In Markets "In a Nutshell"

Markets “In a Nutshell” for October 21, 2024

Investment Week at a Glance

Stocks finished higher for the week. The Dow Jones Industrial Average rose 1.0%, the S&P 500 was up 0.9%, and the NASDAQ rose 0.8%. Foreign stocks (MSCI EAFE) were down, falling 0.8%. Bond prices were down for the week, with the 10-year U.S. Treasury ending the week at 4.08%.  (Data source: Wall Street Journal)

Markets Continue to Move Higher

Last week markets moved higher once again and have continued their rally since early August. Since August 5th, the market has rallied double digits, and the Dow Jones is up nearly 15% year-to-date. If the market can perform strongly for the rest of the year, the S&P 500 will have back-to-back years of a 20% or more return. This would only be the 6th occurrence in the past 75 years. This would also be the first time it has happened since the turn of the century. It has been impressive for the market to continue to move higher despite the worries we have seen the past couple of years with the Fed raising rates, inflation worries, war in Ukraine and the Middle East, and now a tight election race. This just goes to show the importance of staying invested because many did not expect such a strong market after a rough 2022.

3rd Quarter Earnings Season

This week kicks off the third quarter earnings season and next week we will get some big names like, Apple, Microsoft, Alphabet (Google), Amazon, and Meta (Facebook). Although the market moves on different news headlines, at the end of the day earnings is what matters most to markets. Earnings growth is expected to be 3.4% which would mark 5 straight quarters of earnings growth. 2025 earnings growth is expected to keep rising next year as well by 12.5% as the Fed begins its rate cut cycle and possibly boosts the economy. If we continue to see strong earnings growth, the market will be in a strong position going into 2025. When looking at the long-term, earnings and increase in market value have a strong correlation.

Quiz:

Who was the most profitable company in the United States in 2023? (Scroll Down for Answer)

  1.     Apple
  2.     Microsoft
  3.     Walmart
  4.     Tesla

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Answer below.

 

 

Have a Great Week!

 

 

 

 

 

 

 

 

 

 

 

Answer:

1.    Apple. In 2023, Apple had $99.8 billion in profit leading the way. Microsoft was 2nd with $72.7 billion.

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