Weekly Market Recap – October 28, 2022
The average 30-year mortgage rate soared beyond 7%, its highest level since 2002. Britain’s Conservative Party selected Rishi Sunak as the next prime minister; he will be the youngest to serve as PM in two centuries. Elon Musk completed his $55 Billion deal to acquire Twitter; after taking control, he fired several top executives.
Monthly economic statistics reported during the week compared with prior levels were: S&P Case-Shiller national home price index -9.8% vs. -5.3%, new home sales 603,000 vs. 677,000, pending home sales index -10.2% vs. -1.9%, durable goods orders +0.4% vs. +0.2%, PCE price index +0.3% (unchanged), real disposable income +0.6% vs. +2.3%, real consumer spending +3.8% vs. +3.6%, consumer confidence index 102.5 vs. 107.8. Weekly reports from the labor department showed that initial jobless claims rose to 217,000 from 214,000, while continuing unemployment claims were 1.44 million vs. 1.38 million. The most encouraging statistic of the week was Thursday’s report that the quarterly gross domestic product jumped 2.6% on an annualized basis for Q3, indicating that U.S. economic activity is bouncing back. The previous GDP numbers were a 0.6% decline in Q2 and a 1.6% drop in Q1.
Stocks kept advancing. The three indices we track rallied, as investor confidence flowed back into the market. The DJIA ended the week at 32,861.80 (+5.7%), the S&P 500 finished at 3,901.06 (+4.0%), and the NASDAQ Composite closed at 11,102.45 (+2.2%). CBOE’s VIX continued its retreat, dropping 13.3%, marking 25.75 at settlement. In currencies, the USD Index futures eased 1.2% ending at 110.606 on Friday. Commodities in the S&P GSCI futures portfolio stabilized a bit, lifting the index up 1.8% to 636.53 at the week’s end.
Metals futures on our radar had mixed performances. Settlement prices and weekly percentage movements were: gold at $1,644.80 (-0.7%), silver at $19.147 (+0.4%), platinum at $949.10 (+1.6%), palladium at $1,897.20 (-5.4%), copper at $3.4290 (-1.3%) and aluminum at $2,211.50 (+0.2%).
In energy markets, all but one of the futures we report here advanced. Closing prices and their respective movements were as follows: WTI crude at $87.90 per barrel (+3.4%), Brent crude at $95.77 (+2.4%), heating oil at $3.7455 per gallon (+5.4%), RBOB gasoline at $2.5629 (+3.6%), NYMEX natural gas at $5.684 per MMBtu (+3.9%), and ICE TTF Dutch gas at €139.311 per MWh (-3.6%).
As for the nine agricultural commodities we cover, it was a good week for the bears, with eight of the nine contracts losing ground. The sole gainer was live cattle, inching up to 153.000 (+0.4%). Those that slid into the red were: soybeans at $13.87¾ (-0.6%), corn at $6.80¾ (-0.5%), wheat at $8.29¼ (-2.5%), coffee at $1.6980 (-11.1%), sugar at 17.58¢ (-4.4%), cocoa at $2,302 (-0.2%), cotton at 72.11¢ (-8.9%) and lean hogs at 86.100 (-3.4%).
Futures Referenced in Market Recap
|ICE||Dutch TTF Gas||December|
|NYMEX||ULSD (Heating Oil)||December|
|LME||Aluminum||3 Mo. Forward|
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