Monday, October 23rd 2023
Hi Oak Investors,
Welcome to another recap on the week’s action and events!
At Oak Investing, I look to provide value for all levels of investor, whether it’s pulling together the week’s best articles, insights and breaking news, or clarifying new concepts for beginners.
I hope you enjoy this week’s recap, please get in touch if there’s anything more you’d like to see in The Acorn. If you like what you see, please like, subscribe and share to keep growing the Oak Investor community! 🌳
Thanks,
Gordon
Summary 📝
Last week wasn’t pretty!
Investors have been used to a strange ‘bad news is good news’ cycle in the last few years, where weak economic data led the Fed to take less severe steps with interest rates, but now bad news just seems to be bad news again!
Housing sales are slowing, mortgage rates are climbing, and bond market prices are all over the place.
The S&P 500 fell 2.7%, NASDAQ slid an huge. 3.5% and the Dow Jones Industrial Average fell 2%.
The Volatility Index remains elevated, but still just below the magical 20 which people tend to pay more attention to.
At present, markets are pricing in a 99% chance of no change in rates at the next Fed meeting in early November, with a 1% of a cut in rates.
The Fear and Greed index is now back in Fear territory, at 27/100.
This week promises to be a huge one, with more earnings reports from the biggest companies in the market, plenty more Fed speakers, and critical inflation data.
As always, keep to your strategy, don’t let the noise change your plan, and learn as much as you can!
This Week in History 📰
Source- The History Place
October 27, 1904 - The New York City subway began operating, running from City Hall to West 145th Street, the first underground and underwater rail system in the world.
October 28, 1636 - Harvard University, the oldest institution of higher learning in America, was founded in Cambridge, Massachusetts
October 28, 1886 - The Statue of Liberty was dedicated on Bedloe's Island in New York Harbor. The statue was a gift from the people of France commemorating the French-American alliance during the American Revolutionary War.
Major Events This Week 🔬
Economic Events
Source- Unusual Whales
Tuesday
9:00 am S&P Case-Shiller home price index (20 cities)
9:45 am S&P flash U.S. services PMI
9:45 am S&P flash U.S. manufacturing PMI
Wednesday
10:00 am New home sales
Thursday
8:30 am GDP
8:30 am Initial jobless claims
8:30 am Durable-goods orders
8:30 am Durable-goods minus transportation
8:30 am Advanced U.S. trade balance in goods
8:30 am Advanced retail inventories
8:30 am Advanced wholesale inventories
10:00 am Pending home sales
Friday
8:30 am Personal income (nominal)
8:30 am Personal spending (nominal)
8:30 am PCE index
8:30 am Core PCE index
8:30 am PCE (year-over-year)
8:30 am Core PCE (year-over-year)
10:00 am Consumer sentiment (final)
Incoming Earnings Reports
Source- Earnings Whispers
Monday
CLF (afterhours) Implied Move: +/- 7.09% Sector: Basic Materials
LOGI (afterhours) Implied Move: +/- 7.9% Sector: Technology
Tuesday
GM (premarket) Implied Move: +/- 5.31% Sector: Consumer Cyclical
VZ (premarket) Implied Move: +/- 3.75% Sector: Communication Services
KO (premarket) Implied Move: +/- 2.48% Sector: Consumer Defensive
RTX (premarket) Implied Move: +/- 4.29% Sector: Industrials
GE (premarket) Implied Move: +/- 5.55% Sector: Industrials
MMM (premarket) Implied Move: +/- 4.38% Sector: Industrials
SPOT (premarket) Implied Move: +/- 9.18% Sector: Communication Services
GOOG (afterhours) Implied Move: +/- 4.91% Sector: Communication Services
SNAP (afterhours) Implied Move: +/- 16.64% Sector: Communication Services
MSFT (afterhours) Implied Move: +/- 4.33% Sector: Technology
V (afterhours) Implied Move: +/- 3.75% Sector: Financial Services
TDOC (afterhours) Implied Move: +/- 12.42% Sector: Healthcare
Wednesday
BA (premarket) Implied Move: +/- 5.03% Sector: Industrials
TMUS (premarket) Implied Move: +/- 4.09% Sector: Communication Services
META (afterhours) Implied Move: +/- 8.22% Sector: Communication Services
IBM (afterhours) Implied Move: +/- 4.28% Sector: Technology
QS (afterhours) Implied Move: +/- 12.46% Sector: Consumer Cyclical
Thursday
PCG (premarket) Implied Move: +/- 3.78% Sector: Utilities4.
MO (premarket) Implied Move: +/- 2.39% Sector: Consumer Defensive
AMZN (afterhours) Implied Move: +/- 6.46% Sector: Consumer Cyclical
F (afterhours) Implied Move: +/- 4.87% Sector: Consumer Cyclical
INTC (afterhours) Implied Move: +/- 6.69% Sector: Technology
VALE (afterhours) Implied Move: +/- 4.50% Sector: Basic Materials
X (afterhours) Implied Move: +/- 4.17% Sector: Basic Materials
CMG (afterhours) Implied Move +/- 6.57% Sector: Consumer Cyclical
Friday
XOM (premarket) Implied Move: +/- 3.28% Sector: Energy
CVX (premarket) Implied Move: +/- 2.88% Sector: Energy
ABBV (premarket) Implied Move: +/- 3.8% Sector: Healthcare
Chart of the Week 📈
Source- Chart of the Day
Consumers have been hearing a lot about inflation in the U.S. economy since early 2021, and rightfully so. At their pandemic-era peak, consumer prices were rising faster than at any point in 40 years.
But the dynamic seems to have shifted.
Inflation has been declining gradually, which means prices are still rising but at a slower pace, also known as disinflation. Some prices have actually deflated over the past year, according to the consumer price index.
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Thanks for reading, have a great day!
Gordon
Disclosure ✅
This newsletter provides general information only. Before making any financial or investment decisions, please consult a financial planner to take into account your personal investment objectives, financial situation and individual needs.