Low Markets and Lower Energy
ROBARE & JONES ON THE MARKETS
The S&P 500 posted a 0.8% increase in the first full week of October and Q4 despite falling slightly Friday amid disappointment over weaker-than-expected US September job growth.
The Labor Department's September employment report showed nonfarm payrolls rose by only 194,000, well below the 500,000 jobs increase expected in a survey compiled by Bloomberg. Markets rose on the week as gains posted Tuesday through Thursday, boosted by US lawmakers reaching a deal on a short-term debt-limit extension, outweighed the Monday and Friday declines.
This week, the Q3 earnings reporting period will begin. The companies expected to release their latest quarterly results next week include JPMorgan Chase (JPM), Delta Air Lines (DAL), Alcoa (AA), Bank of America (BAC), UnitedHealth Group (UNH) and Goldman Sachs Group (GS).
In economic data, this week's reports are expected to include the September consumer price index on Wednesday, the September producer price index on Thursday, and September retail sales on Friday.
Let's take a look at the markets from this past week!
Currently, there is a mismatch in energy supply and energy demand in many parts of the world. In some places, it is creating issues that countries haven’t experienced in some time. For instance:
- In Europe, the cost to heat the average home rose about fivefold from September 2020 to September 2021, according to The Economist.
- In India, where about 70 percent of electricity is generated by burning coal, coal supplies are running low, according to Arunoday Mukharji of BBC.
- In China, rolling blackouts have implemented to address an electricity shortage, reported Peter Hoskins of BBC.
- In Lebanon, power plants went offline over the weekend and the country is expected to be without power for several days, reported Laila Bassam of Reuters.
- In the U.S., oil prices are at a seven-year high, and the price of gasoline was above $3 a gallon. In some places, it was above $5 a gallon, reported Pippa Stevens of CNBC.
Overall this energy shortage may be more challenging to overcome than some other types of shortages
What are your concerns about energy?