The major U.S. stock indexes rose for the fourth week in a row and the S&P 500 and the Dow topped record highs set in the previous week. The NASDAQ added nearly 3%, outperforming its peers by wide margins and besting a record that it had set about seven weeks earlier. The major U.S. stock indexes climbed around 6% to 7% in October, reversing the loss in September. For the S&P 500, it was the largest monthly increase since November 2020. With the Atlanta Braves on the cusp of winning the World Series, I have broken down this week’s news using quotes from Braves legend, Hank Aaron.
You've got to remember, the older you get the slower you get.— Hank Aaron
The U.S. economy expanded at an annual rate of 2.0% in the third quarter, below most economists’ expectations and marking the slowest quarterly growth since the pandemic triggered a sharp decline in early 2020. Supply chain disruptions and slower gains in consumer spending weighed on GDP growth over the past three months. As this new post pandemic bull market gets older the pace of growth should slow. The pace of economic growth is slowing but corporate profits continue to surge. Third-quarter profits at companies in the S&P 500 were expected to increase nearly 37%, based on companies that have reported so far and forecasts for firms that haven’t yet released earnings. That is even higher than the 33% gain that had been forecast and the main reason the market is at new highs.
Failure is a part of success.— Hank Aaron
Congress will soon be voting on an infrastructure bill. The bill will have much of the traditional infrastructure spending in the original proposal. However, President Biden failed to get through much of the human infrastructure he desired. What is human infrastructure? It involves things like healthcare, childcare, education, and job training. The human infrastructure measure was considerably scaled back in terms of cost and scope.
I am here to help at any time. If you would like to schedule a phone/web conference appointment, I have included a link to my calendar below and you can self schedule.