As we head into the final stretch of the year, the US stock market continues to show resilience and strength. On Monday, both the S&P 500 and the Dow Jones Industrial Average reached record highs, marking the S&P 500’s 46th record close of the year.
Investors are eagerly awaiting a wave of third-quarter earnings reports, with over 80 S&P 500 companies set to release their results this week. Major players like Netflix, Goldman Sachs, and Morgan Stanley are among those scheduled to announce their earnings.
So far, data from Fundstrat shows that 6% of S&P 500 companies have already reported their third-quarter results. An impressive 74% of these companies beat profit estimates by a median of 6%, while 58% exceeded revenue estimates by a median of 2%.
On the economic front, this week might be relatively quiet in terms of data releases. However, investors will be paying close attention to Thursday’s reports on September retail sales and initial jobless claims. These figures will provide valuable insights into consumer behavior and the job market.
Federal Reserve Governor Christopher Waller recently emphasized caution regarding future interest rate cuts, noting the strength of the current economy. Waller stated that data on inflation, the labor market, and economic activity will play a crucial role in determining future monetary policy decisions.
Market expectations currently point to a 25-basis point interest rate cut at both of the Federal Reserve’s remaining FOMC meetings this year in November and December.
In terms of commodities, bonds, and crypto, West Texas Intermediate crude oil, Brent crude, gold, and Bitcoin have all seen price movements. These fluctuations reflect ongoing market dynamics and geopolitical developments.
As the year winds down, investors will continue to closely monitor earnings reports, economic indicators, and central bank policies to navigate the ever-changing financial landscape. Stay tuned for more updates and insights from Extreme Investor Network as we cover the latest developments in the world of finance.