S&P 500 and Gold Tumble Lower at the End of October

Gold and stocks were having another great month until the last day, when the S&P 500 crashed and closed October lower, while XAU fell $60. However, this doesn’t change the trend for both markets, and they will likely resume the bullish trend in November again, given the strong earnings from Apple and Amazon which came after the close.

Today was a challenging day for US financial markets, which closed at their lowest levels. Several major companies took significant hits, with Nvidia and Microsoft down 4.5% and 6%, respectively. Although yesterday signaled potential weakness after initial gains faded and closed lower, the major US indices had been on track for six straight months of gains, rising in 11 out of the last 12 months.

S&P 500 Chart Daily – Sellers Testing the 50 SMA

However, strong selling pressure just before today’s open erased the monthly gains and more. Following the close, Amazon’s earnings report revealed substantial revenue and profit growth, highlighting the resilience of US consumers, reflected recently in robust retail sales and spending data. This positive performance lifted Amazon’s stock by more than $10 to $198, marking its highest price in three months.

Closing Changes for Main US Indices

• S&P 500 dropped by 108 points, or about 1.9%.
• Nasdaq Composite led declines with a fall of 2.8%.
• Russell 2000 slid by 1.2%.
• Dow Jones Industrial Average (DJIA) dipped 0.8%.
• Toronto TSX Composite also dropped by 1.3%.

Amazon’s Q3 Earnings Report brought notable upside surprises:

• Earnings per share (EPS) came in at $1.43, beating the estimate of $1.14.
• Net income surged to $15.3 billion, far surpassing the $12.24 billion expected.
• Sales reached $158.9 billion, ahead of the anticipated $157.2 billion.
• Amazon projects Q4 net sales between $181.5 billion and $188.5 billion, hinting at sustained consumer demand heading into the holiday season.

Apple’s Q3 Earnings Report provided strong sales data with some mixed results:

• Adjusted EPS stood at $1.64, slightly above the $1.60 expected.
• Unadjusted EPS, impacted by a one-time EU charge, was $0.97.
• Net sales hit $94.93 billion, surpassing estimates of $94.58 billion and showing a 6% increase year-over-year.
• iPhone net sales reached $46.22 billion, exceeding the $45.47 billion projected.

S&P 500 Live Chart