Welcoming Earnings Season – CBOE's Weekly Market Recap: Oct. 10-14

High levels of uncertainty crept into last week’s market movements, causing whipsawing price action across the board. 

Cboe Global Markets Inc. CBOE reports that all the exchange-traded funds (ETFs) and indices recorded in this series experienced a price decrease last week. Germany’s iShares Core DAX UCITS ETF EXS and France’s Lyxor CAC 40 ETF CAC were the two exceptions, with both experiencing slight increases in the prior week. 

The cryptocurrency market has largely mirrored its traditional counterparts, experiencing decreases in Bitcoin BTC/USD, Ethereum ETH/USD and Solana SOL/USD — all of which have experienced very little change over the past two months. 

Last month’s consumer price index (CPI) reading exceeded analyst expectations, rising 0.4% in September despite tightening of monetary policy by the Federal Reserve. Currently, the CPI sits 8.2% higher than a year ago, reflecting inflation’s painful resilience to the Fed’s countermeasures. The market’s reaction to this news was mixed. The S&P 500, for example, plummeted in the aftermarket hours leading to the CPI report. Once the report was released, however, the S&P 500 recovered explosively, rising by 2.64% in one day — only to crash 2.28% on Friday. 

With uncertainty brimming, Cboe highlights BlackRock Inc. BLK as a chart that may have piqued investor interest following a positive earnings report and a solid reaction to the S&P 500’s bounce. 

Next week will be huge for the markets, with many of Wall Street’s top firms reporting earnings. Cboe has compiled a list of earnings for investors to keep an eye on at the bottom of this report. 

Keep scrolling to learn more. 

Quick Bites

Exchange-Traded Funds 

• The SPDR S&P 500 ETF SPY decreased by 1.42% over the previous week.
• The Invesco QQQ Trust Series 1 QQQ decreased by 3.11% over the previous week, mirroring the SPY’s overall movements.
• The iShares Russell 2000 ETF IWM decreased by 1.07% over the previous week.
• The Cboe Volatility Index™ VIX closed at 32 last week, a slight increase over last week’s close at 31.35.

World Markets

• The iShares Core MSCI Europe ETF IEUR decreased by 0.55% week-on-week.
• The iShares FTSE 100 UCITS ETF ISF decreased by 1.81% week-on-week. 
• The iShares Core DAX UCITS ETF EXS increased by 1.24% week-on-week.
• The Lyxor CAC 40 ETF CAC increased by 1.16% week-on-week. 

Chart Of The Week: BLK

This photo was taken from the TradingView platform

Shares of BlackRock, the world’s largest asset manager, experienced their largest daily increase since the pandemic last week guided by positive movement from the broader market and an earnings report that beat analyst expectations. 

Just as the S&P 500 completed a 2%-plus upward movement on Oct. 13, BlackRock released an earnings per share (EPS) reading of $9.55 — a 35% positive surprise — and revenue of $4.311 billion, a 2.73% positive surprise. The company’s share price rose by 6.58% that day, gaining 35 points. 

The presence of large volume at the lows of the chart, without followthrough to the downside, has led many to wonder whether a rally or bottom is forthcoming. 

U.S. Investing champion Mark Minervini commented on the subject on Twitter saying, “I see people commenting that we made a bottom today. It would be interesting to see the collective long-term performance of these brave prognosticators. There are old traders and bold traders, but not many old, bold traders. I never make bold predictions with my capital.”

Major Cryptocurrencies

• At the time of writing, Bitcoin has decreased by 1.63% since the previous week. It has hovered between $24,000 and $20,000 since the week beginning June 13. 
• At the time of writing, Ethereum has decreased by 2.89% since the previous week.
• At the time of writing, Solana has decreased by 9.04% since the previous week.

Upcoming Earnings Releases

A number of companies report earnings next week, including: 

Company	Earnings per share (EPS) estimate
Bank of America Corp. BAC	$0.78
Charles Shwab Corp. SCHW	$1.05
Netflix Inc. NFLX	$2.13
Goldman Sachs Group Inc. GS	$7.57
Johnson & Johnson JNJ	$2.52
Lockheed Martin Corp. LMT	$6.73
United Airlines Holdings Inc. UAL	$2.28
Tesla Inc. TSLA	$1.00
International Business Machines Corp. IBM	$1.8
Snap Inc. SNAP	-$0.02
Procter & Gamble Co. PG	$1.56
Interactive Brokers Inc. IBKR	$0.95

Click here for more weekly insights by Cboe. 

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Featured photo by Brendan Church on Unsplash