Market Overview
The S&P 500 Index ($SPX, SPY) increased by +0.42% today. The Dow Jones Industrials Index ($DOWI, DIA) rose by +0.12%, while the Nasdaq 100 Index ($IUXX, QQQ) climbed by +0.41%. Additionally, December E-mini S&P futures (ESZ25) rose by +0.39%, and December E-mini Nasdaq futures (NQZ25) increased by +0.48%.
Economic Signals and Stock Performance
U.S. stock indexes bounced back from initial dips, fueled by positive indicators of economic stability. The latest ADP employment report revealed that private-sector job additions surpassed expectations, and activity in the service sector grew at its highest rate in eight months.
Market Reactions
After starting the day lower, the S&P 500 and Nasdaq 100 reached 1.5-week lows. The ongoing correction in AI-infrastructure stocks continued, with Super Micro Computer plunging over -8% after reporting disappointing Q1 sales.
Treasury Notes and Economic Outlook
The U.S. Treasury announced sales of $125 billion in T-notes and T-bonds for next week’s quarterly refunding, which met expectations. They indicated no plans to increase note and bond sales until further into next year, instead relying more on short-term T-bills to manage budget deficits.
Housing and Employment Data
In mortgage news, applications dropped -1.9% for the week ending October 31, with declines in both purchase and refinancing indices. The average fixed mortgage rate rose slightly to 6.31% from 6.30%. The ADP employment change in October saw an increase of +42,000, exceeding forecasts of +30,000.
Global Market Response
International stock markets presented mixed results. The Euro Stoxx 50 gained +0.30%, while China’s Shanghai Composite rebounded from recent lows with a +0.23% increase. Conversely, Japan’s Nikkei Index fell -2.50% to its 1.5-week low.
Corporate Earnings and Market Sentiment
As Q3 earnings season continues, 136 S&P 500 companies are expected to report this week. Early indications show that 80% of those reported have exceeded forecasts, gearing up for the best quarter since 2021. Meanwhile, the ongoing U.S. government shutdown, now in its sixth week, is creating additional anxiety in the markets and might negatively affect the economy.
