Weekly Market Recap – October 8, 2021
The news that shaped Wall Street’s mood for the week was that Senate minority leader McConnell, on Wednesday, without making any demands, offered Democrats an emergency short-term extension to the Federal debt ceiling into December. The transition to the closing months of 2021 is marked by higher gas prices at the pump. Also of note, are shortages of certain essential staples and consumer goods stemming from the growing logjam of container ships at major U.S. port cities.
Monthly economic statistics compared with previous releases were: factory orders +1.2% vs. +0.7%, balance of trade -$73.3 billion vs. -$70.3 billion, consumer credit $14.0 billion vs. $17.0 billion, wholesale inventories (revision) 0.0% vs. +1.2%, non farm payrolls 194,000 vs. 366,000, and the unemployment rate 4.8% vs. 5.2%. Weekly initial jobless claims were 326,000 vs. 364,000.
After a week of less negative financial market news than the two previous weeks, the indices we track ended as follows: DJI 34,746.25 (+1.2%), S&P 500 4,391.34 (+0.8%), NASDAQ Composite 14,579.54 (+0.1%), CBOE VIX, 18.77 (-11.3%), U.S. Dollar Index 94.10 (+0.0%), and S&P’s GSCI 576.87 (+2.7%).
Metals futures contracts on our radar were mostly higher. The settlements and corresponding percentage movements were: gold at $1,757.40 (-0.1%), silver at $22.705 (+0.7%), platinum at $1,028.20 (+5.6%), palladium at $2,073.00 (+8.9%), copper at $4.2755 (+2.1%), and aluminum at $2,966 (+3.8%).
Natural gas backed off from ten-year highs due to greater-than-expected storage numbers, an increase in reported production, and a warmer U.S. temperature forecast. The November contract eased 1.0% for the week, ending at $5.565 per mmBtu. The petroleum sector of the energy category maintained the strength from the prior week. NYMEX WTI spiked 4.6% to $79.35 per barrel, and Brent crude went out at $82.39 (+3.9%). U.S. refined products followed suit: heating oil gained 3.8%, closing the week at $2.4737, and RBOB gasoline added 5.2% to $2.3662 per gallon.
The nine agricultural futures we monitor were mixed in terms of directional movement, five decreased and four increased. The contracts that lost value were: soybeans at $12.43 (-0.3%), corn at $5.30½ (-2.0%), wheat at $7.34 (-2.8%), coffee at $2.0135 (-1.3%), and lean hogs at 81.500 (-4.3%). The gainers were: sugar at 20.29¢ (+1.1%), cocoa at $2,750 (+1.5%), cotton at 110.60¢ (+5.8%), and live cattle at 130.250 (+4.0%).
Futures Referenced in Market Recap
|NYMEX||ULSD (Heating Oil)||November|
|LME||Aluminum||3 Mo. Forward|
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