Equities moved higher this week as the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all notched new record highs. Small caps equities lagged. Bond yields fell causing the Barclays Aggregate Bond Index to outpace the S&P 500 on the week. Rhetoric regarding the China-U.S. trade deal is not looking good.
We’ve approached the end of yet another earnings season. Currently, 92% of S&P 500 companies have reported earnings and sales for the third quarter. This season’s report shows financial results for U.S. companies are better than earlier expected. According to Refinitiv, of the companies reporting, earnings have contracted by 0.4%, which is 4.5% better than expected.
Equities moved higher this week as the S&P 500, Dow Jones Industrial Average and Nasdaq Composite all notched new record highs. The Dow Jones Transportation Average still has more than 5% to go to hit a high and offer solid confirmation that the near two-year consolidation in equity markets is ready for the next sizeable advance.