Last week, investors were faced for the first time with the need to cope with tense economic realities and higher oil prices.
Then the war between Hamas and Israel worked its way into the markets’ psyche.
To say that everyone is worried is an understatement.
Corporate CEOs rarely say much about the world around them. Jamie Dimon did it on Friday.
In his company’s third-quarter earnings report, JPMorgan Chase (JPM) – Get a free report The CEO noted: “The war in Ukraine, compounded by last week’s attacks on Israel, may have far-reaching impacts on energy and food markets, global trade and geopolitical relations. This may be the most dangerous time the world has seen in decades.
Dimon’s comments came as the banking giant reported generally upbeat third-quarter results.
Related: Why the IPO market can’t calm down?
The results of the week and even the first two weeks of October have not been disastrous, a relief after a tough September.
The major averages finished the week with small gains. The Dow Jones Industrial Average (^DJI) – Get a free report rose 0.8%. The Standard & Poor’s 500 Index (^EN) – Get a free report rose 0.5% and the Nasdaq composite index (^COMPX) – Get a free report made a profit of 0.2%. The 10-year Treasury yield ended at 4.63% after hitting 4.86% a week earlier, the highest yield for the bond since mid-2007.
Crude oil rose 5.8% on Friday. Gold rose 3.11%. JPMorgan rose 2.1% for the week. But Boeing (licensed in letters) – Get a free reportVulnerable to rising oil prices and global realities, it fell 1.2%.
Waiting for an invasion
Israel was massing its forces ahead of an attack on Gaza in retaliation for the Hamas attack that began on October 7.
The fact that an invasion has not begun may help explain why stock futures were trading higher Sunday night. Meanwhile, oil prices remained stable.
However, investors and the financial world will factor in those tensions, along with the ongoing war between Ukraine and Russia, as they gauge investment decisions.
The week will include economic reports that can move markets and a series of earnings reports that will attract attention, including from Tesla. (TSLA) – Get a free reportthird quarter report on Wednesday.
Tesla shares fell 3.9% last week partly due to concerns about global tensions and intensifying competition from Chinese automakers as well as giants like Mercedes-Benz. (DAIF) – Get a free report.
A week of great economic reports
They’re available:
Tuesday: September retail sales. Expect a small profit for the month.
Wednesday: Start of housing in the United States for September. The consensus is for a seasonally adjusted rate of 1.38 million, up slightly from August’s rate of 1.283 million units, the lowest since June 2020. Home sales have come under pressure from interest rate policy of the Federal Reserve.
Wednesday: The Federal Reserve’s Beige Book report, a narrative overview of economic conditions in the United States.
Thursday: Unemployment applications. This weekly report has shown repeatedly this year how strict working conditions have been.
Thursday: Main economic indicators for September. This report fell slightly in August and is expected to be lower this time.
Thursday: National Association of Realtors Existing Home Sales. As with housing starts, existing home sales have been hurt by higher rates and the reluctance of homeowners with low-rate mortgages to sell.
Earnings season intensifies
The rest of October and into November we will see hundreds of reports from Corporate America. The season starts mainly with banks, transport companies and more industrial companies.
In the coming weeks they will move on to the reports of large technology companies and energy giants. Large retailers come to the end of the season.
This week we will see 546 reports, which is a light week. On November 2 alone there will be 513 reports.
Monday: Financial services giant Charles Schwab (SOUTHWEST) – Get a free report It’s probably the biggest.
Tuesday: Bank of America (baccalaureate) – Get a free reportLockheed Martin (LTM) – Get a free reportGoldman Sachs (G.S.) – Get a free reportUnited Airlines (UAL) – Get a free reportJohnson and Johnson (JNJ) – Get a free report.
Wednesday: tesla (TSLA) – Get a free reportProcter & Gamble (P.G.) – Get a free report,Netflix (NFLX) – Get a free reportcasino giant Las Vegas Sands (LVS) – Get a free report.
Thursday: Communications giant AT&T (t) – Get a free reportairline giants American Airlines (AAL) – Get a free report and Alaska Air Group (ALK) – Get a free reportUnion Pacific railroad giants (ONE P) – Get a free report and CSX (CSX) – Get a free report.
Friday: American Express (AXP) – Get a free report and the oilfield services company Schlumberger (SLB) – Get a free report.
