October's trading month was an active one. This month was filled with earnings and economic data. The banking sector provided a solid foundation as earnings came in strong. JP Morgan(JPM), gave the market a boost. With many unknowns globally and domestically with our US election, financial companies could be good short-term indicators. Tech stocks also added to the volatility this month. Tesla(TSLA) made a nice recovery after their numbers we out after traders saw the price fall of late. Microsoft(MSFT) weakened the market after it's data was released.
Looking forward, US data has still been fairly strong. The markets are unsure who will when the upcoming election so it appears many investors are potentially headed to the sideline for the next few weeks while we await results. Either outcome, the Fed still holds the key to the long-term success of the economy. Will inflation data continue to weaken? Where are rates headed? Will the bond market give us additional guidance?
Next month's market movement will be dictated by the election's results and what investors take-away from the winner's rhetoric.Â
Disclaimer: Past performance is not indicative of future returns. Opinions are my own. Profitable trades are not guaranteed.
On the date of publication, Peter Mooses did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
