Market Watch: Retail Sales Surge, Homebuilder Sentiment Declines, Treasury Yields Spike, and Earnings Season Spotlight on Tech Giants

  • Home
  • Market Recaps
  • Market Watch: Retail Sales Surge, Homebuilder Sentiment Declines, Treasury Yields Spike, and Earnings Season Spotlight on Tech Giants
Young couple buying pans in supermarket

Market Watch: Retail Sales Surge, Homebuilder Sentiment Declines, Treasury Yields Spike, and Earnings Season Spotlight on Tech Giants

SPY
S&P 500

Last Week: -2.39%
YTD: 11.37%
1 Year: 17.10%

DIA

Dow Jones Industrial Average

Last Week: -1.58%
YTD: 1.53%
1 Year: 11.45%

ONEQ
NASDAQ

Last Week: -2.98%
YTD: 25.66%
1 Year: 24.11% 

Russell 2000

Last Week: -2.25%
YTD: -3.47%
1 Year: .03% 

Large Growth

YTD: 27.25%
1 Year: 28.60% 

*As of 9/30/2023

Large Value

YTD: 3.53%
1 Year: 19.68% 

*As of 9/30/2023

Retail Sales Rise

Retail sales rose by .7% on the month. This was well above the .3% Dow Jones estimate. Retail sales is a measure closely watched by the Federal Reserve when it comes to interest rate hikes. We continue to see varying information that is contradictory when it comes to predicting a recession and future rate increases. Consumer spending kept up with inflation this past month. In 2023, we have seen household debt rise, but coming off healthy household balance sheets, this is not too surprising.

Homebuilder Sentiment

62% of builders reported offering sales incentives in October, up from 59% in September. This is the third straight monthly decline in builder confidence. The average 30-year fixed mortgage rates remain over 7%.

10-Year Treasury

Fed Chairman Jerome Powell stated “inflation is still too high,” sending the 10-year Treasury yield over 5% for the first time since July 2007. The bond market typically trades in anticipation of key data and information regarding interest rate hikes. Given Chairman Powell’s comments, it is signaling future rate hikes are likely coming. Increasing rates will undoubtedly mean mortgage rates, car loans, and student loans will see their interest rates climb.

Earnings Season

Investors will be looking for strong earnings this week from Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Meta Platforms (META), Amazon (AMZN) and other technology and growth stocks. With bond yields being at 15-year highs, investors will be looking for reasons to continue adding to equities versus fleeing to fixed income and cash. Growth and tech companies are more vulnerable to higher yields, as their future cash flows are seen as less valuable when investors are able to get respectable returns from risk-free government bonds.

  • Alex Wolfe

    Alex is a Certified Financial Planner™. He brings nearly a decade of experience working with individuals, families, and business owners. Prior to working for Base Wealth Management, Alex worked for Fidelity Investments and an independent wealth management firm in Venice, FL. Through many years of practice, he specializes in helping clients navigate their financial goals through comprehensive financial planning. He received his bachelor’s degree in economics from Texas A&M University.

    View all posts

Schedule a Consultation

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Register for our Open House event!

2022 Tax Document Information

As a Base Wealth Management client, you should receive your paper tax documents via mail in the coming weeks. Or, if you previously had an online account with Pershing’s NetX360, you should be able to access your 2022 tax documents through that portal. 

If not, or if you experience any issues, please reach out to Tim O’Brien (tim.obrien@intervestintl.com).

Get a FREE Solo 401(K) Guide

Simply submit your name and email to receive a PDF straight to your inbox.

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.
 *We protect your data and HATE spam.
 

Get a FREE Roth 457 Guide!

Simply submit your name and email to receive a PDF straight to your inbox.

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.
 *We protect your data and HATE spam.
 

Get a FREE Roth 401(K) Guide

Simply submit your name and email to receive a PDF straight to your inbox.

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.
 *We protect your data and HATE spam.
 

Get a FREE Solo 401(K) 2-Pager for FireFighters

Simply submit your name and email to receive a PDF straight to your inbox.

"*" indicates required fields

Name*
This field is for validation purposes and should be left unchanged.
 *We protect your data and HATE spam.
 

Get a FREE copy of Divorce the IRS

If you would like to request a physical copy of Divorce the IRS, please fill out the form below.

"*" indicates required fields

Name*
Address*
This field is for validation purposes and should be left unchanged.
 *This book is most suitable for households with $250K or more in investable assets.
 

OOPS!

You’ve stumbled across an element that isn’t quite ready for the web yet. We’re working on a lot of new features so stay tuned.

-The Base Wealth Team

Choose your advisor

Dan DiLascia

Sean Koscho

Kyle
Howell

Josh
Pisa