Stocks got off to a decent start last week, after news that Canada would be joining Mexico and the U.S. in a trade deal known as the United States-Mexico-Canada Agreement (USMCA).
After a win on Monday, the DOW made back-to-back record highs on Tuesday and Wednesday.
It looked like the S&P was about to make a run at new records as well. But with a surge in interest rates, stocks dropped on Thursday and Friday, and the major indices finished the week with losses.
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Here’s what traders were focused on during the week:
- Yields Surge – Bond yields rocketed higher throughout the week, hitting highs not seen since 2011. On Friday, the 10-year yield had its biggest single-day rally since March 1st.
- Labor Market Strong – On Wednesday, ADP Non-Farm Employment numbers showed a 230,000 increase compared to the 185,000 increase expected. Then on Friday, the September Jobs Report showed Average Hourly Earnings in-line with expectations with a 0.3% gain. Non-Farm jobs were worse than expected with just an increase of 134,000 jobs (vs. the 184,00 expected). But the Unemployment Rate came in 2 ticks better than expected at 3.7%, which is the lowest unemployment rate we’ve seen since 1969.
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Here’s where the major indices ended the week:
- The S&P finished 1.0% lower. Down 28 points, the S&P ended at 2,886.
- The DOW ended flat. Dropping just 11 points, the DOW closed at 26,447.
- The NASDAQ was down 3.2%. With a 258 point drop, the NASDAQ finished at 7,788.
- Bitcoin finished 1.4% lower. Down $95, Bitcoin ended at $6,520.
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Crude Oil (CL) finished higher for the 4th week in a row. With a 1.5% gain, Crude Oil finished at $74.29 a barrel.
Tesla (TSLA) was up an impressive 17.4% on Monday, rallying after Elon Musk and Tesla settled with the SEC. Elon Musk and Tesla were fined 20 million each, and Musk was removed from the company’s board of directors over securities fraud allegations tied to Musk’s “going private” tweet. But the enthusiasm over the settlement was short lived.
Tesla suffered 4 straight days of losses, with the sell-off escalating after Musk was critical of the SEC in a tweet. By Friday, Tesla had erased all of Monday’s gains and finished the week with a 1.1% loss.
In earnings news, Costco (COST) dropped in spite of better than expected earnings. Costco lost 5.6% on Friday and finished the week with a 6.8% loss.
Source: RockwellTrading by Markus Heitkoetter | Original Link