Fifth Third Economic Beat: Mixed Performance in Choppy Trading | 53 Bank - 53 Com Activate

By Gavin | October 25, 2018

I'm Greg curveball senior portfolio manager with Fifth Third Bank US equities, put in a mixed performance in choppy trading last week following a big sell-off in the prior week, that saw the S&P 500 fall the most, since March deeply oversold conditions seemed to be the excuse for the welcome stability of equity prices market.

Participants noted that the S&P 500 was more than 3.7 standard deviations, below its 50-day moving average, the most oversold since August 2015, in addition, a number of market strategists rehashed the positive fundamental narrative revolving around US economic outperformance and elevated earnings, they also highlighted expected support from a near-term resumption of corporate buyback activity favorable seasonality, and signs of bond market stabilization that being said Treasury prices declined last week with the yield on a 10-year treasury, climbing back up to three point one nine percent, the US dollar was up as was gold, finished higher for a third straight week, WTI crude was down over three percent following a four percent pullback in the prior week, there were a number of moving pieces last week, that were noteworthy while stocks entered the week and deeply oversold territory and investors continue to focus on the positive fundamental narrative, there were also thoughts that the market has not seen sufficient capitulation for a meaningful bounce growth and momentum lagged, while defense of defensives outperformed earnings metrics look good, but seem to be overshadowed by peak growth, and margin concerns hawkish takeaways from the September, FOMC minutes last week also played into the recent headwind, suggesting tighter financial conditions and Saudi scrutiny continue to ratchet higher.

The economic calendar is full of interesting data releases this week starting midweek, we get several reads on the US economy with manufacturing and services PMI and new home sales, then Thursday we get durable goods orders and pending home sales on Friday, we get our first read of third quarter, GDP investors are expecting a three point four percent expansion here, this is the decline from the second quarter of a four point two percent expansion, but it's still showing a US economy, that's growing at a healthy clip also on, get the feds preferred measure inflation, that's core PCE or personal consumption expenditures, this metrics is expected to come in just shy of the feds 2% target. Also on Friday, we get both personal consumption and personal income for the third quarter as always.