All Three Major Indexes Close at All-Time High, October Strongest Month of 2021

Key Takeaways

  • S&P 500 closed at 4,605.38, an ATH, up from 4,544.90. The last 10 days have marked the best reaction to earnings of S&P 500 components in the last two years.
  • Our team noticed that companies that miss earnings appear to be getting more punished this season than in recent quarters. We expect to see differentiation increasing instead of sectors broadly moving together.
  • October has been the best month of the year so far. The “Everything Rally” has begun and we suspect it will continue into the end of the year.
  • Even more impressive is that the market has shown strength despite two tech-titans having major earnings misses. $AMZN and $AAPL missed. $MSFT is now the largest company in the world by market cap.

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Sometimes markets can be spooky in October as many investors seemed to expect. However, there were voices in the wilderness that predicted this would be a strong month and would actually yield an Everything Rally. The DJIA closed at 35,819.29 and the Nasdaq finished at 15,498.39 despite a drag from two of the world’s largest companies missing expectations.

The market has been exceptionally strong in October. We are likely beginning the end of the most accommodative Federal Reserve posturing in history a...

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