Editor
Investors digested dismal earnings numbers from Apple (AAPL) and Amazon (AMZN) that came during an otherwise excellent quarterly reporting season from several major businesses, sending stocks to new highs on Friday.
The S&P 500 hit intraday and closing highs never seen before. In October, the index increased by more than 6.5%, marking its most significant single-month gain since November 2020. During the month, the consumer discretionary, energy, and information technology sectors outperformed.
Even when a couple of heavily weighted technological titans saw their shares fall, the Nasdaq managed to set a new high overall.
Amazon’s stock fell after the e-commerce powerhouse failed third-quarter earnings estimates and anticipated a rise in expenses in the fourth quarter owing to supply chain interruptions and increased labour, materials, and freight costs. According to Amazon’s earnings announcement, these factors are projected to result in “several billion dollars in increased costs” in the current quarter.
Apple, too, disappointed Wall Street in its fiscal first-quarter earnings, with key iPhone sales falling short of estimates despite its new iPhone 13 smartphone series. Apple’s suppliers, such as Taiwan Semiconductor Manufacturing Co., Qualcomm, and Broadcom, saw their stock prices drop.
The results appeared to validate Wall Street’s predictions that escalating supply chain disruptions, labour expenses, and material shortages affected businesses of all kinds as the holiday season approached, making it difficult for them to keep up with rising demand.
Meanwhile, investors digested a mixed package of economic data, which included a weaker-than-expected third-quarter gross domestic product figure. While the report was vast in coverage, it only provided a backwards-looking assessment of the economy. Some analysts predicted that economic activity would perk up in the year’s closing months, bolstering company performance and stock prices.
Experts suggest this is just the beginning of a new high, all set to be projected in quarter 4.
As for Crypto, there haven’t been any massive projections or new highs or lows following the rise of Shiba Inu this week.
The markets on the last week of October indeed had their ups and downs. We believe the best is yet to come, and this was just the teaser for excellent performance in the winter of 2021.
