by Mariann Montagne, CFA
Stocks
The markets continued their recent weekly trend of oscillating, with the benchmark S&P 500 rising 0.47%, the Russell 2000 dropping 1.47% and the Nasdaq declining 0.18%. Overseas the international developed markets index (MSCI EAFE) rose 0.97% while the emerging markets index (MSCI EEM) added 1.52%. Within the US the best performing sectors were energy (not surprising given the war in Israel and Gaza) and utilities while consumer discretionary and materials were the laggards.1
Fixed Income
Bond values rose as interest rates declined across nearly all treasury maturities, retreating from 16-year highs reached the week earlier. The yield on the benchmark 10-year treasury dropped 15 basis points to 4.63%2 as the inflation index indicated that upward pressure from oil prices may turn downward, lessening the likelihood of future Federal Reserve rate hikes. See Economic Data below.
Commodities
The price of gold rose 5.27% last week to $1,941.90 per troy ounce3 as investors sought a safe haven in response to the attack on Israel and subsequent military actions.
Economic Data
Sales of motor vehicles rose to a 15.7 million unit seasonally adjusted annual rate in September after an upward revision to 15.3 million units in August. The annual pace of sales in September is above the consensus of 15.3 million units. For vehicles produced by American automakers, the annual rate was unchanged from August despite an auto workers strike in the latter half of September.4
The consumer price index rose 0.4% in September, a slight deceleration from the 0.6% rate reported in August. The index for shelter was the largest contributor, accounting for over one-half of the increase, followed by energy. Excluding volatile food and energy, the core consumer price index rose 0.3% last month, unchanged from August, which amounts to 3.6% on an annualized basis.5
Company News 6
BP plc, a G40i holding, rose 7.35% and ConocoPhillips (COP), a Core Select holding, rose 8.26% last week . Energy stocks were rising as oil prices rose amid worries of further escalation of the conflict in the Middle East.7
Novo Nordisk (NVO), a G40i holding, rose 10.88% for the week. Management announced sales and earnings growth for the third quarter and full year would exceed prior guidance based on higher full-year volume expectations for Ozempic given its success for diabetes management, weight loss and reducing the risk of kidney failure. Also, the company projects higher profitability for Ozempic and Wegovy (its weight loss drug).8
UnitedHealth Group Inc. (UNH), a Core Select, G33 and G50 holding, reported quarterly revenue and earnings that were ahead of expectations. Management also raised guidance for the full year.9 Shares rose 2.78% for the week. Shares of Cigna Group (CI), a Contrarian Choice, Core Select and G50 holding, rose 5.85% in response to the results from UnitedHealth Group.
Did you know…
There’s nearly the same amount of sugar in three tablespoons of Heinz ketchup as there is in a doughnut.
Mariann Montagne, CFA
Portfolio Management Consultant
Sources:
1 JP Morgan Weekly Market Recap 10-16-23
3 Apmex
5 Bureau of Labor Statistics 10-12-23
6 All weekly changes in company stock prices: Yahoo Finance
7 Barron’s, “Energy Stocks Gain as Oil Prices Rise” 10-13-23