Marketbites: Dow Posts Best Month Since 1976
Portfolio Manager Commentary:
The major indices all closed lower on Monday to finish off October. Despite the loss, all indices were able to snap two-month losing streaks. The Dow Jones index made a huge comeback in October posting a 13.95% increase to cap off its best month since 1976. The impressive gains come as investors gravitate towards more traditional companies, such as banks, to lead the next bull market. Meanwhile, the S&P 500 rose 8% and the Nasdaq gained 3.9%. Overall, energy stocks lead the sector leaders.
These October gains come during a mixed 3rd quarter earnings season. Large tech companies, like Meta and Amazon, have shown slowing growth and major disappointments. The tech-heavy Nasdaq index has been held back by these tech losses as investors navigate out of the growth sector.
Looking forward to this week, the Federal Reserve meeting begins today and ends tomorrow where the next interest rate decision will be made. It is widely expected that the Fed will announce another 75 basis-point rate hike. On Friday, October jobs data will be released and it will be closely watched by the Fed as a crucial piece of information for their next rate hike decision. Lastly, earnings season continues with reports from Pfizer, Uber, and Advanced Micro Devices (AMD).
Chart of the Day:
Rocket Mortgage is one of America's largest home lenders that harnessed a generation of low rates to refinance millions of mortgages. Now, rising rates have turned the mortgage industry from feast to famine quicker than expected. Refinancing had been the driver of Rocket's business and no longer makes sense for most homeowners. With mortgage rates above 7%, only 133,000 U.S. homeowners can save money by refinancing compared to a peak of 19 million in late 2020.