Stocks fell for the second straight week with the S&P 500 dropping -1.4% as several mega-cap tech companies reported earnings that didn’t quite measure up to investors’ lofty expectations. International developed markets declined -1.0%.
Interest rates continued their march higher as the 10-year U.S. Treasury yield rose 0.14% to close the week at 4.37%, far above the mid-September low of 3.62%.
In a busy week for economic data, the Core Personal Consumption Expenditures Index showed inflation continues to cool, while the October jobs number was below expectations.
A look ahead
While Tuesday’s election will get most of the attention, investors will also be focused on the Federal Reserve’s policy meeting and Chair Powell’s press conference. The central bank is widely expected to lower interest rates by 0.25%.
This week will be the second busiest of third quarter earnings season with just over 20% of the S&P 500 scheduled to report. Several large healthcare companies will be in the spotlight.
Economic Releases: Consumer Confidence Index, ISM Services, Trade Balance, Consumer Credit, U. of Michigan Consumer Sentiment.
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