The S&P 500 Closes October 2021 at All Time High

The S&P 500 (Index: SPX) continued the rally it began last week, closing at an all-time high of 4,605.38 on Friday, 29 October 2021.

The trajectory of the S&P 500 index continues to fall within the redzone forecast, though now it falls in the upper half of the forecast range. Sharp-eyed readers will note that with an improving outlook for future dividends, the forecast range itself has shifted to a less negative direction.

The index began rallying last week when President Biden’s proposed tax rate hikes were dropped from legislation under consideration in the U.S. Congress. The market received an additional boost this week when the U.S. House dropped the U.S. Senate’s proposal to tax unrealized (or “paper”) capital gains, which you’ll see captured in the market moving headlines of the week.

Monday, 25 October 2021

• Signs and portents for the U.S. economy:

• With corporate tax off table, U.S. Democrats turn to billionaires to fund spending bill
• Amazon bulks up shipping capacity to battle holiday season snarls
• Oil prices reach multi-year highs on tight supply

Fed minions not interested in focusing on dual mandate of jobs and inflation:

• Fed to hold conferences in November focused on diversity and inclusion

Bigger trouble developing in the Eurozone:

• German growth to slow sharply in final months of 2021, Bundesbank says
• Supply headaches sink German business morale to six-month low

S&P 500, Dow close at new highs as Facebook starts heavy earnings week

Tuesday, 26 October 2021

• Signs and portents for the U.S. economy:

• No end in sight for labor shortages as U.S. companies fight high costs
• U.S. home price growth slowed in August- S&P Case-Shiller

• U.S. new home sales hit six-month high; median price stays above $400,000

Oil benchmarks settle at highest since 2014 on short supply

Bigger trouble developing in the Eurozone:

• Raw material supply problems hurt German industrial exports – Ifo
• Exclusive-Germany cuts 2021 GDP growth forecast, lifts 2022 estimate – sources

BOJ minions to keep doing what they do best:

• BOJ to defy global rate hike trend, cut price outlook

Wall Street hits record but Facebook weighs

Wednesday, 27 October 2021

• Signs and portents for the U.S. economy:

• Top House tax writer says billionaires’ proposal out of Biden plan -Bloomberg
• U.S. companies to keep prices high as supply chain headaches persist
• U.S. business spending on equipment strong; auto shortages sink exports
• Analysis-The 1970s all over again? Stagflation debate splits Wall St

Bigger trouble developing in Japan, Eurozone:

• Japan’s Sept retail sales decline for a second month
• Germany cuts 2021 growth outlook as supply problems, energy prices bite
• German auto makers can’t build hundreds of thousands of cars due to chip shortages – Altmaier

Cyclicals drag S&P 500 lower; Microsoft, Alphabet keep Nasdaq flat

Thursday, 28 October 2021

• Signs and portents for the U.S. economy:

• Detroit’s chip woes drag on U.S. economic growth
• Delta variant, shortages severely restrict U.S. economic growth in third quarter
• U.S. pending home sales unexpectedly fall in September

Fed minions developing crush:

• Expectations of more aggressive Fed crush U.S. yield curve
• U.S. rate options market bets on aggressive Fed hikes

Bigger trouble developing in Australia, South Korea:

• Australia’s central bank loses yield control as bonds melt down
• S.Korea Sept factory output contracts as auto chip shortage bites

Bigger inflation developing all over:

• From beers to cars, German consumers face higher prices

BOC minions say their monetary policy is perfect; Chief ECB minion okay with inflation; BOJ minions get gloomy:

• Bank of Canada ‘exactly right’ now on inflation, rates, former governor says

• Canadian wage inflation looms as ‘perfect storm’ hits labor market

ECB’s Lagarde sees higher inflation; pushes back on rate-hike bets

• “Inflation, inflation, inflation” still seen as temporary, Lagarde says

ECB holds policy unchanged, keeping stimulus taps wide open

BOJ cuts Japan’s potential growth estimate, highlighting need for reforms

S&P, Nasdaq hit record closing highs on earnings bullishness

Friday, 29 October 2021

• Signs and portents for the U.S. economy:

• U.S. consumer spending strong; robust wage gains hint at long spell of high inflation
• U.S. labor costs power ahead in third quarter as wages surge
• Yellen expects inflationary pressures to ease by second half of 2022

Fed minions face inconvenient data:

• New data show Fed’s inflation debate still unresolved

Bigger trouble developing in Mexico, Canada, China, Eurozone, Japan:

• Mexican economy shrinks for first time since pandemic rebound
• Canada economy seen weaker than expected as supply chain woes weigh
• China’s factory activity expected to shrink slightly in October – Reuters poll
• Supply shortages hold back German third-quarter growth
• Japan’s factory output hit by supply snags as outlook darkens

ECB minions face inconvenient data:

• Euro zone growth, inflation soar, leaving ECB with dilemma
• ECB’s Mueller says high inflation could force cut in stimulus
• ECB survey shows euro zone inflation just below goal in 2022

Wall Street shakes off Amazon, Apple weakness to end modestly higher

We’ve previously featured Seeking Alpha’s Dividend News, but since they’ve revamped it and changed its web address, here it is again! SA provides an excellent running flow of dividend declarations as their bots detect them.