SPX Hit New Highs Again, Six-week Win Streak

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Main Content:

1.    Major indexes weekly performanc 

2.    U.S stocks weekly wrap 

3.    S&P 500 sector index weekly/month performance 

4.    China/Hong Kong stocks weekly wrap 

5.    Singapore stocks weekly wrap 

6.    Major indexes weekly chart and technical support & resistance levels

U.S.

For the week of Oct 18, all the three major indexes closed with gains this week, extending weekly win streak to six. SPX hit a new record finish Friday on fresh tailwinds from surging company results. The tech-heavy Nasdaq Composite(COMP) outpaced other indexes thanks partly to a double-digit rally in Netflix (NFLX) following its robust earnings. Average earnings per share (EPS) are exceeding Wall Street's expectations, up more than 6.7% for the 15% of S&P 500 companies reporting third quarter results so far. Refer to below major indexes performance table for the the week.

Key highlights for the week and next:

1.   Retail sales increased 0.4% last month, accelerating from the 0.1% uptick registered in August. The September reading was slightly above the consensus estimate for a 0.3% gain. 

2.    Initial jobless claims decreased fell unexpectedly to 241k during the week ended October 12, a decline of about 19k filings. 

3.    According to the CME FedWatch Tool, there is a 91% chance rates will fall 25 basis points at the FOMC meeting on November 6–7. There's a 9% chance of no change from current rates. 

SPX sectors in play

Nine out of the 11 SPX sectors closed with gains for the week, led by the utilities(XLU) and real estate(XLRE) sectors. Energy(XLE) stocks pulled back in sympathy with oil prices, which retreated as fears of possible Israeli attacks on Iran’s oil and gas infrastructure subsided. Strong quarterly results from Taiwan Semiconductor Manufacturing(TSM), appeared to reignite excitement for artificial intelligence (AI)-related stocks that are in the Nasdaq. Refer to below SPX sectors ETF weekly performance table.

Indexes technical levels

All the three major indexes closed up for the week, hit weekly win streak to six. Uptrend appears strong, the lagging Nasdaq index rebounded up to near its best level at 18671 hit three months ago.

Click below three indexes for their weekly charts.  

DJI weekly chart

SPX weekly chart

Nasdaq weekly chart

China/HK

China stocks rose as the central bank unveiled more support measures after data showed that deflationary pressures grew more entrenched in the economy. The Shanghai Composite Index(SSE) added 1.36%, while the blue chip CSI 300 gained 0.98%. In Hong Kong, the benchmark Hang Seng Index fell 2.11%. (Refer to the above weekly performance table).

Key highlights for the week and outlook for China/HK:

1.    China’s economy in the Q3 expanded 4.6% from year-ago levels, beating a consensus estimate. This growth rate was slightly lower than the 4.7% expansion recorded in the second quarter and below the government’s stated target of “around 5%.” On a quarter-over-quarter basis, the economy grew 0.9%. 

2.    Other economic data showed signs of improvement. Industrial production rose a better-than-expected 5.4% in September from a year earlier, up from August’s 4.5% increase. Retail sales grew an above-forecast 3.2% year over year, an acceleration from the 2.1% increase logged in August. Higher sales of household appliances were a contributing factor. 

3.   Inflation. Annual inflation came in at a below-consensus 0.4% in September, the lowest level in three months and a slowdown from the 0.6% rate recorded in August. Core inflation, which strips out volatile food and energy costs, increased 0.1%, the lowest since February 2021, according to Bloomberg. The producer price index fell a bigger-than-expected 2.8% from a year ago, deepening from August’s 1.8% drop.

Click below SSE and .HSI indexes for their weekly charts. 

SSE weekly chart

.HSI weekly chart

Singapore

STI index (STI) closed at 3640.19, added 1.86% for the week. The index cycled up to its five-week sideway consolidation top line, closed near its best level 3652. The three local banks and SingTel led the gains this week. Overall uptrend is strong. Refer to below index stocks weekly performance.

Click below for STI weekly chart.

STI weekly chart

Source: Some contents and data excerpted from various public market reports.