Investors shifted their focus to the beginning of the earnings season last week. US stocks started the week with a bang despite the stalled talks over fresh fiscal stimulus and rising covid-19 infections. Markets also turned their attention to the US Presidential elections scheduled for November 3.
The strong momentum didn’t last long though. And, Wall Street booked losses for three consecutive sessions, as global covid-19 cases continued to rise, especially in the European countries.
Big US banks reported quarterly earnings last week, with sharp rises in trading revenues due to stock market volatility. Jobless claims rose by 53,000 to 898,000 in the week ending October 10, versus 845,000 in the previous week.
Performance of US Indices
US stocks ended mostly higher on Friday, with gains driven by upbeat retail sales data and an improvement in consumer sentiment. Markets were also lifted by expectations of Pfizer’s experimental covid-19 vaccine candidate being submitted for approval by November.
The Dow Jones Industrial Average gained 112.11 points to close at 28,606.31on Friday. The blue chip index edged higher by 0.1% last week, following a 3.3% surge in the prior week. The S&P 500 index rose 0.47 points to 3,483.81 on Friday, closing the week higher by 0.2%. Although the Nasdaq Composite Index declined 0.5% on Friday, it recorded a 0.8% gain for the week.
Top US Stocks of the Week
Acorn International, Inc’s (NYSE: ATV) shares jumped more than 36% on Monday, after the company said it would be acquired for $21 per share.
Shares of JPMorgan Chase (NYSE: JPM) slipped around 2% on Tuesday despite the bank reporting upbeat Q3 results. JPMorgan’s closed the week flat.
Citigroup’s (NYSE: C) shares fell around 5% on Tuesday despite the bank posting stronger-than-expected Q3 results. Citigroup’s stock lost around 4% for the week.
Wells Fargo & Company’s (NYSE: WFC) shares slipped 6% on Wednesday after the company reported downbeat quarterly earnings. Wells Fargo’s stock tumbled around 10% last week.
Shares of Goldman Sachs Group (NYSE: GS) rose just 0.2% on Wednesday after the company reported upbeat quarterly results. The stock lost 0.6% for the week.
Morgan Stanley’s (NYSE: MS) shares added over 1% on Thursday after the company reported upbeat results for the latest quarter. Morgan Stanley’s stock gained over 6% last week.
Shares of Walgreens Boots Alliance (NASDAQ: WBA) gained around 5% on Thursday after the company reported results that exceeded estimates. The stock added 3% for the week.
Performance of European Indices
European stocks ended higher on Friday, driven by strong results from LVMH and Daimler. Investors remained concerned, however, around rising covid-19 cases in the region, with several countries in Europe re-imposing restrictions. London ordered a ban on household gatherings, while a night curfew was imposed in Paris and various other French cities. Brexit talks also came to an end in a stalemate.
The Stoxx Europe 600 Index added 1.3% on Friday, but closed the week lower by 0.8%. The FTSE 100 index rose 1.5% on Friday, but closed the week down by 1.6%. The French CAC 40 slipped 0.2%, while the German DAX 30 index tumbled 1.1% last week.
Top European Stocks of the Week
Airbus SE’s shares fell around 4% on Tuesday after JPMorgan downgraded the plane-maker’s stock from Neutral to Underweight.
Shares of Daimler gained more than 5% on Friday after the German firm reported strong preliminary earnings for the third quarter.
LVMH Moët Hennessey’s shares climbed more than 7% on Friday after the company posted upbeat growth for brands including Louis Vuitton and Dior.
Shares of Thyssenkrupp gained around 11% on Friday after the German company received an offer for its steel division.
The Forex Market
The euro initially tried to move higher versus the US dollar during the week, only to retreat towards the 1.17 mark. The market is expected to remain highly volatile with European countries announcing lockdowns again. Eurozone’s consumer prices declined the most since April 2016, at 0.3% in September. The EUR/USD shed around 1% last week.
The Canadian dollar declined to a one-week low versus the greenback last week with rising coronavirus cases expected to result in a slower economic rebound. Manufacturing sales in Canada declined 2% to C$52.4 billion in August, versus a revised 7.2% rise in July. The loonie lost around 0.5% versus the greenback last week.
The Crypto Market
Bitcoin surged past the $11,700 mark last week but was unable to continue the positive momentum. The king of cryptocurrencies traded down to around $11,475 over the weekend, while Ethereum traded close to the previous week’s level of $375.