Investors this week turned their attention to earnings from politics.
Netflix, Microsoft and Amazon trumped analysts’ earnings estimates in the third quarter, buoying technology stocks. Of the 244 members of the S&P 500 Index that have released results so far, 76 percent beat analysts’ profit estimates and 54 percent exceeded revenue expectations, according to Bloomberg data.
Meanwhile, the euro zone is sending signals of a recovery, with the U.K.’s economy growing at the quickest pace in three years in the third quarter and a beleaguered Spain slowly improving. Investors have taken notice. In the week ended Oct. 23, they placed $5 billion into European stock funds, the largest weekly inflow ever.
The Affordable Care Act was still front and center in the news in the U.S., though acrimonious politics failed to drag down stocks this week. The S&P 500 climbed to a record, bringing the 2013 gain to 23 percent and October’s tally at 4.4 percent.
What follows in our weekly wrap-up with links to columns written by Money and Markets’ newsletters’ editors.
Larry Edelson began the week citing seven reasons why he thinks gold prices are poised to increase again.
Following developments in Washington, Douglas Davenport described what the game rules for investors look like today. And this chart essentially proves that the current monetary policy leads to slower economic growth.
On Wednesday, Bill Hall warned those who are encouraged by the Fed’s policy, saying stocks are overvalued at the moment.
Mike Burnick shared which sectors he’s watching and which stocks may enrich investors. On our Money and Markets Facebook page, he named the two stocks that are poised to outperform the broader market.
Also on the Fed, JR Crooks analyzed the current market situation and gave his thoughts on where stocks might end up as they hit a tipping point.
Closing the week, Mike Larson listed the reasons why investors should stay away from major banks.
Best regards,
The Money and Markets Team
