The S&P 500 index finished down 1% this week to a closing price of 2,133. While stocks finished broadly lower, the 10-year treasury yield rose to 1.80%, and Crude Oil closed above $50/barrel.
Earnings season got underway with Alcoa (AA) and Fastenal (FAST) reporting results on Tuesday. Both companies missed their respective earnings estimates, noting softness in North American end-markets. On the other side, CSX (CSX) and Delta Airlines (DAL) reported numbers that were better than analysts' expectations. This generally boosted Rail and Airline stocks higher. Friday saw a number of strong bank earnings, including J.P. Morgan (JPM), Citigroup (C), Wells Fargo (WFC), and PNC (PNC).
In macro news, Chinese exports unexpectedly slid lower, reminding investors of the tepid outlook for global growth. The Federal Reserve minutes reinforced the idea of the Fed hiking rates in December. PPI and Retail Sales data was solid, with PPI rising 0.3% and Retail Sales up 0.6%. This is good news in the sense that producer price inflation is moving up where the Fed wants to see it, and consumers are continuing to spend at a modest pace.
Next week, investors will look at Housing, CPI, and Industrial Production data, as well as a large number of companies' earnings.