To The Moon

The $S&P 500(.SPX)$ fell more than 3% and the $NASDAQ(.IXIC)$ dropped nearly 6%, failing to maintain their positive momentum from the previous two weeks. The $DJIA(.DJI)$ ’s relatively modest setback of roughly 1% snapped a four-week winning streak for that index.

As of last Friday, the$Straits Times Index(STI.SI)$ gained 0.89% weekly with a positive 0.27% YTD in 2022; and$S&P/ASX 200(XJO.AU)$‘s YTD performance is-7.22%, with a gaining 1.57% last week.

The focus of the US stock market this week will turn to the latest inflation indicators, A Consumer Price Index report scheduled to be released on Thursday will show whether inflation remained at an elevated level in October, despite six interest-rate increases so far this year from the U.S. FED.

In September, inflation slipped to an annual 8.2% rate from 8.3% the previous month, although core inflation excluding food and fuel prices rose to a higher-than-expected 6.6%. 

Sectors & Stocks Performances Review

A U.S. large-cap growth stock benchmark dropped nearly 6% for last week, lagging a value equity benchmark by a wide margin. Since the start of October, the growth style benchmark has added nearly 1% while its value counterpart has gained more than 9%.

On the corporate front, the U.S. earnings season continues to enter its final stages. 70% of S&P 500 companies that have reported actual third-quarter results so far have beaten EPS estimates, below the 5-year average of 77% and the 10-year average of 73%.

Weekly Top Gainers of S&P 500

$NIO Inc.(NIO)$ ,$SQQQ(SQQQ)$ ,$W&T Offshore(WTI)$ ,$Dada Nexus Limited(DADA)$ ,$Tellurian Inc.(TELL)$ ,$Futu Holdings Limited(FUTU)$ ,$XPeng Inc.(XPEV)$ ,$S&P Biotech Bear 3X Shares(LABD)$ ,$Grab Holdings(GRAB)$ ,$Tiger Brokers(TIGR)$

Macro Factors to Watch

Fed Stays the Course: As expected, the U.S. Federal Reserve lifted its benchmark interest rate by three-quarters of a percentage point, marking the fourth time in a row it’s approved such a steep increase. Looking ahead to its December meeting, the Fed issued a statement that allowed for flexibility to either approve another three-quarter-point increase or ease back to a half-point hike.

Lopsided Earnings:Without the energy sector’s surging growth, companies across the S&P 500 would be reporting a year-over-year decline in profits of around 5% this earnings season, according to FactSet. However, factoring in the 139% jump in energy earnings, third-quarter net income across the index was expected to rise around 2%, based on the 85% of companies that had reported results as of Friday and forecasts for firms that haven’t yet released results.

Jobs Aplenty: Despite the risks of a recession, U.S. jobs growth continued to exceed expectations. The government reported on Friday that the economy generated 261,000 new jobs in October, above forecasts for around 200,000. In addition, a separate monthly report issued on Tuesday showed that job openings rose to 10.7 million—also above expectations.

Yields Rise Again: Yields of U.S. government bonds rose, reversing course from the previous week’s decline, to mark the 13th week of rising yields out of the past 14. The yield of the 10-year U.S. Treasury climbed to around 4.16% on Friday, up from 4.02% at the end of the previous week.

Powell Fritengtend The Market, But Tigers Got One Chance To Benefit From Rates

Euro Inflation: The annual inflation rate in the eurozone climbed to 10.7% in October, up from 9.9% the previous month. Energy costs jumped 41.9% over the same period a year ago and remain a big concern across the 19 eurozone countries heading into winter.

The Week Ahead: November 7-11

CPI; U.S. Midterm Elections; NIO, Palantir, Disney, AMC Earnings: What to Know This Week

Notable Earnings to Watch：

$Palantir Technologies Inc.(PLTR)$ ,$BioNTech SE(BNTX)$ ,$Lyft, Inc.(LYFT)$ ,$Activision Blizzard(ATVI)$ ,$Take-Two(TTWO)$ ,$Walt Disney(DIS)$ ,$AMC Entertainment(AMC)$ ,$Novavax(NVAX)$ ,$Occidental(OXY)$ ,$NIO Inc.(NIO)$ ,$Unity Software Inc.(U)$ ,$Lucid Group Inc(LCID)$

Major Events This Week:

Monday

• Consumer credit, U.S. Federal Reserve

Tuesday

• U.S. midterm election

Wednesday

• Wholesale inventories, U.S. Census Bureau

Thursday

• Consumer Price Index, U.S. Bureau of Labor Statistics
• Weekly unemployment claims, U.S. Department of Labor
• Federal budget, U.S. Department of the Treasury

Friday

• U.S. Veterans Day Holiday, U.S. stock exchanges open, bond markets closed
• University of Michigan Index of Consumer Sentiment, preliminary result

Why did Dow Jones rally 6% LAST week?

What's you forcast for this week?

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