Major stock indexes rose, with the S&P 500 (SPX) climbing for the sixth week in a row to a new record with gains of 0.85%. The Dow Jones Industrial Average (DJIA) rose by 0.96% on the week, also climbing to an all-time high. Meanwhile, the Nasdaq Composite (NDAQ) and the Nasdaq-100 (NDX) added 0.80% and 0.26%, respectively.
Last week, solid retail sales numbers and lower weekly jobless claims provided a boost to investor sentiment. In response to continued economic resilience, markets have lowered their expectations regarding both the number and size of rate cuts this year. However, the Fed apparently has much more room for monetary easing, since the prolonged softness in manufacturing, coupled with lower commodity prices, keeps a lid on inflation.
Three Economic Events
Here are three economic events that could affect your portfolio this week. For a full listing of additional economic events, check out the TipRanks Economic Calendar.
» September’s Existing Home Sales Change – Wednesday, 10/23 – This report measures the sales volumes and prices of existing single-family homes, condos, and co-ops nationwide. Existing homes account for over 90% of total home sales in the country. This report provides insights into the health of the housing market, which has significant implications for economic activity throughout the U.S.
» September’s Durable Goods Orders – Friday, 10/25 – This report measures the cost of orders received by manufacturers for durable goods, such as vehicles and electrical appliances. As those durable products often involve large investments, they are sensitive to the economic situation. The report helps assess the state of U.S. production activity and reflects the demand for big-ticket goods, which is dependent on the forecasted state of consumer sentiment and the economy in general.
» October’s Michigan Consumer Sentiment Index and UoM 5-year Consumer Inflation Expectations – Friday, 10/25 – These reports portray the results of a monthly survey of consumer confidence levels and consumers’ views of long-term inflation in the United States. The level of confidence affects consumer spending, which contributes about 70% of the U.S. GDP. The inflation expectations index is used as a component of the Fed’s Index of Inflation Expectations calculations.
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