and continuing claims–propelled the S&P 500 index to a new record high the following session.4,5

Disappointing earnings before the market opened on Friday hurt a few social media stocks, resulting in a choppy trading session and a selloff in the Nasdaq to close out the week.  

 

Solid Start to Season

Investors came into the earnings season anxious about whether businesses could extend the earnings growth momentum of recent quarters amid an increase in Delta infections, inflation, labor shortages, and supply-chain bottlenecks. The early results were encouraging. Of the 23% of companies comprising the S&P 500 index that have reported, 84% beat Wall Street consensus earnings estimates by an average of more than 13%.6

The earnings season may get more uneven in the coming weeks since many of the companies potentially affected by labor shortages and inflation have yet to report. Nevertheless, these better-than-expected earnings buoyed investor spirits and allowed stocks to build on their October gains.

 

Tip of the Week

While no one likes to think about their funeral, preplanned or prepaid funeral arrangements may be a financially smart move and may relieve your heirs of some stress when the time comes.
 

 

Media

Be sure to subscribe to our YouTube page for all of David’s media commentaries CLICK HERE!

Tesla has reported record deliveries, record production, and record net income. This is despite the haters, despite the short-sellers, and despite the supply chain woes. David Nicholas joined Stuart Varney on Fox Business last week, to discuss why Tesla is the preeminent electric car company right now.

 

 

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Investment advisory services offered through Bluepath Capital and Triumph Wealth Advisors. Nicholas Wealth, Bluepath Capital and Triumph Wealth Advisors are separate entities, and are not owned or controlled by WEG. This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note – investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

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CITATIONS:

1. The Wall Street Journal, October 22, 2021

2. The Wall Street Journal, October 22, 2021

3. The Wall Street Journal, October 22, 2021

4. CNBC, October 20, 2021

5. The Wall Street Journal, October 21, 2021

6. FactSet, October 22, 2021

Madison Luck

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