Market Recap – October 2012

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Posted on November 2nd, 2012

Superstorm Sandy had relatively little impact on financial markets despite the first back-to-back weather-related closings in more than a century. However, other factors–disappointing corporate earnings, anxiety about the proximity of elections and the fiscal cliff, profit-taking after September’s year-to-date highs–had already taken their toll. Investors brushed off some relatively benign economic data and sent equities south. The Nasdaq, which suffered in part from lackluster earnings reports from some bellwether tech companies, was hit the hardest. Meanwhile, the lack of fresh trauma abroad, a reaffirmation of Spain’s investment-grade bond rating, and a timeline for creation of a eurozone banking supervisor helped the Global Dow.

The yield on the 10-year U.S. Treasury rose more than 20 basis points before retreating a bit at month’s end. Gold fell roughly $70 to end at $1,710 an ounce. As oil and gas wells sidelined by Hurricane Isaac began to come back online, oil prices fell from more than $92 a barrel to just over $86 a barrel, helping in turn to reduce gas prices. And despite sagging a bit mid-month, the dollar ended October relatively unchanged against a basket of six foreign currencies.

Market/Index 2011 Close Prior Month As of 10/31 Month Change YTD Change
DJIA 12217.56 13437.13 13096.46 -2.54% 7.19%
Nasdaq 2605.15 3116.23 2977.23 -4.46% 14.28%
S&P 500 1257.60 1440.67 1412.16 -1.98% 12.29%
Russell 2000 740.92 837.45 818.73 -2.24% 10.50%
Global Dow 1801.60 1921.70 1920.16 -0.08% 6.58%
Fed. Funds .25% .25% .25% 0 bps 0 bps
10-year Treasuries 1.89% 1.65% 1.72% 7 bps -17 bps

Equities data reflect price changes, not total return.

 

 

Source: Broadridge