Broker Check
Weekly Recap | October 16, 2023

Weekly Recap | October 16, 2023

October 19, 2023
Weekly Recap

October 9-13, 2023 Recap

Equities Mixed

War News Takes Center Stage
U.S. equities were narrowly mixed last week, with the S&P 500 posting a second straight weekly gain, while Nasdaq stocks snapped a two-week string of gains. Equity markets were initially downbeat but shook off major geopolitical concerns in the middle east.

For the Week…
The S&P 500 rose 0.47%, the Dow Jones Industrial Average gained 0.74%, while the tech-heavy Nasdaq Composite slipped 0.18%. Small cap stocks underperformed with the Russell 2000 slumping 1.47%; while internationally, the MSCI Emerging Markets Index outperformed, up 1.51%.

Consumer Inflation Tops Forecasts
The headline Consumer Price Index (CPI) increased slightly faster than expected in September, rising 0.4% versus 0.3% expected. The annualized year-over-year increase held steady at 3.7%. The core CPI that excludes volatile food and energy items rose 0.3% last month, but from a year ago eased to 4.1% from 4.3%, the slowest annual increase in 24 months.

Weekly Sector Insights
Eight of the 11 S&P 500 sectors posted gains last week, led by Energy (+4.52%), Utilities (+3.61%), and Real Estate (+2.37%). Technology rose the least, up 0.17%, while Consumer Discretionary (-0.68%), Materials (-0.41%), and Communication Services (-0.21%) were the laggards. Despite its haircut, Communication Services (+44.67) remains at the top of the 2023 leaderboard, followed by Technology (+38.95%).

Treasury Yields Decline
Prices on Treasury securities rose last week amid safer-haven buying following the war in the middle east, sending the yield on 10-year Treasury notes to finish Friday at 4.627%, down 0.16% for the week. Gold also advanced amid defensive buying, climbing over $96 (+5.2%) on the week to end Friday at $1,941.50/oz.

The Latest from @CeteraIM

Consumer Sentiment Weakens

Reaction to Past Wars

Producer Prices Rise

Economic Calendar

Monday, October 16
NY Empire State Manufacturing.

Tuesday, October 17
Retail Sales, Industrial Production, Business Inventories, Homebuilder Confidence.

Wednesday, October 18
Mortgage Activity, Housing Starts, Fed Beige Book.

Thursday, October 19
Jobless Claims, Philly Fed Manufacturing, Existing Home Sales, Leading Economic Indicators.

Friday, October 20
No Major Releases.

Mounting interest costs on federal debt is one reason why long-term Treasury yields have risen sharply. Federal debt interest payments as a percentage of Gross Domestic Product (GDP) were only 2.5% in early 2022. As debt and borrowing costs have risen, interest payments have leapt to 3.4% of GDP. The long-term average is 3.1%. The near-term implication could be less political appetite for fiscal stimulus. On the other hand, federal debt interest costs were even higher relative to GDP from 1978 to 2000.

This report is created by Cetera Investment Management LLC. For more insights and information from the team, follow @CeteraIM on Twitter.

About Cetera® Investment Management
Cetera Investment Management LLC is an SEC registered investment adviser owned by Cetera Financial Group®. Cetera Investment Management provides market perspectives, portfolio guidance, model management, and other investment advice to its affiliated broker-dealers, dually registered broker-dealers and registered investment advisers.

About Cetera Financial Group
“Cetera Financial Group” refers to the network of independent retail firms encompassing, among others, Cetera Advisors LLC, Cetera Advisor Networks LLC, Cetera Investment Services LLC (marketed as Cetera Financial Institutions or Cetera Investors), and Cetera Financial Specialists LLC. All firms are members FINRA / SIPC. Located at 655 W. Broadway, 11th Floor, San Diego, CA  92101.

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All economic and performance information is historical and not indicative of future results. Investors cannot directly invest in unmanaged indices. Additional risks are associated with international investing, such as currency fluctuations, political and economic instability, and differences in accounting standards.


The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the NASDAQ. 

The S&P 500 is an index of 500 stocks chosen for market size, liquidity and industry grouping (among other factors) designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe. 

The NASDAQ Composite Index includes all domestic and international based common type stocks listed on The NASDAQ Stock Market. The NASDAQ Composite Index is a broad based index. 

The Russell 2000 Index measures the performance of the small-cap segment of the U.S. equity universe and is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership. 

The Russell 3000 Index measures the performance of the largest 3,000 U.S. companies representing approximately 98% of the investable U.S. equity market. 

The Russell Midcap Index measures the performance of the mid-cap segment of the U.S. equity universe and is a subset of the Russell 1000 Index. It includes approximately 800 of the smallest securities based on a combination of their market cap and current index membership. 

The Bloomberg US Aggregate Bond Index, which was originally called the Lehman Aggregate Bond Index, is a broad based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government–related and corporate debt securities, MBS (agency fixed-rate and hybrid ARM pass-throughs), ABS and CMBS (agency and non-agency) debt securities that are rated at least Baa3 by Moody’s and BBB- by S&P. Taxable municipals, including Build America bonds and a small amount of foreign bonds traded in U.S. markets are also included. Eligible bonds must have at least one year until final maturity, but in practice the index holdings have a fluctuating average life of around 8.25 years. 

The Bloomberg US Corporate High Yield Index measures the USD-denominated, non-investment grade, fixed-rate, taxable corporate bond market. Securities are classified as high yield if the middle rating of Moody's, Fitch, and S&P is Ba1/BB+/BB+ or below, excluding emerging market debt. Payment-in-kind and bonds with predetermined step-up coupon provisions are also included. Eligible securities must have at least one year until final maturity, but in practice the index holdings has a fluctuating average life of around 6.3 years. 

The Bloomberg US Municipal Bond Index covers the USD-denominated long-term tax exempt bond market. The index has four main sectors: state and local general obligation bonds, revenue bonds, insured bonds, and prerefunded bonds. Eligible securities must be rated investment grade (Baa3/BBB- or higher) by Moody’s and S&P and have at least one year until final maturity. 

The MSCI EAFE Index is designed to measure the equity market performance of developed markets (Europe, Australasia, Far East) excluding the U.S. and Canada. The Index is market-capitalization weighted. 

The MSCI Emerging Markets Index is designed to measure equity market performance in global emerging markets. It is a float-adjusted market capitalization index. 

The Bloomberg Commodity Index is a broadly diversified index that measures 22 exchange-traded futures on physical commodities in five groups (energy, agriculture, industrial metals, precious metals, and livestock), which are weighted to account for economic significance and market liquidity. No single commodity can comprise less than 2% or more than 15% of the index; and no group can represent more than 33% of the index.

 The S&P GSCI Crude Oil Index is a sub-index of the S&P GSCI, provides investors with a reliable and publicly available benchmark for investment performance in the crude oil market.

 The S&P GSCI Gold Index, a sub-index of the S&P GSCI, provides investors with a reliable and publicly available benchmark tracking the COMEX gold futures market.

The U.S. Dollar Index is a weighted geometric mean that provides a value measure of the United States dollar relative to a basket of major foreign currencies. The index, often carrying a USDX or DXY moniker, started in March 1973, beginning with a value of the U.S. Dollar Index at 100.000.