GPM Weekly Snapshot

Stocks and Bonds were broadly higher last week driven by the beginning of third quarter's earnings season.

U.S. Industrial Production report data moved up only 0.1% for the month of September. Overall, the factory sector has been flat after strong readings in June and July. The Consumer Price Index (CPI) rose 0.3% in September as expected. The y/y rate for CPI is up to 1.5% which is the highest since October 2014. Housing data was mixed with Housing Starts declining 9%, however the important single-family component was up 8.1%. Existing Home Sales increased 3.2% to an annualized rate of 5.47 million. 

Earnings season was in full swing last week with a large amount of companies reporting results. The week kicked off with Netflix (NFLX) posting very strong numbers, and IBM (IBM) leaving investors wanting more. Tuesday saw a nice beat from UnitedHealth (UNH) and Intel (INTC), however Intel disappointed investors by lowering gross margin guidance. A slew of industrial companies reported on Thursday including strong results from Snap-On (SNA) and slightly light numbers from Union Pacific (UNP) and Illinois Tool Works (ITW). Microsoft (MSFT) stock reached a new all-time high after a solid earnings beat and outlook. Finally, on Friday, General Electric (GE) and Honeywell (HON) reported sales and earnings that were in-line with analyst expectations. 

Next week investors will continue digesting another wave of companies' earnings and U.S. data that includes GDP and Durable Goods.