By Paul R. La Monica, CNN Enterprise
The Dow fell almost 130 factors, or 0.4% Monday, but it surely nonetheless ended October up 14% — its greatest month-to-month achieve since January 1976. The blue chips stay off by virtually 10% this yr, although.
In the meantime, the S&P 500, which closed down 0.8% Monday, has dropped about 20% in 2022. The tech-heavy Nasdaq completed 1% decrease Monday and has plunged 30% this yr. However each indexes additionally had sturdy Octobers. The Nasdaq rose about 4% whereas the S&P 500 was up 8%.
Nonetheless, it’s additionally becoming that on Halloween, sweet maker Hershey is buying and selling close to an all-time excessive and is up almost 25% this yr. However general, there haven’t been too many candy Kisses for buyers this yr: Regardless of the ferocious rally in October, there are much more losers than winners on Wall Avenue in 2022.
Massive techs, industrials and client discretionary shares have been hit exhausting in 2022. Intel, Nike, Salesforce, Microsoft, 3M, Boeing, Disney, Walgreens, House Depot, Cisco and Verizon are all down greater than 25% in 2022. That’s almost half of the Dow shares.
Tech is getting crushed within the S&P 500 too. Fb proprietor Meta Platforms has plunged greater than 70% this yr and is now buying and selling at its lowest degree since January 2016. PayPal, chip big Nvidia and Netflix have all misplaced greater than half their worth as nicely.
However there are another winners in addition to Hershey. Oil shares and well being care corporations are main the market, with Chevron, Merck and Amgen topping the Dow leaders checklist.
Chevron is even buying and selling close to an all-time excessive. So is rival (and former Dow element) Exxon Mobil. Massive Pharma chief Eli Lilly and well being insurers Cigna and Humana are additionally at document highs.
It’s not simply power and well being care shares posting strong features this yr. A number of client staples corporations — corporations that promote meals and drinks — are thriving as nicely. McDonald’s, Pepsi and cereal makers Normal Mills and Publish lately hit document highs.
Additionally within the all-time excessive membership: protection contractors Lockheed Martin and Northrop Grumman, insurers Metlife and Progressive, auto components retailers Autozone and O’Reilly Automotive and wi-fi big T-Cellular.
There’s a saying on Wall Avenue that there’s at all times a bull market someplace. This checklist of well-known, brand-name shares buying and selling at document highs is additional proof of that time.
But the broader market is undeniably struggling this yr because of considerations about inflation and the truth that the Federal Reserve has raised rates of interest considerably to attempt to defeat the scourge of rising costs.
There are rising worries that the Fed was too late to start out preventing inflation and now dangers sending the financial system right into a recession subsequent yr because it appears to be taking part in catch-up with its sequence of aggressive price hikes.
The Fed meets on Wednesday and is predicted to lift rates of interest sharply once more. That assembly comes two days earlier than the October jobs report, which some specialists fear will present much more indicators of inflation because of sturdy wage progress.
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