Read the highlights of this week’s commentary from Helios:
- The Magnificent Seven will take center stage as the five largest S&P 500 companies – Apple, Nvidia, Microsoft, Alphabet, and Amazon – are projected to report an average Q3 earnings growth of 19%, outperforming the S&P 500’s projected 4.3% rise. This marks their slowest growth in six quarters, raising investor doubts about Big Tech’s ability to sustain leadership amid high valuations.
- US existing home sales dropped to their lowest level in nearly 14 years in September, as buyers are holding off in hopes of lower mortgage rates and sellers are hesitant to list due to their existing low interest rates. In contrast, new home sales rose by 4.1% in September, with the supply of new homes reaching levels not seen since early 2008.
- The Federal Reserve’s October Beige Book revealed a softer economic outlook, with activity mostly unchanged since early September. The report found that labor demand eased, consumer spending shifted toward cheaper options, and wage growth slowed. Fed officials cite these anecdotal trends as supporting evidence for continued rate cuts, despite upside surprises in official statistics on employment, consumer prices and retail sales in September.
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