Weekly Market Digest: October 28 - November 1

Market Summary

A relatively quiet week on Wall Street ended with the S&P 500 up 0.8%, the Nasdaq up 1.2%, and the Dow up 0.3%.

Market Performance

S&P 500: 5,425 (+0.8%)
Nasdaq-100: 18,920 (+1.2%)
Dow Jones: 42,180 (+0.3%)
Russell 2000: 2,085 (-0.5%)
VIX: 14.2 (lower volatility)

Earnings Highlights

Tech Giants Report

Major technology companies reported strong Q3 earnings, beating revenue expectations:

Strong cloud computing growth
AI investments showing early returns
Margin expansion despite higher R&D spending

Financial Sector

Banks reported solid net interest margins and loan growth, though credit quality remains under watch.

Economic Data

Jobless Claims: Down 15K to 205K, showing resilient labor market

ISM Manufacturing: 48.4 (below 50 indicates contraction, but stable month-over-month)

Conference Board Leading Economic Index: Slight decline suggesting economic moderation

Fed Speak

Fed Chair remarks reinforced the "data-dependent" approach:

Inflation progress acknowledged
Labor market remains strong
Potential for patience on rate decisions

Sector Rotation

The typical seasonal rotation into defensive sectors appears underway:

Healthcare: +2.1%
Utilities: +1.8%
Consumer Staples: +0.9%
Technology: +1.2%
Financials: +0.5%

Week Ahead

Key Dates

Nov 5: Fed speakers discuss economic outlook
Nov 6: ADP Employment Report
Nov 8: Jobs Report (Non-Farm Payrolls)
Nov 15: Retail Sales and CPI data

What We're Watching

The employment data next week will be crucial for the Fed's December decision. Strong jobs data might keep rates higher for longer.

Portfolio Tips

Review Your Allocation: With year-end approaching, ensure your portfolio reflects your risk tolerance
Tax Harvesting: Consider selling losing positions to offset gains
Dividend Reinvestment: November is a strong dividend month; ensure reinvestment settings are correct

Closing Thoughts

The market is finding equilibrium at higher valuations with moderate economic growth. Stay focused on fundamentals, maintain diversification, and avoid letting short-term noise disrupt your long-term plans.

See you next week!