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\n Share:<\/span><\/p>\n The S&P 500 index<\/strong> gained 0.45% last week despite a severe sell-off on Thursday and Friday, which cut its performance in half. A spike in oil prices<\/a> and US Treasuries caused by heightened worries about the Israel-Gaza hostilities led the S&P 500 closing on Friday much lower than Wednesday\u2019s close. However, earnings on Friday from a number of the nation\u2019s biggest banks, such as JPMorgan (JPM)<\/strong>, Citigroup (C)<\/strong> and Wells Fargo (WFC)<\/strong>, helped the Dow Jones index edge out a gain.<\/p>\n This week the index should likely rebound with a heavy load of major companies reporting third-quarter earnings results. While Monday has a rather light showcase, Johnson & Johnson (JNJ)<\/strong>, Bank of America (BAC)<\/strong> and Goldman Sachs (GS)<\/strong> report on Tuesday. This will be followed by Tesla (TSLA)<\/strong>, Morgan Stanley (MS)<\/strong> and Netflix (NFLX)<\/strong> on Wednesday. Later in the week, Union Pacific (UNP)<\/strong>, American Express (AXP)<\/strong> and Taiwan Semiconductor (TSM)<\/strong> join the mix.<\/p>\n US Retail Sales for September on Tuesday will be followed by a significant speech by Federal Reserve Chair Jerome Powell on Thursday. US Treasuries are seeing their yields increase across the yield curve on Monday, particularly the longer duration bonds.<\/p>\n Following on from Friday\u2019s finish, Dow Jones futures are again leading their S&P 500 and NASDAQ 100 brethren, though all three are in the green two hours before the open.<\/p>\n Based on results from large money-center banks last Friday, Bank of America\u2019s prospects this Tuesday look to have improved. Data on Monday shows that its credit card lending business was largely stable in September as delinquencies rose a couple basis points and net charge-offs declined a similar amount.\u00a0<\/p>\n When earnings get released early Tuesday, shareholders will want to know how Bank of America\u2019s large portfolio of low-paying Treasury bonds is holding up. Wall Street analysts expect the bank to report earnings per share (EPS) of $0.82 on revenue of $25.07 billion. The stock is down more than 6%, however, in Monday\u2019s premarket after closing up 8% on Friday.<\/p>\n Here are other consensus earnings forecasts for stocks reporting this week:<\/p>\n Tuesday:<\/p>\n Wednesday:<\/p>\n Thursday:<\/p>\n Friday:<\/p>\n \u00a0<\/p>\n US Retail Sales for September are the only significant economic indicator to be reported this week and will likely be overshadowed in market impact by company earnings. They are expected to arrive before the market open on Tuesday showing 0.3% growth from the August number. This is down from August\u2019s 0.6% MoM figure. Retail Sales ex Autos are expected to grow at 0.2% in September compared with August\u2019s 0.6% reading.\u00a0<\/p>\n US Building Permits and Housing Starts for September will be released on Wednesday. Building Permits are expected to fall below the figure from August by about 90K, while Housing Starts are expected to exceed August\u2019s reading by about 100K.<\/p>\n The Fed\u2019s Waller, Williams, Bowman, Cook and Jefferson will give speeches throughout the week that precede Jerome Powell\u2019s speech during the market on Thursday (19:00 GMT). The CME Group\u2019s FedWatch Tool gives a 90% chance that the central bank will hold interest rates unchanged at its November 1 meeting, so any lip service to the contrary could lead equities to decline.<\/p>\n <\/p>\n The S&P 500 is a widely followed stock price index which measures the performance of 500 publicly owned companies, and is seen as a broad measure of the US stock market. Each company\u2019s influence on the computation of the index is weighted based on market capitalization. This is calculated by multiplying the number of publicly traded shares of the company by the share price. The S&P 500 index has achieved impressive returns \u2013 $1.00 invested in 1970 would have yielded a return of almost $192.00 in 2022. The average annual return since its inception in 1957 has been 11.9%.<\/p>\n<\/section>\n Companies are selected by committee, unlike some other indexes where they are included based on set rules. Still, they must meet certain eligibility criteria, the most important of which is market capitalization, which must be greater than or equal to $12.7 billion. Other criteria include liquidity, domicile, public float, sector, financial viability, length of time publicly traded, and representation of the industries in the economy of the United States. The nine largest companies in the index account for 27.8% of the market capitalization of the index.<\/p>\n<\/section>\n There are a number of ways to trade the S&P 500. Most retail brokers and spread betting platforms allow traders to use Contracts for Difference (CFD) to place bets on the direction of the price. In addition, that can buy into Index, Mutual and Exchange Traded Funds (ETF) that track the price of the S&P 500. The most liquid of the ETFs is State Street Corporation\u2019s SPY. The Chicago Mercantile Exchange (CME) offers futures contracts in the index and the Chicago Board of Options (CMOE) offers options as well as ETFs, inverse ETFs and leveraged ETFs.<\/p>\n<\/section>\n Many different factors drive the S&P 500 but mainly it is the aggregate performance of the component companies revealed in their quarterly and annual company earnings reports. US and global macroeconomic data also contributes as it impacts on investor sentiment, which if positive drives gains. The level of interest rates, set by the Federal Reserve (Fed), also influences the S&P 500 as it affects the cost of credit, on which many corporations are heavily reliant. Therefore, inflation can be a major driver as well as other metrics which impact the Fed decisions.<\/p>\n<\/section>\n<\/div>\n \u00a0<\/p>\n \u00a0<\/p>\n Monday, October 16 – Charles Schwab (SCHW)<\/strong><\/p>\n Tuesday, October 17 – Johnson & Johnson (JNJ), Bank of America (BAC), Lockheed Martin (LMT), Goldman Sachs (GS)<\/strong><\/p>\n Wednesday, October 18 – Tesla (TSLA), Procter & Gamble (PG), Abbott Laboratories (ABT), Netflix (NFLX), Morgan Stanley (MS)<\/strong><\/p>\n Thursday, October 19 – Philip Morris International (PM), Union Pacific (UNP), AT&T (T), CSX (CSX), Taiwan Semiconductor Manufacturing (TSM), American Airlines Group (AAL)<\/strong><\/p>\n Friday, October 20 – American Express (AXP), Schlumberger (SLB)<\/strong><\/p>\n \u00a0<\/p>\n\n
S&P 500 News: Tesla, Netflix, American Express, Taiwan Semi earnings most-watched<\/h2>\n
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Retail sales are the only major data drop this week<\/h2>\n
S&P 500 FAQs<\/h2>\n
Earnings of the week<\/h2>\n
What they said about the market \u2013 Mike Wilson<\/h2>\n