Weekly Stock Market Commentary | Research Financial Strategies

Weekly Market Insights: Stocks Mixed Ahead of Election

by Jim Streight | Oct 28, 2024 | Weekly Stock Market Commentary

Stocks were mixed last week as fresh economic data points and election-related uncertainty slowed market momentum.

The Standard & Poor’s 500 Index fell 0.96 percent, while the Nasdaq Composite Index rose 0.16 percent. The Dow Jones Industrial Average dropped 2.68 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, slid 2.30 percent.^1,2

Nasdaq Leads

Stocks were mixed for the first half of the week as investors geared up for a steady stream of Q3 reports. The 10-year Treasury yield continued to trend higher, which caught the attention of some traders.

Markets fell Wednesday morning with news that existing home sales fell to a 14-year low in October; still slowed by higher interest rates, sales are on track for their worst year since 1995. Also, pre-election jitters remained an undertow with traders.^3,4,5

News that durable goods orders rose in September buoyed sentiment a bit. At Friday’s close, the Nasdaq, fueled by technology names, marked its seventh consecutive week of gains but the S&P 500 broke its 6-week winning streak.^6,7

Election Focus

With the election cycle in full swing, some traders appear to be preparing for an uptick in volatility in the coming weeks.

In late August, nearly 90 percent of stock traded above their 20-day moving average. However, that momentum has slowed. On Tuesday, Standard & Poor’s reported that the number of stocks above their 20-day moving average fell to nearly 50 percent. Traders may be moving to more of a “risk off” position ahead of November 5.⁸

This Week: Key Economic Data

Tuesday: International Trade in Goods. Consumer Confidence. Case-Shiller Home Price Index.

Wednesday: Gross Domestic Product. Treasury Refunding Announcement. Pending Home Sales. ADP Employment Report.

Thursday: Personal Income and Outlays.

Friday: Employment Situation. ISM Manufacturing Index.

^{Source: Investors Business Daily – Econoday economic calendar; October 25, 2024}^{The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

This Week: Companies Reporting Earnings

Monday: Waste Management, Inc. (WM)

Tuesday: Alphabet Inc. (GOOG, GOOGL), Visa Inc. (V), Advanced Micro Devices, Inc. (AMD), McDonald’s Corporation (MCD), Pfizer Inc. (PFE)

Wednesday: Microsoft Corporation (MSFT), Meta Platforms, Inc. (META), Eli Lilly and Company (LLY), AbbVie Inc. (ABBV), Caterpillar Inc. (CAT), Amgen Inc. (AMGN), Booking Holdings Inc. (BKNG), Automatic Data Processing, Inc. (ADP), Starbucks Corporation (SBUX)

Thursday: Apple Inc. (APPL), Amazon.com, Inc. (AMZN), Mastercard Incorporated (MA), Merck & Co., Inc. (MRK), Uber Technologies, Inc. (UBER)

Friday: Berkshire Hathaway (BRK.A, BRK.B), Exxon Mobil Corporation (XOM), Chevron Corporation (CVX)

^{Source: Zacks, October 25, 2024}^{Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

“Keep your thoughts free from hate, and you need have no fear from those who hate you.”

– George Washington Carver

Is Your Office in a Historic Building? You May Be Eligible for a Tax Credit

To protect heritage sites and other history, the IRS implemented its rehabilitation tax credit, which offers an incentive to renovate and restore old or historic buildings. Here are some of the highlights to help you determine whether your building is eligible:

The credit may pay 20 percent of the qualifying costs of rehabilitating a historic building.
This 20 percent needs to be spread out over five years.
The credit doesn’t apply to the purchase of the building.
Taxpayers use Form 3468, Investment Credit, to claim the rehabilitation tax credit.

Although this credit might not significantly improve many situations, it’s still a step toward preserving our country’s history.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS⁹

Neck and Shoulder Stretches for Desk Potatoes

Many of us sit at a desk for hours a day and stare at a screen. These easy desk stretches can help:

Overhead side stretch: Put your arms over your head and lean in one direction while sitting up straight. Repeat on the other side.
Side-neck stretch: Gently put your hand on the back of your head and guide it to your chest. Then, instead of putting your head straight down, turn it slightly by looking at your thigh.
Neck-roll stretch: Relax and lean your head forward. Slowly roll your head to one side and hold for about 10 to 20 seconds, then slowly roll it to the other side.
Upper-trap stretch: Gently pull your head toward each shoulder. Hold on each side for 10 to 20 seconds.

Tip adapted from Healthline¹⁰

How many times can you subtract the number 75 from 7,500?

Last week’s riddle: How could Gail drive her car from Cleveland to Miami with a flat tire?
Answer: Her spare tire was flat, not any of the four tires she was driving on.

Humpback whale (Megaptera novaeangliae) breaching among of icebergs at Ilulissat Icefjord

Unesco World Heritage Site, Greenland

Footnotes and Sources

^{1. The Wall Street Journal, October 25, 2024}

^{2. Investing.com, October 25, 2024}

^{3. MarketWatch.com, October 23, 2024}

^{4. The Wall Street Journal, October 23, 2024}

^{5. The Wall Street Journal, October 23, 2024}

^{6. ABA Banking Journal, October 25, 2024}

^{7. CNBC.com, October 25, 2024}

^{8. The Wall Street Journal, October 25, 2024}

^{9. IRS.gov, April 30, 2024}

^{10. Healthline, July 24, 2024}

Weekly Market Insights: Sixth Week of Gains on Wall Street

by Jim Streight | Oct 21, 2024 | Weekly Stock Market Commentary

Stocks posted modest gains last week, with quarterly earnings season in full swing and the election on the horizon.

The Standard & Poor’s 500 Index increased 0.85 percent, while the Nasdaq Composite Index rose 0.80 percent. The Dow Jones Industrial Average advanced 0.96 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, fell 0.31 percent.^1,2

Six in a Row

Stocks bolted out of the gate as the week began. The S&P 500 and the Dow Industrials hit record highs, with the Dow crossing 43,000 for the first time.³

Midweek, news of stronger-than-expected retail sales report contributed to overall market momentum. Retail sales rose a seasonally adjusted 0.4 percent in September, topping economists forecasts.⁴

As the week wrapped up, the technology sector helped fuel a rally that pushed the S&P and Nasdaq to another record high. It was the sixth straight week of gains for the S&P 500, Nasdaq, and Dow Industrials.⁵

Insight from Corporate Reports

There were many market forces pushing each other around last week.

Corporate earnings reports drove much of the market action. Some of the most extensive financial stocks surprised on the upside, supporting a narrative that the economy remains strong.

At the same time, a corporate report from one of the world’s largest chip manufacturing contractors revealed continued strong global demand for AI microchips. However, increasing investor anxiety was a constant undertow in trading as the November elections drew nearer.⁶