Forefront’s Market Notes:
October 21st, 2024
Stocks posted modest gains last week, with quarterly earnings season in full swing and the election on the horizon.
The Standard & Poor’s 500 Index increased 0.85 percent, while the Nasdaq Composite Index rose 0.80 percent. The Dow Jones Industrial Average advanced 0.96 percent. The MSCI EAFE Index, which tracks developed overseas stock markets, fell 0.31 percent.1,2
Six in a Row
Stocks bolted out of the gate as the week began. The S&P 500 and the Dow Industrials hit record highs, with the Dow crossing 43,000 for the first time.3
Midweek, news of stronger-than-expected retail sales report contributed to overall market momentum. Retail sales rose a seasonally adjusted 0.4 percent in September, topping economists forecasts.4
As the week wrapped up, the technology sector helped fuel a rally that pushed the S&P and Nasdaq to another record high. It was the sixth straight week of gains for the S&P 500, Nasdaq, and Dow Industrials.5
Source: YCharts.com, October 19, 2024. Weekly performance is measured from Monday, October 14, to Friday, October 18. TR = total return for the index, which includes any dividends as well as any other cash distributions during the period. Treasury note yield is expressed in basis points.
Insight from Corporate Reports
There were many market forces pushing each other around last week.
Corporate earnings reports drove much of the market action. Some of the most extensive financial stocks surprised on the upside, supporting a narrative that the economy remains strong.
At the same time, a corporate report from one of the world’s largest chip manufacturing contractors revealed continued strong global demand for AI microchips. However, increasing investor anxiety was a constant undertow in trading as the November elections drew nearer.6
Tax Incentives Can Help You Further Your Education
Tax credits help with the cost of higher education by managing the income tax you may need to pay. The two tax credits available are the American Opportunity Tax Credit and the Lifetime Learning Credit.
Some education savings plans offer tax benefits if the individual qualifies. Also, you may be able to deduct higher education costs – such as tuition, student loan interest, and qualified education expenses – from your tax return.
Knowing your potential tax benefits may save you money if you’ve always dreamed about returning to school, whether to further your career or just learn something new.
*This information is not intended to be a substitute for specific, individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax professional.
Tip adapted from IRS7
Footnotes and Sources
1. The Wall Street Journal, October 18, 2024
2. Investing.com, October 18, 2024
3. CNBC.com, October 15, 2024
4. The Wall Street Journal, October 17, 2024
5. The Wall Street Journal, October 18, 2024
6. The Wall Street Journal, October 18, 2024
7. IRS.gov, July 3, 2024
Stock market calendar this week:
| Time (ET) | Report |
| MONDAY, OCT 21 | |
| 8:55 AM | Dallas Fed President Lorie Logan speaks |
| 10:00 AM | U.S. leading economic indicators |
| 5:05 PM | Kansas City Fed President Jeff Schmid speaks |
| 6:40 PM | San Francisco Fed President Mary Daly speaks |
| TUESDAY, OCT. 22 | |
| 10:00 AM | Philadelphia Fed President Patrick Harker speaks |
| WEDNESDAY, OCT. 23 | |
| 9:00 AM | Fed Governor Michelle Bowman speaks |
| 10:00 AM | Existing home sales |
| 2:00 PM | Fed Beige Book |
| THURSDAY, OCT. 24 | |
| 8:30 AM | Initial jobless claims |
| 8:45 AM | Cleveland Fed President Beth Hammack opening remarks |
| 9:45 AM | S&P flash U.S. services PMI |
| 9:45 AM | S&P flash U.S. manufacturing PMI |
| 10:00 AM | New home sales |
| FRIDAY, OCT. 25 | |
| 8:30 AM | Durable-goods orders |
| 8:30 AM | Durable-goods minus transportation |
| 10:00 AM | Consumer sentiment (final) |
Most anticipated earnings for this week:
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About Amit: I am a first generation American, the son of a working-class Indian family, and I lived through my parents’ struggle to find their place in this country, to put down roots that would sustain them as well as their children in a new land. As they encouraged me to excel in school and fostered my hobbies and interests, I was keenly aware of the dynamic between them. I understood that there was a difference between where they came from individually and where we were now. They worked hard in their individual capacities, but they weren’t always on the same page about financial issues – and that can make or break a family’s future. I didn’t know it at the time, but this laid the groundwork for my passion towards financial services and helping families succeed.