48%
Halliburton (HAL): The oil-field servicing company reported better-than-expected earnings and revenue as energy production increased.
Big Movers in October 2022
50%
DexCom (DXCM): The diabetes company’s quarterly results beat consensus estimates. The government also widened its potential market for glucose monitoring.,
49%
Norwegian Cruise Line (NCLH): Bookings improved for the cruise-ship operator as travel demand rebounds following the coronavirus pandemic.
35%
Generac (GNRC): The maker of power supplies warned that revenue would miss targets as demand for generators softened.
31%
Meta Platforms (META): The parent of Facebook missed profit forecasts and issued weak guidance as rising costs erode profit margins.
14%
Tesla (TSLA): The electric-vehicle maker reported lower-than-expected quarterly deliveries and revenue. Supply-chain issues and currencies also squeezed its results.
Key Economic Events Last Month
 | Job growth, unemployment beat estimates | Non-farm payrolls increased by 263,000 in September, slightly beating forecasts. Unemployment also fell more than expected as leisure and hospitality hiring continued. (7/10) |
|---|---|---|
 | Housing at a crossroads? | The Consumer Price Index (CPI) rose 0.4% between August and September, twice the anticipated rate. Food, shelter and medical care drove the increase, even as energy costs eased. (13/10) |
| Homebuilder sentiment cut in half | NAHB’s index of homebuilder sentiment plunged to 38 in October, less than half its reading earlier in the year. Buyer traffic and sales outlooks have slowed sharply as mortgage rates increase. (18/10) |
| Inflation Hits Consumer Confidence | Consumer confidence dropped more than expected as Americans worried about inflation before the holidays. There was also a sense of job availability diminishing. (25/10) |
Key Futures Contracts
| Product Name | Current Month | Expiration | Next Month | 1-Mon% |
|---|---|---|---|---|
| S&P 500 E-Mini (@ES) | ESZ22(Dec) | 16 Dec 22 | ESH23(Jan) | +11% |
| *S&P 500 E-Mini Micro (@MES) | MESZ22 (Dec) | 16 Dec 22 | MESH23 (Jan) | +11% |
| Nasdaq-100 E-Mini (@NQ) | NQZ22 (Dec) | 16 Dec 22 | NQH23 (Jan) | +3.9% |
| *Nasdaq-100 E-Mini Micro (@MNQ) | MNQZ22 (Dec) | 16 Dec 22 | MNQH23 (Jan) | +3.9% |
| Dow Jones E-Mini (@YM) | YMZ22 (Dec) | 16 Dec 22 | YMH23 (Jan) | +14% |
| *Dow Jones E-Mini Micro (@MYM) | MYMZ22 (Dec) | 16 Dec 22 | MYMH23 (Jan) | +14% |
* Micro contracts are one-tenth the size of standard e-minis.
Events to Watch This Month
| Date | Event | What to watch |
|---|---|---|
| Wed, 2-Nov | Federal Reserve meeting and press conference | Will the strong labor market cool, potentially giving the Fed reason to slow rate hikes?Will Jerome Powell hint at slower interest-rate hikes at the 14-Dec meeting? |
| Fri, 4-Nov | Non-farm payrolls | Will the jobs market weaken, potentially giving the Fed a reason to ease monetary policy? |
| Tue, 8-Nov | U.S. midterm elections | Will Republicans gain seats in Congress and state governments against incumbent Democrats? |
| Thu, 10-Nov | Inflation report | October’s Consumer Price Index (CPI) is due one hour before U.S. markets open. |
| Mon, 14-Nov | Last big week of earnings | Walmart (WMT), Nvidia (NVDA), Cisco Systems (CSCO) and Home Depot (HD) report in the last big week of earnings season. |
Sector Watch
Energy25%- Industrials14%
- Financials12%
- Health Care10%
- Consumer Staples9%
- Materials9%
- S&P 5008%
- Technology8%
- Real Estate2%
- Utilities2%
- Consumer Discretionary1%
- Communications1%
Energy
Industrials
Financials
Health Care
Consumer Staples
Materials
S&P 500
Technology
Real Estate
Utilities
Consumer Discretionary
CommunicationsHealth Care stocks fell the least as investors favored their safe-haven status. Biotechs were strong.
Real estate stocks fell the most as higher interest rates reduced the appeal of income investments.
Technology stocks fell again as economic concerns hurt semiconductors and higher interest rates weighed on software makers.
Communications stocks fell amid selling in telecom and media companies.
Noteworthy Calls & Predictions
06-October
Citi predicts global equities will gain 18% through the end of 2023 because investors are likely to see bargains after multiples contracted this year.
Stocks
10-October
Famed investor Paul Tudor Jones said short-term Treasury yields could give clues on the stock market’s direction. He added that signs of a recession could lower borrowing costs, potentially anticipating easier monetary policy by the Fed.
Stocks
19-October
Deutsche Bank sees “very bearish positioning” in the semiconductor industry. The bank cited weaker demand from PC makers and data centers. It expects softness in the group until macroeconomic conditions improve.
Semiconductors
24-October
CNBC reported that inflation worries have dominated quarterly reports this earnings season. Companies including PepsiCo (PEP) and Citi (C) noted cost pressures impacting results. The report cited an analysis by FactSet.
Earning
26-October
Morgan Stanley strategist Mike Wilson said the bear market could end next year. Wilson, prominent for anticipating 2022’s decline, noted the S&P 500’s ability to hold its low from June.
Stocks
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