Market Perspective for October 28, 2019

The S&P 500 Index gained 0.56 percent on the day, reaching a new all-time high. The Nasdaq gained 1.01 percent.

Technology and healthcare powered the market’s advance. SPDR Technology (XLK) rose 1.27 percent and SPDR Healthcare (XLV) 1.03 percent. iShares PHLX Semiconductor (SOXX) gained 1.82 percent on the day. iShares Nasdaq Biotechnology (IBB) and iShares U.S. Medical Devices (IHI) rose 1.34 percent and 1.10 percent, respectively.

The Federal Open Market Committee meets this week. Speculators currently place the odds of an interest rate cut at 95 percent. If the Fed follows through as expected, the Fed funds rate will drop to a range between 1.50 percent and 1.75 percent.

The Bureau of Economic Analysis will report its first estimate of third quarter GDP on Wednesday. The economist consensus says 1.4 percent, while the Atlanta Fed’s model says 1.7 percent.

Friday brings the employment report for October. The consensus calls for 70,000 new jobs and sees the unemployment rate climbing to 3.6 percent. Wage growth is expected to be steady at 0.3 percent.

Motor vehicle sales for October and construction spending in September will be released Friday. Manufacturing PMIs are out as well. Economists predict an uptick in manufacturing activity.

The European Union gave Britain a three-month extension on Brexit. The British pound and the euro rallied against the U.S. dollar.

Monday saw reports from AT&T (T), Alphabet (GOOGL), NXP Semiconductors (NXPI), Walgreens Boots Alliance (WBA), Spotify (SPOT), Welltower (WELL) and Check Point Software (CHKP).

Tuesday brings Mastercard (MA), Advanced Micro Devices (AMD), Edison International (EIX), Shopify (SHOP), Merck (MRK), Pfizer (PFE), Chubb (CB), General Motors (GM), Mondelez (MDLZ), Amgen (AMGN), Cummins (CMI), Corning (GLW), Electronic Arts (EA) and Allstate (ALL).

On Wednesday, investors hear from Apple (AAPL), Facebook (FB), Starbucks (SBUX), General Electric (GE), Automated Data Processing (ADP), Apache (APA), Twlio (TWLO), CME Group (CME) and Etsy (ETSY).

Bristol-Myers Squibb (BMY), American Tower (AMT), Marathon Petroleum (MRO), Altria Group (MO), Exelon (EXC), Estee Lauder (EL), Wayfair (W), Celgene (CELG), United States Steel (X) and DuPont (DD) report on Thursday.

The week closes with earnings from Exxon Mobil (XOM), Chevron (CVX), Berkshire Hathaway (BRK.A), Abbvie (ABBV), Sempra Energy (SRE), Colgate-Palmolive (CL), Dominion Energy (D), Seagate (STX) and Novo Nordisk (NVO).

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