News that Israeli soldiers are increasing their activities in Gaza caused volatility to flare up again. It was the worst week for the US stock benchmark in almost a month. The lowest level of the KBW Bank Index since September 2020 was reached. Stocks of Intel Corp. and Amazon.com Inc. surged on results. Treasury two-year rates fell as investors accepted a heated inflation indicator. The dollar dropped.
The third month of losses for US stocks began as bond rates spiked due to concerns about a Federal Reserve that remains too aggressive. Recent concerns about the Middle East conflict and a lacklustre corporate results season have reduced risk appetite.
Since fundamentals are still strong, the dramatic market selloff has been mostly driven by technical issues, according to Mark Hackett, head of investment research at Nationwide. This makes sense because the significant increase since October of last year was likewise primarily technical. Oversold circumstances and favourable seasonality should cause a rebound, but first sentiment needs to change, which may require a trigger or a period of surrender.
A Bloomberg Intelligence research shows that almost two-thirds of the stocks of S&P 500 index firms are trading below their 200-day moving averages. That portends severe pain for stock values as a number of corporations have reported weak results in the face of high interest rates and steadily rising bond yields.
October saw a five-month peak in US near-term inflation predictions as people’s pessimistic views about the economy were reinforced by their concern of increasing petrol costs. Consumer spending increased and the Fed’s preferred gauge of underlying inflation advanced to a four-month high in September, paving the way for another interest rate hike in the coming months.
Reversing a cut made only in August, Tesla Inc. increased the price of its Model Y Performance sport-utility vehicle by around $2,000 in China on Friday, according to its local website.
The Walt Disney Company is rearranging its film release schedule once more, pushing back three projects that were originally slated for release in 2019 and eliminating three more completely.
A day after it achieved labour peace through a tentative contract with the United Auto Workers, Ford Motor Co. said that its third-quarter earnings fell short of forecasts, blaming greater costs and inferior quality.
Chevron Corp. and Exxon Mobil Corp. reported dismal earnings despite lacklustre results from their chemical and oil-refining divisions.
Following the release of comparable sales data for the third quarter that above forecasts, Chipotle Mexican Grill Inc. saw a spike in shares.
One of the largest chains of auto dealerships in the US, AutoNation Inc., reported third-quarter earnings and revenue that above forecasts due to increased sales of new cars and expansion of its aftermarket repair division.
As demand for the more recent biologic medications Skyrizi and Rinvoq helped close the gap left by declining Humira sales, AbbVie Inc. increased its earnings projection for this year and the following.