The 1% Market Move: 11/1/2018

The Bottom Line
  • S&P 500 up +1.06%
  • Stoxx Europe 600 up +0.41%
  • Shanghai Composite Index up +0.13%
So What Happened?

The U.S. stock market kept us on the edge of our seat today, as it just managed to sleepwalk over our +1% reporting threshold. The S&P 500 has now closed in the green for three straight days, while at the same time notching its best such percentage increase in two years (per Bloomberg).

The big news today was a surprise announcement (i.e. tweet) from the President that he and China’s leader, Xi Jinping, had a “long and very good” conversation about trade. While the stock market welcomed this news, only time will tell the final outcome as both sides have repeatedly see-sawed on this issue over the past several months.

Third quarter earnings continue to be a storyline as well. The headliners today included DowDuPont, health insurer Cigna, and computer chip-maker NXP Semiconductors. All three companies posted quarterly earnings surpassing Wall Street’s expectations. Two notable reports on the horizon are Apple (after the closing bell today) and Warren Buffett’s Berkshire Hathaway (Saturday). As we near the end of earnings season, Wall Street will likely refocus its attention on the Federal Reserve’s last two meetings of the year as investors wait to hear guidance on the future of interest rates.

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The S&P 500 is a market capitalization weighted index of 500 leading U.S. companies and one of the most common benchmarks for the broader U.S. equity markets.

The NASDAQ Composite Index measures all NASDAQ domestic and international based common type stocks listed on The Nasdaq Stock Market. Launched in 1971, the NASDAQ Composite Index is a broad based Index. Today, the Index includes over 3,000 securities, more than most other stock market indices. The NASDAQ Composite is calculated under a market capitalization weighted methodology index. To be eligible for inclusion in the Composite the security’s U.S. listing must be exclusively on the Nasdaq Stock Market (unless the security was dually listed on another U.S. market prior to January 1, 2004 and has continuously maintained such listing), and have a security type of either: American Depositary Receipts (ADRs); Common Stock; Limited Partnership Interests; Ordinary Shares; Real Estate Investment Trusts (REITs); Shares of Beneficial Interest (SBIs);
Tracking Stocks
Security types not included in the Index are closed-end funds, convertible debentures, exchange traded funds, preferred stocks, rights, warrants, units and other derivative securities.

If at any time a component security no longer meets the above eligibility criteria, the security is removed from the Composite Index.

The Stoxx Europe 600 is a subset of the STOXX Global 1800 Index. With a fixed number of 600 components, the STOXX Europe 600 Index represents large, mid and small capitalization companies across 17 countries of the European region: Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.

The Shanghai Composite Index is a market capitalization weighted index made up of all the A-share and B-shares that trade on the Shanghai Stock Exchange.

Past performance is not an indication or guarantee of future results. Investing in securities involves risks, including the potential loss of all amounts invested.

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