By Alex Hartley, Financial Reporter, Pubco Insight
Nov. 17, 2023
As we wrap up another week in the financial markets, it’s evident that investors and traders have ridden a rollercoaster of economic signals and corporate earnings. Today, the stock market indexes marginally edged lower, but the overall sentiment remains cautiously optimistic.
Today’s Market Behavior
Despite a slight downtrend today, all three major indexes – DJIA, S&P 500, and Nasdaq – are aiming for weekly gains. This uptick is largely attributed to the cooling inflation figures and growing confidence that the Federal Reserve might steer the economy towards a “soft landing”.
The Week That Was
The highlight of this week was undoubtedly the performance of the S&P 500, which has seen an upward trend for 12 out of the past 15 sessions. This bullish behavior signals a market responding positively to the latest inflation data and earnings reports.
Earnings season is nearing its end, and most S&P 500 companies have reported. Notably, Gap’s shares soared following robust results, mirroring a similar surge for Ross Stores. However, it wasn’t all good news – Applied Materials saw a dip after disappointing earnings.
In a remarkable turnaround, Target shares leaped by more than 20% this week, marking its best weekly performance since 2019, buoyed by stronger-than-expected profits.
Oil and Bonds
Oil prices experienced a minor hike today, yet the main U.S. benchmark WTI is down 20% from its peak in late September, hinting at subsiding inflationary pressures. On the bonds front, the 10-year Treasury yield nudged up to around 4.46%.
Global Markets and Housing Data
While European stocks experienced a rise, Asian markets showed mixed results. Alibaba’s stock remained under strain following the cancellation of its cloud arm’s spinoff. In the U.S., housing starts in October went up by 1.9%, showing improvements in both single- and multi-family constructions.
As investors and traders gear up for the upcoming week, it’s crucial to stay informed. Our new Sunday podcast, “WSJ’s Take On the Week,” and our daily newsletters offer invaluable insights into what the markets might hold.
This week’s market activity has shown resilience amid varying economic indicators. While today’s slight decline is worth noting, the overall trend suggests a market adapting to changing economic landscapes. As always, staying updated and making informed decisions will be key for those navigating these financial waters.
Alex Hartley, Pubco Insight
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