By Bill Hornbarger, Chief Investment Officer
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Three Things to Watch
- The retail sector will be front and center and investors will be looking for signs for the health of the consumer and any clues on what the holiday season will look like. Some of the world’s largest retailers will be out with earnings this week, including Lowe’s, Home Depot, Macy’s, Target, and Walmart. Retail sales for October will be released on Wednesday and are expected to be up 1% (month over month) and 0.2% excluding autos and gas stations.
- Other economic releases include the Producer Price Index for March (consensus is for a year- over-year increase of 8.4%), Housing starts and existing home sales. Housing activity continues to decelerate as mortgage rates are at/near the highest levels in two decades.
- On Friday, the leading index of economic indicators for October will be released and are expected to be down 0.4%. That would be the eighth consecutive month of a negative reading, a development historically indicative of a looming recession.
Three Things to Know
- Even after last week’s rally, Apple, Microsoft, Amazon, Alphabet, and Meta Platforms have lost more than $3 trillion in market value this year and their collective weighting in the S&P 500 index has fallen from a record 24% in late 2020 to 19% currently. (Source: Bloomberg)
- Last Thursday’s 1,201 point gain (3.7%) for the Dow Jones Industrial Average was the sixth- largest point gain on record for the index but did not crack the top 20 in terms of percentage gains. (Source: Wikipedia)
- The Strategic Petroleum Reserve is at its lowest level since 1984 and is down approximately 38% this year. (Source: Bloomberg)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.