Trump hinted last week that it would be better “to wait until after the election for the China deal” and that he had no deadline in mind.[1] Equities had a small selloff on Monday as a result but finished the week positive.
US broad market indices again set all time highs last week after a lackluster week prior. New home sales for Q3 beat expectations, confirming a pickup in housing. Consumer confidence fell for the 4th consecutive month, however confidence levels remain high.
There was little news and little action the past week, with all broad equity indices slightly down as markets came off record highs the week before. Q3 earnings season still sits at 67% of earnings beats for US companies.
As we approach the end of US earnings season, earnings beats have outnumbered misses 2 to 1.[1] Large and mid-cap stock indices were positive for the week although small caps and emerging markets were down.
After a strong start, Q3 earnings season continues to be mostly positive with ~68% of companies beating earnings estimates.[1] All broad market equity indices were positive last week with emerging markets leading the way; bonds were mostly down.
Last week, the Fed cut rates 25 basis points for the third time this year. These cuts were widely anticipated by market participants, who are now betting on another cut late next year.