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Corporate Earnings Give Stocks a Boost

Corporate Earnings Give Stocks a Boost

October 25, 2022
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Last week the stock market built on gains from the previous week to form the first uptrend since early September. Thus far, corporate earnings have been better than expected and are the primary driver for the market rally.

This week some of the biggest names in corporate America will report earnings and may solidify the positive earnings news. This data can provide support to a stock market trying to find a solid footing for next week’s big news events. On Wednesday the 2nd, the Federal Reserve will make its decision on the next interest rate hike as well as guidance for future hikes. Then on Friday the 4th, the release of the all-important jobs report will give investors and the Fed insight as to how the rate hikes are affecting employment levels. Both events will most likely move the financial markets in a major way, either they will boost the stock market rally higher, or reverse and re-test the lows of mid-October.

The stock market is about to exit the historically weak part of the year, from May through October, and enter the historically strong part of the year between November and April. October is also known as the month that ends bear markets, with a much higher percentage of bear markets bottoming in October versus any other month. These are general historical trends and interesting facts, and although they aren’t guarantees, hopefully they will hold true for the market this year.

Want to discuss historical stock market patterns, or finish off the year with some financial organization and consolidation? Contact me here.

Photograph by: Francesco Califano on Unsplash

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