October 2017 Market Recap

(For the month ended October 31, 2017.)

The ghosts, goblins, and gremlins flying around at month’s end did little to deter the stock market’s upward climb. Major equity benchmarks hit new record highs on the shoulders of double-digit gains over the past five years. Company earnings were broadly stronger, according to the quarterly benchmarks maintained by FactSet. Overall, more than three-fourths of the companies reporting earnings by the end of October had results above Wall Street’s consensus estimates, FactSet reported.

Through 
10/31/17*
S&P 500 Dow Jones Industrial Average NASDAQ Composite
October

2.2%

4.3%

3.6%

YTD

15.0%

18.3%

25.0%

1-Year Annualized

21.1%

28.9%

29.6%

3-Year Annualized

8.5%

10.4%

13.3%

5-Year Annualized

12.8%

12.3%

17.7%

Closing Value

2,575.26

23,377.24

6,727.67

Source: DST Systems, Inc. The S&P 500, Dow Jones Industrials, and NASDAQ Composite are unmanaged indexes. It is not possible to invest directly in an index. Index performance does not reflect the effects of investing costs and taxes. Actual results would vary from benchmarks and would likely have been lower. Past performance is no guarantee of future results. Not responsible for any errors or omissions.

*Price only. Does not include dividends.

Economy Watch The early tally on the economy’s third quarter is in. The first estimate suggests real growth of 3%, roughly comparable to the second quarter. Keep in mind that this estimate is based on fragmentary data. A more precise picture should emerge when the second estimate is released after Thanksgiving.

Consumer Indicators The increased cost of gasoline paced a 0.5% overall price rise in September. The full 12-month rate was 2.2%. The headline unemployment rate edged down to 4.2%.

Interest Rate Summary The conventional 30-year Treasury benchmark stood just below 3% at month’s end. The 30-year inflation-protected benchmark was just less than 1%. That implies the market currently anticipates roughly 2% annual inflation.