Broker Check


THIS WEEK'S UPDATE

| October 12, 2021
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We were closed yesterday for the holiday, so you’re receiving this on Tuesday rather 

than our normally scheduled Monday mornings.
 

THE WEEK ON WALL STREET

The overhang of bumping against the federal debt ceiling was lifted last week with

an agreement to extend the debt ceiling through early December, helping propel

stocks to a weekly gain.  The Dow Jones Industrial Average increased by 1.22%,

while the Standard & Poor’s 500 added 0.79%. The Nasdaq Composite index gained

0.09%. The MSCI EAFE index, which tracks developed overseas stock markets, was

flat (+0.11%).
 

DEBT CEILING CONCERNS EVAPORATE, FOR NOW…

After suffering losses on concerns over delays with raising the federal debt ceiling,

stocks rebounded as the Senate moved toward finalizing a debt ceiling agreement.

While the agreement is only a short-term solution, it was enough to embolden

investors to buy stocks.  The week’s rally ran out of gas on Friday, however, on a

surprisingly weak employment report. Though the debt ceiling was the dominant

concern in the markets last week, the market grappled all week with the headwinds

of higher energy prices, rising bond yields, inflation, and less robust economic

growth.  
 

FUZZY EMPLOYMENT PICTURE

Employment remains a confusing and unpredictable element of this post-pandemic

economic recovery. Automated Data Processing’s employment report showed

private sector jobs rose by a robust 568,000. This hiring surge may have been aided

by the end of extended unemployment benefits and the return of children to school.

This improving labor outlook was reinforced the following day as weekly initial

jobless claims fell below their four-week moving average, while continuing claims

fell by nearly 100,000. The employment report on Friday was a different story. The

economy added a disappointing 194,000 jobs, making September the slowest

month for job growth this year. The unemployment rate declined to 4.8%, while an

increase in wages generated inflation worries.
 

THE WEEK AHEAD: KEY ECONOMIC DATA

Tuesday: JOLTS (Job Openings and Labor Turnover Survey).

Wednesday: Consumer Price Index. FOMC (Federal Open Market Committee)

Minutes.

Thursday: Jobless Claims.

Friday: Retail Sales. Consumer Sentiment.
 

THE WEEK AHEAD: NOTABLE COMPANIES REPORTING EARNINGS

Wednesday: JPMorgan Chase (JPM), Goldman Sachs (GS), Delta Airlines (DAL),

BlackRock, Inc. (BLK).

Thursday: Wells Fargo & Company (WFC), UnitedHealth Group (UNH), Citigroup,

Inc. (C), Walgreens Boots Alliance, Inc. (WBA), Morgan Stanley (MS).

Friday: J.B. Hunt Transportation, Inc. (JBHY), The PNC Financial Services Group, Inc.

(PNC).
 

FINAL THOUGHTS

Earnings season is upon us, which will set the tone for the remainder of the year.  At

least until December when the debt ceiling debacle will pop up again.  September

and October thus far have been their traditional seasonally weak selves as the

market has corrected a bit the past month and a half.  However, many think we

could see a bit of a rally into year-end if corporate earnings and guidance will

support it.  The Delta variant of Covid is rolling over in the south, but may not have

peaked yet in some northern states.  This could have a bit of an impact were it to get

really out of hand, but many of the northern states have more mitigation procedures

in place that will hopefully help keep cases to a minimum. 

Have a great week!

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