For investors, October certainly provided some spooky returns. And the beginning of November isn’t exactly exorcising the ghosts and goblins. Stocks spent much of the week dropping like a stone. That set up one of the worst losing streaks in years. Uncertainty is back with a vengeance this last week as the sheer amount of data and earnings plus other events have continued to weigh on traders’ minds. (To see these trends in action, check out last week’s Market Wrap here.)
The deluge of economic data this week provided some clarity on the direction of the market. Measures of labor and consumer health came in lower than expected, as did a few other major data points. Meanwhile, those bullish pieces of information weren’t exactly super positive. The mixed view continued on the week’s returns.
As did the Fed. The central bank’s latest decision on interest rates was a thud. With the Fed leaving rates alone for another month, the bank painted the picture that the economy was OK, but not great.
At the same time, earnings continue to be a problem. While profits are great, the guidance and revenue figures continue to drop. That paints a good near-term picture, but a poor long-term one.
In the end, the pattern of lower returns continued this week.
