Stock market outlook for October 2023
This implies diversifying risk exposures and focusing on companies with solid balance sheets and durable business models. The key, and the complication after the market’s how to remove pattern day trader status strong run year-to-date, is to find them at attractive valuations. The huge untapped potential in emerging markets acts as a positive catalyst for Edwards Lifesciences.
- The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy.
- “I think it’s going to continue to be tough just because we’re almost running out of (industry) groups,” he said.
- Investments in foreign markets entail special risks such as currency, political, economic, market and liquidity risks.
- Reliance upon information in this material is at the sole discretion of the reader.
- Additionally, disappointing corporate earnings into 2023 could also wipe out any gains in the market, as companies will be forced to revise their targets lower.
The group of energy stocks in the S&P 500 is falling 2.1%, making it the second-worst sector surpassed only utilities, which are tumbling 4%. Every stock in the S&P 500 Energy Index is trading lower Monday as West Texas Intermediate crude oil falls 1.5% to below $90 a barrel. Bank of America has a buy rating and a $21 price target on Warner Brothers Discovery. Ford could see the same $0.2 billion hit from a two-week strike in Chicago and its Michigan Assembly plant, he added. A wave of ether futures ETFs is hitting the market on Monday, expanding the ways investors can use ETFs to bet on cryptocurrencies.
Every energy stock in S&P 500 trades lower Monday as group drops more than 2%
McNally upgraded the stock to outperform from in line on Monday, and assigned a price target that implies shares could jump about 44.2% over the next 12 months. “RIVN has a brand that has stuck the US landing, and most importantly, within segments everyone already wants (SUV, Truck, Van),” he said in a note. Forty-one stocks in the S&P 500 hit fresh 52-week lows in midday trading Monday, including several energy and consumer names. Some notable growth stock funds were underperforming the major indexes during Monday’s market slump, even as the Nasdaq Composite outperformed. Technology, communications services and consumer discretionary were the only positive sectors in the broad market index.
CFRA’s Stovall said a normalization of inflation could encourage investors to dial up exposure. Wincrest Capital CEO Barbara-Ann Bernard believes investors should be cautious given the Federal Reserve’s move to finally tame inflation. Arguably how to buy santander shares in 2023 the biggest factor causing so much destruction in the markets is the policy pivot by the Federal Reserve as it aims to tackle inflation. The ARK Innovation ETF (ARKK), a proxy for riskier, speculative tech, has plunged about 59% this year.
- Resumption of the payment of quarterly dividend highlights its shareholder-friendly stance.
- He expects the S&P 500 to finish the year at 4,400, which is near current levels.
- He said the bank’s strategists were expecting the S&P 500 to touch a new high in mid-2024.
- The bill keeps the government operating for 45 more days, allowing more time for legislators to finalize funding proposals.
- Investors have been jittery since Fed Chair Jerome Powell warned interest rates could stay higher-for-longer at the Fed’s September policy meeting, which sparked a sell-off in equities while bond yields surged.
Oil stocks and natural gas stocks have put in strong outperformance in 2022. The Vanguard Energy Index Fund (VDE) is up about 24% despite a recent sell off. One of the key drivers for the U.S. economy is consumer spending, which accounts for roughly 70% of all economic growth.
The S&P 500 has averaged a 4.2% gain during the fourth quarter going back to 1950. So far, the most convincing argument a soft landing may be possible has been the resilience of the U.S. labor market. The Labor Department reported the U.S. economy added 187,000 jobs in August, exceeding economist estimates of 170,000 jobs added.
Zacks #1 Rank Top Movers for 10/03/23
For important information about the investment managers, please refer to Form ADV Part 2. Markets finally began outperforming the U.S., and Asia ex-Japan has led since the end of October compared to Europe and Japan, which have also outperformed the U.S. Overall, there are bright spots as well as sectors that may be overvalued.
That trend has been sparked by a confluence of factors paving the way for a slightly more affordable housing market. Home prices have been pushed higher over the past year due to a shortage of inventory, but the supply glut has eased over the last few weeks, Zillow said, with new home listings rising 4% month-per-month in August. The U.S. economy is also facing significant risks heading into the back half of the year. The New York Fed’s recession probability model estimates around a 70% chance of a U.S. recession within the next 12 months. If the stock market rally continues in the second half of the year, the market may need to find some new leadership. The Dow gained 3.8% in the first half of 2023, but most of those gains came in the second quarter.
This marked the first time the index turned negative in 2023, underscoring trouble among small-cap names. The Russell 2000 is often thought of as a better insight into the health of the broader economy due to its focus on smaller businesses. The Nasdaq was down 9% in February as of late Thursday morning, with just two trading days left in the month. Want to see how much sanctions from the United States and Europe against Moscow could hurt Russian businesses, stocks and its economy? Look no further than Yandex, the search engine often referred to as Russia’s Google.
Zacks #1 Rank Top Movers
While this induced a recession, it also tamed inflation and ushered in an unprecedented era of economic growth. But the stock market forecast for the next six months holds glimmers of hope. While the U.S. economy is showing signs of weakness and the global economic and geopolitical picture is gloomy, stocks have a chance of staging a stunning fightback. Those views run contrary to more bearish stock market forecasters, who say a recession is imminent as inflation potentially rebounds and the Fed keeps interest rates in restrictive territory. The Nasdaq briefly fell more than 20% below its all-time high before recovering a bit.
But in the second year, tech was down another 22% as measured by the Technology Select Sector Index. Meanwhile industrials, financials and materials were all positive, but investors missed it because they tried to buy what worked in the last bull market. Investors have chased back into the tech darlings, but seem less interested in the value stocks.
Dollar hits new high on upbeat data, yen teeters near intervention line
The company’s bullish long-term growth strategy buoys optimism on the stock. Analysts expected volatility in financial markets in the opening days of October after it was assumed Republicans and Democrats would fail to reach a deal to avoid a U.S. government shutdown prior to the October 1 deadline. The Fed is reaching a critical point in its battle against inflation, and the next couple of months may determine whether or not it can navigate a so-called soft landing for the U.S. economy without tipping it into a recession.
Since 1988 it has more than doubled the S&P 500 with an average gain of +24.17% per year. These returns cover a period from January 1, 1988 through September 4, 2023. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that how to buy cryptopunk particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations.
But Hogan believes we’re closer to the end of the stock market sell-off than the beginning. “If there is a silver lining to that historical data,” he said, “it is that any of the observations where the decline has started in the first half of the year, we got back to break-even by the end of the year every time.” “There’ll be a lot of unwinding of government shutdown selling from last week, which will be good,” he said. The Bank of Japan’s policymakers evaluated a number of conditions that must be met before ending the central bank’s ultra-loose policy during its September meeting. Wheat is up 1% Monday morning, after previously hitting a three-year low of 540 cents per bushel Friday. The wheat market declined more than 6% Friday on data putting U.S. wheat production above expectations.
Even though higher oil prices are a symptom of inflation, they also could lead to a pullback in consumer spending. With that in mind, the Fed may need to err on the side of caution and not raise rates too sharply. Over the long-term, corporate earnings growth and stock prices have a direct relationship, so if earnings aren’t growing, there’s a good chance stock prices aren’t either, at least until the outlook begins to improve. Against this backdrop, we believe it is prudent to stick with the late-cycle playbook in equities, as the economy has yet to embark on a new cycle of post-recessionary growth.
“A sequential decline in volumes was caused by planned downtimes for factory upgrades, as discussed on the most recent earnings call,” the company said. “Our 2023 volume target of around 1.8 million vehicles remains unchanged.” Internally, the biggest gains came from employment, new orders and production. The Institute for Supply Management’s manufacturing index for the month posted a reading of 49, 1.4 points better than August and a touch higher than the Dow Jones estimate for 48.