Three Things to Know & Watch

Oct 17, 2022

By Bill Hornbarger, Chief Investment Officer

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Three Things to Watch

  • Third-quarter earnings season gets rolling this week. Highlights include Tesla, Netflix, Bank of America as well as seven Dow components. Market participants will be very attuned to forward guidance. Bloomberg’s earnings estimate for the S&P 500 for the next 12 months is $232/share.
  • Nine Fed speakers will be on the tape and the Fed will release the Beige Book on Wednesday. The Beige Book, more formally known as the Summary of Commentary on Current Economic Conditions by Federal Reserve District, is published eight times per year and gathers anecdotal evidence on economic conditions in each of the Federal Reserve Bank Districts.
  • The economic calendar will include updates on industrial production, the Empire District Manufacturing Report (New York state), the leading index (leading economic indicators), and multiple housing reports including housing starts and existing home sales. The leading index is expected to be down 0.3 % month-over-month, which would be the seventh consecutive month of decline.

Three Things to Know

  • Last week, retail traders bought $19.9 billion worth of puts to open and $6.5 billion in calls to open. This is the first time in history that puts were three times calls and indicates extremely bearish sentiment. (Source: Jason Goepfert)
  • Ten-year Treasury yields have risen for 11 consecutive weeks, the longest such streak since at least 1978. (Source: JP Morgan)
  • Baseball Hall of Fame relief pitcher Bruce Sutter passed away last week at the age of 69. He was the first pitcher to reach the Hall of Fame without ever starting a game. (Source: MLB Commissioner Rob Manfred)


The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.