What Happened Last Week

The S&P 500 Index declined 1.36 percent. The Nasdaq Composite Index declined 1.50 percent. The Dow Jones Industrial Average declined 0.15 percent.^1,2

Q3 Reports Uninspired

Stocks rallied early Wednesday after the gross domestic product report showed a strong economy that appeared on the path to a soft landing. However, stocks moved lower throughout the day as investors digested mixed Q3 reports from a few mega-cap tech names.^3,4

Stocks were under more pressure Thursday as disappointing outlooks for some key tech companies pulled the market down. A softer-than-expected jobs report on Friday unsettled investors, but stocks picked up as the day progressed, and attention shifted to how the Fed may interpret the jobs data.⁵

By Friday, the S&P fell for the second consecutive week while the Nasdaq's eight week winning streak came to an end.

Fed Back in Focus After Jobs Report

At its most recent meetings, the Fed has made it clear that it needed to balance the risks of both inflation and employment.

So Friday's jobs report that showed 12,000 jobs created in October caught some by surprise. Economists expected the Labor Department to report 100,000, down from September’s 223,000 jobs.⁶

Investors digested the data and determined the strike at a major aircraft manufacturer and two hurricanes caused the jobs report to fall short of estimates. Investors also appeared to believe the jobs report would prompt the Fed to move on rates at its two-day policy meeting, which ends on November 7.

Economic Data To Watch

Monday: Motor Vehicle Sales. Factory Orders.

Tuesday: Election Day.

Wednesday: FOMC Meeting – Day 1. EIA Petroleum Status Report.

Thursday: FOMC Meeting – Day 2. FOMC Announcement. Fed Chair Press Conference. Productivity and Costs.

Friday: Consumer Sentiment. Fed Official Michelle Bowman speaks.

^{Source: Investors Business Daily - Econoday economic calendar; November 1, 2024
The Econoday economic calendar lists upcoming U.S. economic data releases (including key economic indicators), Federal Reserve policy meetings, and speaking engagements of Federal Reserve officials. The content is developed from sources believed to be providing accurate information. The forecasts or forward-looking statements are based on assumptions and may not materialize. The forecasts also are subject to revision.}

Upcoming Earnings Reports

Monday: Vertex Pharmaceuticals Incorporated (VRTX)

Tuesday: Apollo Global Management Inc. (APO)

Wednesday: Qualcomm Incorporated (QCOM), Gilead Sciences, Inc. (GILD)

Thursday: Arista Networks, Inc. (ANET), Duke Energy Corporation (DUK), Airbnb, Inc. (ABNB)

^{Source: Zacks, November 1, 2024.
Companies mentioned are for informational purposes only. It should not be considered a solicitation for the purchase or sale of the securities. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and tolerance for risk. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. Companies may reschedule when they report earnings without notice.}

Footnotes and Sources

^{1. The Wall Street Journal, November 1, 2024}

^{2. Investing.com, November 1, 2024}

^{3. CNBC.com, October 30, 2024}

^{4. The Wall Street Journal, October 30, 2024}

^{5. The Wall Street Journal, November 1, 2024}

^{6. The Wall Street Journal, November 1, 2024}

^{Source: YCharts.com, November 2, 2024. Weekly performance is measured from Monday, October 28, to Friday, November 1. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.}