John Hancock: Weekly Market Recap Week Ended November 1st
Fed drops rates
As widely expected, the Fed cut interest rates on Wednesday by 25 basis points, to a range of 1.5% to 1.75%. FOMC commentary hints that a December repeat is unlikely.
More new highs
The S&P 500 and NASDAQ climbed to record highs, topping previous records set in late July. The Dow wasn’t far behind, ending the week up 1.4%, less than a tenth of a percentage point below its record high.
Earnings trickle in
Roughly three-quarters of companies releasing third-quarter earnings so far—76% of S&P companies—reported earnings per share above analysts’ estimates, according to FactSet. More earnings are to come, yet misses reported by companies like Google/Alphabet may signal lower estimates for 2020.
Jobs well done
Employers added 128,000 jobs in October, handily beating expectations. Unemployment rose slightly to reach 3.6%, hovering just above September’s 50-year low of 3.5%.