Weekly Excerpt November 1

Weekly summary for October 25 to 29

The equity market managed to close another week in positive territory setting new all-time highs. The S&P 500 is up 6.9% for the month, representing the largest gain since November 2020, led by the Consumer Discretionary +10.23%, Energy +6.66% and Technology +6.59% sectors. The nasdaq 100 closed the best month of the year with a return of 7.9%.

The week has been marked by the reporting of corporate results from over 25% of the companies that make up the S&P 500. For now 56% of the S&P 500 companies have reported Q3 2021 results, of which 82% have reported Earnings per share (EPS) above estimates. Additionally, companies are reporting earnings that are 10.3% above estimates, which is also above the five-year average of 8.4%.

Large companies

Two of the world's largest companies such as Amazon and Apple have reported results below analysts' expectations, arguing that the global supply chain crisis could have severe consequences over time and that a complicated holiday season is expected. The prices of these stocks have suffered falls in recent days.

The equity market in Europe has managed to close the month of October on a positive note by turning around September's negative performance. The STOXX 600 returned 4.6% for the month, the best return in the last seven months. The Auto (SXAP) and Insurance (SXIP) sectors led the way higher with returns of 2.56% and 2.16% respectively.