US Stock Markets Ended Oct. 29, 2021
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The S&P 500 Index reached new all-time highs this week and returned 1.39% as markets digested the early 3Q21 earnings season. The large cap index rebounded from a negative September to finish October up over 6%: the strongest monthly return since November of 2020. Earnings season is in full swing with 279 of the companies in the S&P 500 having reported. 82% have beaten earnings expectations and 67% have beaten revenue expectations. The strongest results have come from Financials and Energy while Industrials have lagged. Supply chain issues have been a common theme among companies reporting in several sectors. Mentions of "supply chain" in quarterly earnings calls were up 58% during the 2Q21 earnings season versus 4Q20 and the current season is on track to be the highest in the 21st century. The largest companies in the S&P 500 reported this week as Tesla, Inc. (TSLA, +18.4%), Microsoft, Inc. (MSFT, +4.9%), Alphabet, Inc. (GOOGL, +6.0%), Amazon, Inc. (AMZN, 3.3%), Apple, Inc. (AAPL, 2.6%), and Facebook, Inc. (FB, -2.3%) collectively led the market higher. Tesla, Microsoft, and Alphabet all had stellar results, while Amazon, Apple, and Facebook struggled in the prior quarter. Mark Zuckerberg doubled down on efforts to promote the metaverse and announced that Facebook, Inc. is changing its name to Meta Platforms, Inc., effective in December. The top sector during the week was Consumer Discretionary which was fueled by a strong week by Tesla, Inc. while Financials was the worst performing sector during the week. Early reported estimates of 3Q21 GDP growth of 2% year over year indicated a significant slowdown in economic activity from the second quarter but still near or above the long-term goal of the Fed. In the week ahead we expect to see earnings results from oil stocks BP and Marathon Petroleum, and video game makers Activision Blizzard, Electronic Arts, and Take-Two Interactive, as well as news from the November Fed meeting on Wednesday.
Posted on Monday, November 1, 2021 @ 8:25 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.