Stock Market Outlook for November 1, 2019
S&P 500 Index has averaged a gain of 1.2% in November with 68% of periods showing positive results over the past 50 years.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.
Stocks Entering Period of Seasonal Strength Today:
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Boyd Gaming Corp. (NYSE:BYD) Seasonal Chart
Beacon Roofing Supply Inc. (NASD:BECN) Seasonal Chart
Briggs & Stratton Corp. (NYSE:BGG) Seasonal Chart
American Equity Investment Life Holding Company (NYSE:AEL) Seasonal Chart
Eastern Platinum Ltd. (TSE:ELR.TO) Seasonal Chart
ArcelorMittal SA (NYSE:MT) Seasonal Chart
Waddell & Reed Financial Inc. (NYSE:WDR) Seasonal Chart
Winnebago Industries Inc. (NYSE:WGO) Seasonal Chart
Eaton Corp. (NYSE:ETN) Seasonal Chart
ProAssurance Corp. (NYSE:PRA) Seasonal Chart
iRobot Corp. (NASD:IRBT) Seasonal Chart
Pizza Pizza Royalty Corp. (TSE:PZA.TO) Seasonal Chart
Flexsteel Industries, Inc. (NASD:FLXS) Seasonal Chart
Cargojet Inc. (TSE:CJT.TO) Seasonal Chart
Morneau Shepell Inc. (TSE:MSI.TO) Seasonal Chart
WSP Global Inc. (TSE:WSP.TO) Seasonal Chart
Ritchie Bros. Auctioneers Inc. (TSE:RBA.TO) Seasonal Chart
Owens Corning Inc. (NYSE:OC) Seasonal Chart
The Markets
Stocks sold off to close the final day of October as investors reacted to a weak report on manufacturing conditions in Chicago and doubts pertaining to a comprehensive trade deal between the US and China. The S&P 500 Index shed three-tenths of one percent, continuing to maintain support at the open gap that was charted on Monday around the previous all-time high of 3028. Areas most sensitive to the trade skirmish sold off the most, including the materials and industrial sectors, which fell by over one percent on the day. Utility stocks were one of the few segments to finish the day higher as bond yields declined.
For the month of October, the S&P 500 Index failed to show the volatility that is typical to start the last quarter of the year. The large-cap benchmark added 2.04% in October, beating the historical average that calls for a 0.9% return during the autumn month. The benchmark remains supported by its rising 20-month moving average; investors have been reluctant to allow the index to drift too far from this level of safety that has supported prices during bouts of volatility since the year began. The 20-month moving average currently sits at 2810.
As for seasonal tendencies in the month ahead, November is the first full month of the best six months for stocks. The S&P 500 Index has gained 1.2%, on average, in this second to last month of the year with 68% of periods over the past 50 years showing gains. Returns in this month have ranged from a loss of 11.4% in November of 1973 to a gain of 10.2% in November of 1980. To receive insight on how to position your portfolio for the month ahead, subscribe to our service and we’ll send you our monthly outlook for November.
Sentiment on Thursday, as gauged by the put-call ratio, ended bearish at 1.16.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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