John Hancock: Weekly Market Recap Week Ended November 7

Earnings Continue to Outperform

Even though major stock indexes ended the week lower, company earnings remained a bright spot. As of Friday, about 91% of S&P 500 companies had reported third-quarter results—and an impressive 82% topped profit expectations. That’s the strongest showing in four years and well above the long-term average of around 75%.

Data Gaps Create Uncertainty

With the government shutdown entering its sixth week, key economic data—such as the monthly jobs report—was unavailable, leaving investors guessing about labor market trends. However, private-sector figures provided some clues: Challenger, Gray & Christmas reported that employers announced 153,000 job cuts in October, nearly triple September’s total.

Tariffs Face Legal Scrutiny

The U.S. Supreme Court heard arguments this week challenging the authority used to enact tariffs earlier this year. While no decision date has been set, the eventual ruling could have significant implications for trade policy and market sentiment.

Market Volatility Creeps Higher

Investor nerves ticked up slightly, with the Cboe Volatility Index (VIX) climbing about 10% for the week after briefly hitting a three-week high on Friday. Still, the index remains well below the peaks seen in April, when tariff uncertainty rattled markets.

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