Week in Review: IWM Gains 1.96% While SPY and QQQ Slip
For the week ended Oct. 23, IWM rose 1.96% and DIA 0.44% while SPY fell 0.43% and QQQ 0.76%; MSFT, GOOG, AMZN and LLY report next, with a Fed decision.
Small-cap stocks outperformed in the week of Oct. 19 through Oct. 23, while SPY and QQQ edged lower and the Dow fund DIA rose. The small-cap IWM rose 1.96% for the week, to 275.75 from 270.44 at the Oct. 16 close. SPY declined 0.43% to 759.97 from 763.25, and QQQ fell 0.76% to 704.40 from 709.80. DIA, which tracks the Dow Jones Industrial Average, rose 0.44% to 521.37 from 519.10.
In price terms, IWM gained 5.31 and DIA 2.27, while SPY lost 3.28 and QQQ gave up 5.40. Treasury yields fell over the period: FRED's 10-year yield dropped 13 basis points, from 5.09% on Friday, Oct. 16, to 4.96% on Thursday, Oct. 22, the latest reading in the data used for this note, which had no Oct. 23 reading.
A WSJ headline said the earnings boom is heavily reliant on just a handful of stocks. Investor's Business Daily published a market primer for what it called a preelection week, and MarketWatch reported that AI fever has ignited a boom in thematic ETFs.
The coming week's earnings calendar includes several of the largest U.S. companies by market value, according to FMP. MSFT, with a consensus EPS estimate of $4.71, and GOOG, at $3.03, are scheduled for Oct. 28. AMZN, at $1.96, and LLY, at $5.70, are scheduled for Oct. 29, along with MA, INTC, MRK and CAT. V and KO are due Oct. 27, and XOM, ABBV and CVX are scheduled for Oct. 30.
The Federal Reserve's interest rate decision is scheduled for Oct. 28, with the consensus calling for a rate of 4.00%, unchanged from the prior level. Third-quarter GDP and September PCE inflation data follow on Oct. 29.
Data
| Instrument | Oct. 16 close | Oct. 23 close | Weekly change |
|---|---|---|---|
| SPY | 763.25 | 759.97 | -0.43% |
| QQQ | 709.80 | 704.40 | -0.76% |
| IWM | 270.44 | 275.75 | +1.96% |
| DIA | 519.10 | 521.37 | +0.44% |
| 10-Year Treasury (Oct. 16 to Oct. 22) | 5.09% | 4.96% | -13 bp |
Data: FMP, FRED. Figures are close-to-close unless stated.
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Neutral market summary for information only; not investment advice.
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