Market Update: Oct 13th

Stock markets experienced a significant drop on Friday, concluding a week filled with volatility. The key factors contributing to the decline included a sudden surge in oil prices and increasing inflation expectations. This article delves into the events and influences that led to the market’s downturn.

Market Overview

The stock market faced headwinds on Friday, with the S&P 500 losing 0.5%, the Dow Jones Industrial Average making a modest gain of about 37 points, or 0.1%, and the Nasdaq Composite shedding 1.2%. These declines followed a week marked by turbulence and uncertainty.

Consumer Sentiment and Inflation

Consumer sentiment data, released by the University of Michigan, played a pivotal role in the market’s descent. The survey showed a significant slump in consumer sentiment for the month of October, coinciding with a notable spike in inflation expectations. This combination of decreased confidence and rising concerns about inflation has clearly unnerved investors.

Oil Prices and Geopolitical Tensions

The S&P 500 reached its lowest point during the trading session as oil prices surged by more than 5%. This sharp increase in oil prices was driven by concerns that the Israel-Hamas conflict might escalate geopolitical tensions in the Middle East. As a result, the WTI crude oil market was on track for its most substantial weekly gain since September 1.

Treasury Yields and Their Impact

Another crucial factor influencing the market’s decline was the behavior of Treasury yields. The yield on the 10-year Treasury was down by 9 basis points, settling at 4.621%, while the 2-year Treasury yield dropped by nearly 3 basis points, reaching 5.043%. Investors should understand that there is an inverse relationship between bond yields and their prices.

According to Adam Turnquist, the chief technical strategist at LPL Financial, “Rates are still in the driver’s seat,” highlighting the central role that interest rates play in the market’s dynamics. Although some technical signs of capitulation were observed, there is still a fight against an uptrend in longer-duration yields. Turnquist suggested that unless the yield on the 10-year Treasury retreats to around 4.35%, the market may face challenges and possibly a choppy ride in the upcoming weeks.

Weekly Performance and Earnings Season

While the week ended on a somber note, it’s worth noting that the S&P 500 and Dow Jones were still on track for modest weekly gains. In contrast, the Nasdaq had struggled, posting a slight decline for the week.

The start of the third-quarter earnings season did provide some optimism for investors. Major financial firms reported mostly positive earnings. JPMorgan Chase saw a gain of 2.4%, Wells Fargo rose by 2.6%, and Citigroup jumped nearly 1% after reporting favorable earnings. However, BlackRock’s shares edged 1.4% lower.

Market Outlook

The stock market’s performance on Friday, characterized by a drop in major indexes, was driven by a confluence of factors. A sudden spike in oil prices due to geopolitical tensions, coupled with rising inflation expectations and a decline in consumer sentiment, created a climate of uncertainty. Investors also monitored Treasury yields closely, which played a pivotal role in the market’s dynamics. As the market navigates these challenges, the performance of major financial firms and the overall trajectory of interest rates will continue to shape the investment landscape in the coming weeks.

Oct 13th Trending Stocks

Here is a summary of the trending stocks for October 13th, 2023:

1. JPM (JPMorgan Chase & Co.): Last Price $148.69, Change +2.88 (+1.98%), with a Market Cap of $432.111B.
2. UBER (Uber Technologies, Inc.): Last Price $43.19, Change -2.76 (-6.00%), Market Cap $88.27B.
3. SAVA (Cassava Sciences, Inc.): Last Price $15.00, Change -2.54 (-14.49%), Market Cap $629.491M.
4. ATVI (Activision Blizzard, Inc.): Last Price $94.42, No Change (0.00%), Market Cap $74.289B.
5. C (Citigroup Inc.): Last Price $41.62, Change +0.09 (+0.22%), Market Cap $80.147B.
6. WFC (Wells Fargo & Company): Last Price $40.84, Change +1.10 (+2.77%), Market Cap $149.425B.
7. GC=F (Gold): Last Price $1,943.50, Change +60.50 (+3.21%).
8. BAC (Bank of America Corporation): Last Price $26.76, Change -0.14 (-0.52%), Market Cap $212.645B.
9. DG (Dollar General Corporation): Last Price $111.49, Change +9.65 (+9.48%), Market Cap $24.468B.
10. CL=F (Crude Oil): Last Price $87.64, Change +4.73 (+5.70%).
11. EH (EHang Holdings Limited): Last Price $19.48, Change +2.38 (+13.89%), Market Cap $1.176B.
12. SASI (Sigma Additive Solutions, Inc.): Last Price $6.38, Change +3.90 (+157.16%), Market Cap $3.899M.
13. BPTH (Bio-Path Holdings, Inc.): Last Price $0.6887, Change +0.2946 (+74.75%), Market Cap $7.893M.
14. ^VIX (CBOE Volatility Index): Last Price $20.07, Change +3.38 (+20.25%).
15. GLD (SPDR Gold Shares): Last Price $178.96, Change +5.70 (+3.29%), Market Cap $46.583B.
16. PFE (Pfizer Inc.): Last Price $32.25, Change -0.67 (-2.04%), Market Cap $182.082B.
17. TTD (The Trade Desk, Inc.): Last Price $80.34, Change -4.15 (-4.91%), Market Cap $39.383B.
18. BNTX (BioNTech SE): Last Price $103.55, Change -5.35 (-4.91%), Market Cap $24.828B.
19. UNH (UnitedHealth Group Incorporated): Last Price $539.25, Change +13.71 (+2.61%), Market Cap $499.513B.
20. RVMD (Revolution Medicines, Inc.): Last Price $30.10, Change +5.90 (+24.40%), Market Cap $3.295B.
21. TANH (Tantech Holdings Ltd): Last Price $1.7200, Change +0.1500 (+9.55%).
22. MTCH (Match Group, Inc.): Last Price $35.36, Change -2.03 (-5.43%), Market Cap $9.833B.
23. PNC (The PNC Financial Services Group, Inc.): Last Price $117.62, Change -3.70 (-3.05%), Market Cap $46.843B.
24. BDC (Belden Inc.): Last Price $70.74, Change -24.53 (-25.75%), Market Cap $2.992B.
25. META (Meta Platforms, Inc.): Last Price $314.00, Change -10.16 (-3.13%), Market Cap $807.972B.
26. SGH (SMART Global Holdings, Inc.): Last Price $13.25, Change -10.33 (-43.81%), Market Cap $663.4M.
27. MBLY (Mobileye Global Inc.): Last Price $33.74, Change -2.60 (-7.14%), Market Cap $27.187B.
28. DASH (DoorDash, Inc.): Last Price $75.27, Change -4.83 (-6.03%), Market Cap $29.604B.
29. PGR (The Progressive Corporation): Last Price $153.98, Change +10.68 (+7.45%), Market Cap $90.094B.