S&P 500 Posts First Weekly Drop Since Early September as Materials, Health Care Weigh

The Standard & Poor's 500 index slipped 1% for its first weekly decline since early September as investors dissected companies' quarterly results.

The market benchmark ended the week at 5,808.12, its first decline on a weekly basis since the seven days that ended Sept. 6. It's still up 0.8% this month and 22% in 2024.

Several companies have surpassed analysts' mean estimates for earnings this reporting season. Megacaps including Coca-Cola (KO) and Tesla (TSLA) released better-than-expected earnings reports this week, while Union Pacific (UNP) missed on both earnings and revenue.

By sector, materials and health care had the largest percentage declines this week, falling 4% and 3%, respectively. Industrials shed 2.8% and financials lost 2.1%. Utilities, real estate and consumer staples were also in the red.

In materials, shares of Newmont (NEM) fell 16% on the week as the mining company's Q3 earnings per share as well as sales came in slightly below analysts' mean estimates.

In health care, HCA Healthcare's (HCA) Q3 results missed Wall Street estimates as Hurricane Helene negatively impacted some of its facilities. The hospital operator also warned it expects another hurricane-related hit in the ongoing three-month period. Shares declined 13%.

Carrier Global (CARR) shares had the largest percentage drop among industrials this week, losing 9.6% as the company's Q3 results missed analysts' expectations and it cut guidance for 2024.

Still, two sectors managed to eke out weekly gains: consumer discretionary rose 0.9% and technology edged up 0.2%.

Tesla shares gave a big boost to the consumer discretionary sector, climbing 22% as the electric vehicle maker's Q3 earnings unexpectedly increased year over year and topped analysts' mean estimate despite weaker-than-expected revenue. Tesla also said it expects "slight growth" in vehicle deliveries this year, marking an improvement from its prior view for vehicle volume to possibly be "notably lower" annually.

In the technology sector, shares of Lam Research (LRCX) rose 6.6% as the company's fiscal Q1 adjusted earnings per share and revenue came in above year-earlier results as well as Street views.

Next week's earnings calendar features Google parent Alphabet (GOOG, GOOGL), Visa (V), Advanced Micro Devices (AMD), McDonald's (MCD), Pfizer (PFE), Microsoft (MSFT), Facebook parent Meta Platforms (META), Eli Lilly (LLY), AbbVie (ABBV), Caterpillar (CAT), Apple (AAPL), Amazon.com (AMZN), Mastercard (MA), Merck (MRK), Berkshire Hathaway (BRK.A, BRK.B), Exxon Mobil (XOM) and Chevron (CVX).

In economic data, all eyes will be on October employment data, with ADP's private-sector report expected on Wednesday and the Labor Department's monthly nonfarm payrolls and unemployment rate due on Friday. Other highlights will include the release of Q3 gross domestic product on Tuesday and October personal consumption expenditures on Thursday.