The week ended with a quiet day of trading. Stocks had a positive bias, but the participation seemed to be lacking. This was a busy week of earnings reports, some pretty good, some not so good. As we have noticed for the past 4 years, revenues have been difficult to increase, but corporations in America continue to do a very good job of managing the bottom line. But as earnings only creep upward while share prices rise, we are experiencing price to earnings multiple expansion. Instead of a market trading rather cheaply at 12 to 14 times earnings, we are getting closer to 16 or 17 times earnings. Now, valuation is not always a reason to buy or sell, but it’s important to keep price perspective.
Anyway, for the session, the Dow Jones Industrial Average was up 61 points to close at 15,570. The S&P 500 was up 7 points to finish the day at 1759. Gold was up $1 to trade at $1352 per ounce, while oil was up $.84 to trade at $97.95 per barrel WTI.
So far, the sometimes “scary” month of October has been kind to the bulls. With the political theatre on hold and earnings season winding down, it will be interesting to see what gets the attention of market participants for the next few weeks. We’ll keep an eye on it all and let you know what develops.
Have a great weekend everyone.