John Hancock: Weekly Market Recap Week Ended October 16th
Retail recovery
U.S. retail sales rose by a better-than-expected 1.9% in September. The latest gain marks the fifth consecutive monthly increase—a string that has returned retail sales to pre-pandemic levels and then some.
Earnings kickoff
Several of the major U.S. banks that opened quarterly earnings season reported that their third-quarter results were boosted by strong trading and investment banking revenue, and some banks set aside less money than in previous quarters to prepare for loan losses. Overall, companies across the S&P 500 are expected to report a roughly 20% decline in earnings, according to FactSet.
Industrial slowdown
U.S. industrial production fell 0.6% in September, snapping a four-month string of gains and posting the weakest result since last spring. The latest result reflected weakness in production of motor vehicles and electronics.
Tough climb
The major U.S. stock indexes climbed for the third week in a row, but at a far slower pace than in the previous two weeks, as the indexes’ weekly gains were less than 1%. Performance was choppy, as a big rally on Monday was offset by a comparably sized decline the next day.
Source: https://wmr.jhinvestments.com/