Weekly Recap: SPY Gains 1.16% While Small-Cap IWM Slips 0.92%
SPY rose 1.16% in the week ended Oct. 9, DIA 0.98% and QQQ 0.23%, while small-cap IWM fell 0.92%; the 10-year yield ended 4 bp lower at 5.24%.
Large-cap U.S. stocks finished the week of Oct. 5 to Oct. 9 higher, while small caps lagged. SPY rose 1.16% for the week, closing Friday, Oct. 9, at 778.57 compared with 769.64 on Oct. 2, a gain of 8.93 points.
DIA, which tracks the Dow Jones Industrial Average, rose 0.98% to 516.11 from 511.10, a gain of 5.01 points. QQQ posted a smaller advance, edging up 0.23% to 751.27 from 749.58, a rise of 1.69 points. The small-cap IWM moved the other way, falling 0.92% to 278.94 from 281.52, a weekly decline of 2.58 points. The gap between SPY's gain and IWM's loss was 2.08 percentage points.
Treasury yields eased over the week. The 10-year yield moved from 5.28% on Oct. 2 to 5.24% on Oct. 9, a decline of 4 basis points, based on FRED observations over the same window as the funds. The VIX ended the week at 14.84, and the high-yield option-adjusted spread stood at 3.11% as of Oct. 9.
Weekend coverage looked toward corporate results. Bloomberg Markets and Finance ran a segment titled “Strong Earnings Could Revive US Stocks,” and Investor's Business Daily published “Stock Market Week Ahead: Gathering Election, Earnings Momentum.” Seeking Alpha posted “S&P 500 Forward Earnings Yield (5.3%) Vs. 10-Year Treasury Real Yield (3%): Which One Wins?”
The next week's calendar includes scheduled reports from JPM, GS, WFC and C on Oct. 13, and the September consumer price index on Oct. 14, where the consensus estimate for the year-over-year inflation rate is 3.6%, compared with 3.4% previously.
Data
| Instrument | Oct. 2 close | Oct. 9 close | Weekly change |
|---|---|---|---|
| SPY | 769.64 | 778.57 | +1.16% |
| QQQ | 749.58 | 751.27 | +0.23% |
| IWM | 281.52 | 278.94 | -0.92% |
| DIA | 511.10 | 516.11 | +0.98% |
Data: FMP, FRED. Figures are close-to-close unless stated.
In the news
- Bloomberg Markets and Finance: Strong Earnings Could Revive US Stocks
- Investors Business Daily: Stock Market Week Ahead: Gathering Election, Earnings Momentum
- Seeking Alpha: S&P 500 Forward Earnings Yield (5.3%) Vs. 10-Year Treasury Real Yield (3%): Which One Wins?
Neutral market summary for information only; not investment advice.
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