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US Stock Markets Ended Oct. 15, 2021
The S&P 500 Index returned 1.84% last week, the best week since mid-July and seventh best week for the year. Equities shook off negative supply chain headlines and rallied on the strength of corporate earnings. The U.S. supply chain has been under duress as a result of the COVID pandemic. Inventory has been drying up as U.S. ports are clogged and freight via airlines has been held down by tepid passenger growth. President Biden held a summit with many supply chain organizations in an effort to alleviate some gridlock before the holiday shopping season. Despite supply issues, equities rallied as earnings season kicked off with some strong announcements last week. The S&P 500 had 20 names release quarterly results. Some of the more notable announcements were from mega cap banks. JPMorgan Chase & Co. had a strong earnings announcement along with a revenue beat. With $3.7t in assets, JPMorgan credited their strong earnings to investment bank revenue, trading revenue along with better-than-expected credit losses for their financial success last quarter. Bank of America Corp. had a similar story announcing earnings and revenue ahead of street expectations fueled by higher trading revenue and lower loan losses. Strong bank earnings announcements further confirm that the U.S. economy is on solid footing despite some supply chain and employment headwinds. UnitedHealth Group Inc. announced record revenue and earnings for 3Q and as a result shares rallied 4.80% last week. UnitedHealth also raised their full year earnings outlook on the strength of their business which helped to boost Cigna Corp. 3.37% and Anthem Inc. 4.69% since UnitedHealth's announcement. Looking ahead to next week, earnings season continues with 76 names in the S&P 500 expected to report quarterly results. Some notable names include: Tesla Inc., Netflix Inc., Honeywell International Inc., Union Pacific Corp. and American Express Co.
Monday, October 18, 2021 @ 8:20 AM
These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are 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.