Monthly Market Recap October 2019
For the monthly market recap of October 2019, we saw the S&P 500 gain 2.2% for an all-time high. The majority of S&P 500 companies that reported beat analyst estimates.
Trade Talks
Trade tensions between the U.S. and China eased somewhat as China exempted certain U.S. agricultural products from additional tariffs. In addition, President Donald Trump delayed a scheduled 5% increase in tariffs from October 1 to October 15 so as not to coincide with the People’s Republic of China’s 70th anniversary celebration.
Fed Cut Rates
The Fed cut rates for a third time and it was widely expected. This doesn’t bold well for my high interest savings account, but it does indicate that further cuts are on hold as policymakers await economic data.
Stocks reacted negatively on news of the pause, but later rebounded after Fed Chair Jerome Powell stated in his post-meeting press conference that, “rate hikes were unlikely as long as inflation expectations remained subdued.”
Job Market
Stock futures jumped after the Labor Department reported that employers added 128,000 jobs in October. This was well above expectations! Hiring strength was widespread, with the exception of the manufacturing sector, which had been weighed down by the now-resolved strike at GM.
Boeing
Boeing reported its quarterly results and expressed optimism that the 737 MAX aircraft could return by as early as the end of the year.
However, regulators say Boeing has gaps in the documentation for the proposed 737 MAX software fix. This raises new questions over the plane-maker’s hopes to return the jet to U.S. service by year-end.
Conclusion
That concludes the monthly market recap for October 2019.
