“You Retire Once… I Help People Retire Everyday”
Market Recap
WEEK OF SEP. 30 THROUGH OCT. 4, 2024
The S&P 500 index edged up 0.2% last week as a Friday climb on stronger-than-expected September jobs data helped outweigh an otherwise cautious start to October. The index ended Friday's session at 5,751.07, marking its fourth consecutive weekly gain.
To kick off the week, on Monday, the S&P 500 closed out September with a 2% increase for the month and a 5.5% gain for Q3. The index is now up nearly 21% for the year.
Hopes that Federal Reserve officials would cut rates in September helped fuel much of the S&P 500's gains in Q3. Now that the cut has been made, investors are looking to economic data and corporate results for signs of what Fed officials may do at their November meeting.
September's jobs data came in better than expected. Total nonfarm payrolls rose 254,000 last month, surpassing the consensus estimate for a 150,000 increase, according to a survey compiled by Bloomberg. The unemployment rate declined to 4.1% from August's 4.2%. Analysts had expected the rate to remain unchanged month-to-month.
Sectors were mixed as energy jumped 7%, followed by a 2.2% climb in communication services, a 1.1% rise in increase in utilities and a 1% increase in financials. Industrials and technology also edged higher.
The energy sector's jump came as crude oil futures also climbed.
Diamondback Energy (FANG) had the largest percentage jump in the sector, soaring 14% on the week, as analysts at Barclays and BMO Capital upgraded their investment ratings on the stock after the company updated its Q3 production and capital guidance to reflect the completion of its merger with Endeavor Energy Resources.
In communication services, Meta Platforms (META) shares rose 5% as a number of Wall Street analysts raised their price targets on the stock.
On the downside, materials had the largest percentage drop, shedding 2%, followed by a 1.9% decline in real estate. Other decliners included consumer staples, consumer discretionary and health care.
The decliners in materials included shares of Air Products & Chemicals (APD), which fell 5%. The company said it has completed the sale of its liquefied natural gas process technology and equipment business to Honeywell (HON) for $1.81 billion in cash.
US quarterly earnings are set to kick off this week as PepsiCo (PEP), JPMorgan Chase (JPM), Wells Fargo (WFC) and Progressive (PGR) will be among those releasing financial results.
Economic data will include the September consumer price index and the producer price index, both of which are closely watched measures of inflation.
