Market Perspective for October 22, 2018

Equities were mixed on Monday. SPDR Technology (XLK) gained 0.83 percent and SPDR Financial (XLF) slid 2.17 percent. The Nasdaq index performance with an increase of 0.26 percent.

Third-quarter GDP growth will be out on Friday. The consensus forecast calls for 3.4 percent. The Atlanta Federal Reserve predicted 3.9 percent as of Monday. Their model’s final estimate will be out on Thursday.

Flash manufacturing PMIs are due on Tuesday. U.S. manufacturing PMIs improved in September while China and Europe weakened.

New home sales for September will also be out on Tuesday. Analysts see sales easing very slightly to an annualized pace of 620,000 from August’s 629,000.

The odds of a December rate hike stood at 84 percent on Monday. The market puts the odds of another hike by June 2019 at 80 percent.

The U.S. Dollar Index rallied 0.32 percent on Monday with Brexit troubles weighing on the pound and Italy weighing on the euro. Gold slipped 0.22 percent in response. Crude oil only managed to gain a nickel on the day.

Halliburton (HAL) beat earnings expectations on Monday, but its stock fell 3 percent on the day with the broader energy sector. The oilfield services company lowered fourth-quarter guidance to a range of 37 to 40 cents, below Wall Street’s consensus of 47 cents. After the bell, Zions Bancorp (ZION) reported earnings of $1.04 per share in the prior quarter, beating by 8 cents. Shares fell 3.45 percent in regular hours trading, but rebounded 2 percent following the announcement.

Caterpillar (CAT), 3M (MMM), Biogen (BIIB), McDonald’s (MCD), Illumina (ILMN), Lockheed Martin (LMT), Regions Financial (RF), Harley-Davidson (HDI) and Capital One Financial (COF) will report on Tuesday.

Advanced Micro Devices (AMD), Boeing (BA), Ford (F), Hilton (HLT), Boston Scientific (BSX), Illinois Tool Works (ITW), Freeport-McMoRan (FCX) and Equifax (EFX) will report on Wednesday.

On Thursday, investors will hear from Amazon (AMZN), Comcast (CMCSA), Baidu (BIDU), Celgene (CELG), Bristol-Myers (BMY), ConocoPhillips (COP), American Airlines (AAL) and CME Group (CME).

Colgate (CL), Phillips 66 (PSX), Charter Communications (CHTR), Rockwell Collins (COL), Goodyear (GT) and Moody’s (MCO) will close out the week.


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