Mid-Week Market Minute 10.19.22

Market Updates

Stocks Rally; Housing Starts Fell 8.1% in September

Stocks staged an impressive rally this week on the heels of better-than-expected corporate earnings. All sectors were firmly in positive territory as the S&P 500 index added nearly 4% mid-week. International stocks were higher as well with the MSCI EAFE index gaining more than 2%. Solid earnings from the financial sector helped bolster sentiment, with Goldman Sachs topping analyst forecasts on Tuesday. Meanwhile, shares of Netflix jumped 15% on Wednesday after reporting stronger than expected subscriber growth for the third quarter. Airline stocks were higher as well after United Airlines beat both top-and bottom-line expectations. Despite higher fares, management expects demand to remain strong throughout the remainder of this year.

On the data front, the National Association of Home Builders (NAHB) Housing Market Index showed homebuilder sentiment declined more than expected in October as higher mortgage rates continue to dampen demand. Housing starts fell 8.1% in September, showing declines in both single-family and multi-family units. Elsewhere, industrial production saw a 0.4% monthly gain in September, pointing toward a robust business environment. In the U.K., CPI inflation data came in above expectations as prices rose 10.1% on a year-over-year basis. Looking ahead to the rest of the week, investors will get a look at the Federal Reserve’s Beige Book, which contains the central bank’s report of the current state of economic conditions.

Source: GSAM, CNBC, JPMorgan

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