Market Update
Stocks closed lower in October as Wall Street couldn't maintain the momentum from September's strong showing after the Fed lowered interest rates. Equities began October on an upswing on the heels of a better-than-expected jobs report. In fact, during the first half of the month, the Dow and the S&P 500 reached record highs. However, investors began moving away from risk as the unrest in Middle East intensified and sentiment grew that the Fed may not cut rates in November.
Inflationary data showed price pressures edged higher but came within expectations. With about 37% of the S&P 500 companies reporting, third-quarter earnings results have been mixed. While the S&P 500 reported earnings growth for the fifth straight quarter, it was the lowest growth rate since the second quarter of 2023.
International Markets
China's stock market, which had been tumbling for several months, shot higher at the end of September on the heels of the most aggressive stimulus measures since the pandemic, which included interest rate cuts and fiscal support, in an attempt to rejuvenate China's sagging economy. Elsewhere, the annual inflation rate in Germany fell to 1.6% in September, the lowest rate since February 2021. Producer prices in Greece fell by 2.4% since August 2023, marking the sharpest deflation since February. Japan's industrial production fell more than expected in August as motor vehicle output slid 10.6%. For September, the STOXX Europe 600 Index dipped 0.4%; the United Kingdom's FTSE fell 1.1%; Japan's Nikkei 225 Index slipped 2.0%; while China's Shanghai Composite Index jumped 18.7%.
On a Personal Note
Jeff had knee replacement surgery and has been going through rehab. Early indications are good! October marked the end of the soccer season for Drew's youngest daughter, Ava. She had a great sophomore year, making all-league while leading it with nine shutouts and making over 100 saves. Chris finished up his daughter's fall soccer season with a trip to a tournament in Washington DC. The team played very well and they won! Now it is on to gymnastics season. Lisa had a busy September, so she laid low in October and is gearing up for the next two months and the holiday season. Sam took a golf trip with some of his best friends to Myrtle Beach. They played four rounds and had a blast catching up with each other. Taylor and Peter sold their home and are officially Loveland residents once again. They have a lot of projects to get done on the new house before the baby gets here, but they love a good challenge!
