Our Market Update for the 2nd Half of October 2020

Our Market Update for the 2nd Half of October

We are back with our biweekly market update for the 2nd half of October! October was an active month with a swinging market complete with ups and downs – to be expected during a presidential election season with high volatility ratings. Be sure to read about our market volatility red flag warning to stay informed on what is happening in the market and be prepared for what the future may bring. If you need more assistance or would like to speak to our of our traders, we encourage you to reach out to by calling (800) 883-0524 or contacting us via email or our contact form. We are always happy to help! At FFR, we pride ourselves on being an active part of the finance community and working with both new and experienced traders alike. If you would like to view our market update for early October, head on over to our blog. Without further delay, let’s discuss our market update for the 2nd half of October starting with October 16th.

October 16, 2020
●  Indexes are higher after the September retail sales report showed an increase of 1.9%, beating consensus expectations of 0.7%
●  Washington continues to send mixed signals about the progress of a stimulus deal
●  September industrial production fell 0.6% when economists expected an increase of 0.6%; September capacity utilization was 71.5%
●  October consumer sentiment index came in at 81.2, higher than the estimated figure of 80.5

October 19, 2020
●  The broader market buckled in the absence of progress on fiscal stimulus and with a heavy week of earnings ahead
●  The October housing market index came in at 85, slightly topping expectations of 83

October 20, 2020
●  Stocks rebounded slightly, retaining their uptrend somewhat as talks of fiscal stimulus remain alive, albeit stalemated
●  Heavy selling yesterday was due to concerns that lawmakers were not making progress on a deal
●  Housing starts in September were 1.415 million when 1.463 million were expected and building permits were 1.553 million, which compares to the anticipated 1.520 million

October 21, 2020
●  Markets advance as investors await developments on a fresh stimulus bill
●  The indexes attempted to rally but that soon faded, though no real harm was done
●  Earnings also kept the market in check on a day where no major economic reports were to be released
●  The main story besides earnings is stimulus talks, which appear to be making progress but hasn’t yielded anything conclusive

 October 22, 2020
●  A rise in bond yields reshuffled stock market leadership on the way to a modest advance as investors await
●  Negotiators failed to announce a deal on Wednesday and will speak again today
●  Weekly jobless claims were better than expected. Jobless claims in the week ended October 17 were 787,000 when 865,000 were anticipated
●  The September existing home sales report showed that 6.5 million homes were sold, slightly above consensus expectations of 6.2 million

October 23, 2020
● Markets have fallen as investors weigh the potential for additional fiscal stimulus
●  Intel shares are leading the broader tech sector lower
●  The Dow and S&P 500 are on track to snap a three-week winning streak and the Nasdaq is headed for its first weekly loss in five weeks
●  More than a quarter of companies in the S&P 500 have reported through Thursday, and 83% of them have beaten analysts’ forecasts for earnings-per-share, according to FactSet.

October 26, 2020
●  U.S. stocks plunged today, the Dow falling -650 points, as coronavirus cases in Europe and the U.S. show evidence of a second wave
●  Tech stocks have also fallen from their leadership position
●  Negotiations in Washington continue over a fiscal stimulus package, though nothing fruitful is expected in the near-term.
●  Additionally, trade friction between the U.S. and China has been increasing
●  The September Chicago Federal Reserve national activity index was 0.27 when 0.39 was expected
●  The 9:00 central time September new home sales report came in at 959k, lower than the anticipated figure of 1,016,000
●  On the bright side, third quarter corporate earnings have been mostly stronger than estimated.

October 27, 2020
●  Indexes fell again, the Dow sliding -222 points
●  September durable goods orders increased by 1.9% when a gain of 0.4% was expected
●  The 9:00 central time October consumer confidence index came in at 100.9, slightly below the consensus figure of 102.0
●  Third quarter corporate earnings reports have been mostly stronger than estimated

October 28, 2020
Global stock markets sold off due to reduced confidence in the global economic recovery, with the Dow plunging a whopping -943 points. In addition, in the U.S., it is more likely that an economic relief package will not come until after the November 3 election
●  Mortgage applications in the U.S. increased 1.7% in the week ended October 23, according to the Mortgage Bankers Association. Home mortgage applications increased 0.2% and applications to refinance a home advanced 2.5%
●  Quarter 3 corporate earnings reports have been mostly stronger than estimated
●  Volatility will likely increase ahead of the election, is a good reason to reduce trading size or stand aside

October 29, 2020
●  We saw a modest bounce in the markets today as some good news was being absorbed by the markets
●  The U.S. third quarter gross domestic product increased a whopping 33.1%, one of the highest growth rates we’ve seen historically
●  Personal consumption expenditures advanced 40.7% when a gain of 38.9% was anticipated
●  Jobless claims in the week ended October 24 were 751,000 when 758,000 were estimated
●  On the technical side, indexes are forming what is known as a “double top,” and a break below “support” in the coming days may (or may not) confirm this formation

October 30, 2020
●  On Friday, stocks are headed for their worst week since March.

That concludes the day-by-day overview of our market update for the 2nd half of October. As active and interesting as the second half of October was for the markets, we are interested and excited to see what lies ahead for November as the results of the presidential election roll in. We anticipate a large amount of market volatility ahead, so be sure to stay tuned! You can sign up for email updates for our market update by contacting us or visiting our social media pages. We are active on Instagram, Facebook, Twitter, and LinkedIn. Above all, stay informed and keep growing every day! Happy trading, everyone!

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