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Oct 03 2016

This Week’s Market Moving Events

Market Recap:

Stocks vacillated at the end of the third quarter, during which stocks (S&P 500) gained about 1 ½% – which isn’t bad considering that Q3 is historically the worst performing quarter of the year. High-quality dividend paying stocks – led by energy and telecom shares – performed very well during the quarter, while financial stocks continued to lag. The recent negative news headlines and problems facing Deutsche Bank and the new-account scandal facing Wells Fargo aren’t helping the image of the beleaguered sector (you’ll be happy to know that we have very little exposure to financial shares, and no exposure to Wells Fargo or Deutsche Bank).

 

Looking Ahead:

While politics and the Fed are dominating the headlines, many of the key drivers for equity market performance in the fourth quarter will be released this week. Amongst them are the critical motor vehicle sales and consumer spending reports, construction spending and factory orders, and of course the September Jobs report. Investors have spent the summer months fretting over the timing and impact of the next interest rate hike by the Fed. As data continues to be mixed, with the positive slightly outweighing the negative, this week’s reports could prove to be a turning point for some FOMC voting members who have been waiting on more data. A series of small disappointments could prove fortuitous for markets, while strong data will likely cause volatility (aka buying opportunities) as ‘fear’ of a December rate hike resurface.

 

This Week’s Market Moving Events:

Monday: Motor Vehicle Sales, PMI & ISM Manufacturing reports, Consumer & Construction Spending

Tuesday: Redbook Report, Chinese & Japanese economic data (after the close)

Wednesday: EU Retail Sales, International Trade, Factory Orders, ISM & PMI non-Manufacturing data.

Thursday: Chain Store Sales, Jobless Claims

Friday: September Employment Report