Monday, October 30th 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
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Summary 📝
More bad news for the market last week continued the decline since the highs seen in July beyond 10%, now in correction territory.
As bad as this sounds, it’s all part of the healthy mechanics of the market. With some tech companies disappointing last week, and the bond market continuing to confuse investors, there’s always going to be a lot of volatility.
S&P 500- 2.1%
NASDAQ- 2.23%
Dow Jones Industrial Average- 1.75%
The Volatility Index remains elevated, now slightly above the magical 20 which people tend to pay more attention to.
At present, markets are pricing in a 99.9% chance of no change in rates at the next Fed meeting in early November, with a 0.1% chance of a cut in rates.
The Fear and Greed index is now back in Fear territory, at 24/100.
This week promises to be a huge one, with more earnings reports from the biggest companies in the market, fallout from the latest FOMC meeting, and critical economic and employment 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
November 1, 1993 - The European Union came into existence as a result of the Maastricht Treaty.
November 3, 1534 - King Henry VIII became Supreme Head of the Church of England following the passage of the Act of Supremacy by Parliament.
November 4, 1922 - King Tut's tomb was discovered at Luxor, Egypt, by British archaeologist Howard Carter after several years of searching.
Major Events This Week 🔬
Economic Events
Source- Unusual Whales
Tuesday
8:30 am Employment cost index
9:00 am S&P Case-Shiller home price index (20 cities)
9:45 am Chicago Business Barometer
10:00 am Consumer confidence
Wednesday
8:15 am ADP employment
9:45 am S&P U.S. manufacturing PMI
10:00 am Job openings
10:00 am ISM manufacturing
10:00 am Construction spending
2:00 pm Federal Reserve decision on interest rates
2:30 pm Fed Chairman Powell press conference
Thursday
8:30 am Initial jobless claims
8:30 am U.S. productivity
8:30 am U.S. unit-labor costs
10:00 am Factory orders
Friday
8:30 am U.S. nonfarm payrolls
8:30 am U.S. unemployment rate
8:30 am U.S. hourly wages
8:30 am Hourly wages year over year
9:45 am S&P U.S. services PMI
10:00 am ISM services
Incoming Earnings Reports
Source- Earnings Whispers
Monday
SOFI (premarket) Implied Move: +/- 15.71% Sector: Financial Services
MCD (premarket) Implied Move: +/- 3.09% Sector: Consumer Cyclical
ON (premarket) Implied Move: +/- 7.12% Sector: Technology
PINS (afterhours) Implied Move: +/- 9.87% Sector: Communication Services
Tuesday
PFE (premarket) Implied Move: +/- 3.98% Sector: Healthcare
BP (premarket) Implied Move: +/- 3.74% Sector: Energy
JBLU (premarket) Implied Move: +/- 10.57% Sector: Industrials
CAT (premarket) Implied Move: +/- 4.90% Sector: Industrials
BUD (premarket) Implied Move: +/- 3.82% Sector: Consumer Defensive
AMD (afterhours) Implied Move: +/- 7.03% Sector: Technology
Wednesday
CVS (premarket) Implied Move: +/- 5.29% Sector: Healthcare
KHC (premarket) Implied Move: +/- 3.85% Sector: Consumer Defensive
APO (premarket) Implied Move: +/- 5.29% Sector: Financial Services
PYPL (afterhours) Implied Move: +/- 8.65% Sector: Financial Services
QCOM (afterhours) Implied Move: +/- 6.39%% Sector: Consumer Cyclical
ABNB (afterhours) Implied Move: +/- 8.08% Sector: Consumer Cyclical
DASH (afterhours) Implied Move: +/- 8.32% Sector: Communication Services
Thursday
PLTR (premarket) Implied Move: +/- 11.60% Sector: Technology
SHOP (premarket) Implied Move: +/- 9.43% Sector: Technology
PTON (premarket) Implied Move: +/- 16.58% Sector: Consumer Cyclical
SBUX (premarket) Implied Move: +/- 5.22% Sector: Consumer Cyclical
MRNA (premarket) Implied Move: +/- 9.08% Sector: Healthcare
AAPL (afterhours) Implied Move: +/- 3.88% Sector: Technology
SQ (afterhours) Implied Move: +/- 12.36% Sector: Technology
DKNG (afterhours) Implied Move: +/- 10.80% Sector: Consumer Cyclical
CVNA (afterhours) Implied Move: +/- 16.31% Sector: Consumer Cyclical
COIN (afterhours) Implied Move: +/- 11.22% Sector: Technology
Friday
D (premarket) Implied Move: +/- 5.51% Sector: Industrials
Chart of the Week 📈
Source- Chart of the Day
Consumers are taking on more debt - and face bigger risks from carrying a balance.
This holiday season, shoppers who ring up purchases on credit cards will pay more interest if they carry balances from month to month after the Federal Reserve's string of rate hikes.
The cost of borrowing has climbed as credit card delinquencies - the number of people not making payments toward their balance have ticked up, though the metric remains below the highs of the Great Recession.
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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.
Great overview! Another big week ahead.