Third quarter earnings season got under way last week. Financial companies kicked off the proceedings with a mixed bag of results. JPMorgan saw their profits increase and Citigroup lost less than analysts had estimated. Scandal-plagued Wells Fargo posted a 56% drop in earnings while Goldman Sachs saw theirs skyrocket 93%. Airlines were next up and reported widening losses, as expected. All-in-all the results were stronger than projected.
U.S. stocks had a volatile week and ended with a slight gain. Investors are being pulled between a flood of good news/bad news. Optimism abounds for third quarter earnings. Even though they have just gotten started, the numbers are coming in better than anticipated. On the other hand, concerns are mounting that job growth is beginning to stall. The number of people filing new applications for unemployment benefits rose last week to the highest level since late August. Expectations are for more layoffs to occur as restrictions for receiving stimulus money from the federal government expired at the beginning of October. Investors also continue to be concerned over a lack of additional stimulus aid from the government. Fed Chairman, Jerome Powell, has stressed the need for funds for struggling families and small business owners. Oh, and did I forget to mention we have two weeks left for the presidential election. Investors have much to be concerned about.
A couple of weeks ago, I showed a chart similar to the one below that illustrated the bull & bear market periods. I found the chart below fascinating and wanted to share it with you. It shows how the markets have performed while the sitting president was a Republican or Democrat (red vs. blue bars). It does a wonderful job of stressing the point that it doesn’t matter which party controls the White House. It’s about the economy.
If you have any questions, please let me know.
The Markets and Economy
Offices in Chicago, Kansas City, St. Louis, Naples & Valparaiso.
The Standard & Poor’s 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general. The Dow Jones Industrial Average is a price-weighted index of 30 actively traded blue-chip stocks. The NASDAQ Composite Index is an unmanaged, market-weighted index of all over-the-counter common stocks traded on the National Association of Securities Dealers Automated Quotation System.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Consult your financial professional before making any investment decision. You cannot invest directly in an index. Past performance does not guarantee future results.
Note: All figures exclude reinvested dividends (if any). Sources: Bloomberg, Dorsey Wright & Associates, Inc. and The Wall Street Journal. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested into directly.
Securities offered through Triad Advisors, member FINRA/SIPC. Investment advice offered through Resources Investment Advisors, LLC, an SEC-registered investment adviser. Resources Investment Advisors. LLC and Vertical Financial Group are not affiliated with Triad Advisors.