| All data is for the week ended October 22, 2021 Stocks Major equities indices rose across the globe with the S&P 500 advancing1.66%, the Russell 2000 adding 1.14% and the NASDAQ rising 1.30%. Meanwhile the international developed markets (MSCI EAFE) rose 0.63% and the emerging markets (MSCI EM) gained 0.75%. Within the US, growth outperformed value and mid caps outperformed the other stocks by market capitalization. Real estate and health care were the best performing sectors while communication services and materials were the laggards.1 Fixed Income Federal Reserve chair Jerome Powell said it is time to begin tapering the Fed’s monthly asset purchases and warned that inflation is likely to remain elevated into 2022.2 The yield curve continued to flatten reflecting concerns about the rate of economic growth and persistence of inflation. The 2-year and 10-year treasury rates rose 7 basis points each, to 0.48% and 1.66%, respectively, while the 30-year rate edged up just 3 basis points to 2.08%.3 Commodities The price of West Texas crude oil achieved its ninth consecutive week of gains, based on front-month contracts — the longest streak going back to 19834 after Wednesday’s report that U.S. crude inventories fell for the first time in four weeks, down by 400,000 barrels for the week mid-October.5 That was less than consensus expectations for a 2 million barrel drop. Economic Data China reported 4.9% year-over-year growth in the third quarter, a big slowdown from the 7.9% recorded in the second quarter as construction output slowed.6 US industrial production fell 1.3% last month, below consensus expectations, after moving down 0.1% in August; output was previously reported to have risen 0.4% in August. In September, production of motor vehicles and parts fell 7.2%, as shortages of semiconductors continued to hobble operations, while factory output elsewhere declined 0.3%.7 Company News8 Abbott Laboratories (ABT), a Core Select holding, reported sales and earnings that were ahead of consensus expectations driven by their at-home Covid-19 test kits and heart-related medical devices.Management also raised earnings guidance for thefull year.9Shares rose 7.86% for the week. Koninklijke Philips NV (PHG), a G40i holding, reported earnings that were well ahead of expectations despite a small revenue shortfall vs. consensus.10Shares rose 7.85% for the week. Snap Inc. (SNAP), a G33 holding, shares declined following disappointing revenue and earnings together with lower growth guidance for the coming quarter.This provider of camera applications which allow people to communicate thru short videos saw a shortfall in revenues derived from advertising on its app as those customers face supply chain disruptions/product shortages.11 Shares were down 28.70% for the week. Did you know… Are you struggling to get up in the morning? Dysania is the inability to get out of bed in the morning Mariann Montagne, CFA Portfolio Manager Sources: 1 JP Morgan Weekly Market Recap 10-25-21 2 Reuters, “Federal Reserve Chair Says Time to Taper” 10-23-21 3 US Treasury 4 Marketwarch.com “U.S. oil benchmark hits 7-year high“ 10-25-21 5 Energy Information Administration 10-20-21 6 Reuters, “China’s economy stumbles” 10-18-21 7 Federal Reserve 10-18-21 8 All weekly changes in company stock prices: Yahoo Finance 9 Abbott Laboratories press release 10-20-21 10 Koninklijke Philips press release 10-20-21 11 Snap Inc. press release 10-21-21 |
| Advisory services are offered through American Retirement Advisors, Inc., a Registered Investment Advisor in the State of Michigan. Insurance products and services are offered through American Retirement Solutions an affiliated company. American Retirement Advisors, Inc. and American Retirement Solutions are not affiliated with or endorsed by the Social Security Administration or any government agency. The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the State of Michigan or where otherwise legally permitted. All written content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Moreover, this material has been derived from sources believed to be reliable, but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. |