Daily Market Recap

The market started calmly this morning after a volatile week. There was little in the way of overnight news form foreign markets. Then the market shot higher on better than expected numbers from the October University of Michigan Consumer Sentiment Survey.  The reading of 83.1 was the highest since September of 2007. The market rally did not last and the averages moved to negative territory later in the morning session. The S&P 500 was off 0.30% today and 2.2% for the week. 

The financial sector was hit hard today. JP Morgan Chase reported earnings well in excess expectations. Revenues came in above consensus expectations also, but the stock sold off. Wells Fargo's net income came in slightly ahead of expectations but the stock sold off as net interest margins were slightly below expectations. Fee revenue growth more than made up for the interest margin shortfall but the market focused on interest margin.  Other financials sold off in sympathy with the names that reported. 

In a move toward more stability today staples stocks outperformed the broader market.  Food stocks did particularly well. Investors bid these names higher in response to the volatile markets this week. 

The transport sector outperformed the broader market. The transports were up 0.9%.  Trucker JN Hunt reported better than expected earnings after the close yesterday and traded 3.5% higher today. 

Overall producer prices rose 1.1% in September ahead of the expected rise of 0.8%. Core producer prices were unchanged against an expected rise of 0.2%. 

Earnings season kicks into full gear with over 200 companies reporting next week. 

Source: PFS Group