“Breaking the Streak” – Vista Partners Daily Market Recap 10/12/2018
After a rough week, U.S. stocks began to bounce back as trade closed on Friday. The Nasdaq edged up 2.29% (167.93 points). The S&P 500 increased 1.42% (38.76 points), breaking its six-day streak of losses. Despite a brief drop early in the day, the Dow advanced 1.15% (287.16 points) as it rebounded from a 1300 point loss from the previous two days.
While many of the Dow components made gains today, such as Visa (V) with a 4.73% rise and Walgreens Boots Alliance (WBA) with a 3.67% increase, a few ended the day in the red like JPMorgan’s (JPM) 1.09% loss. Atossa Genetics (ATOS) also ended the day with losses of 3.92%.
After a particularly volatile week, experts pointed to the Federal Reserve, trade fears, and the upcoming elections as possible factors to explain the changes. According to the experts though, this volatility is nothing to fear as October has often been an especially unpredictable month. Some see this volatility as actually providing opportunities for buying. According to Jonathan Golub, a Credit Suisse analyst, “Historically, investing on volatility spikes leads to above average returns in subsequent months.”
Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.
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