Market Commentary — November 1, 2021

Stocks hit new highs last week during the busiest week of the third-quarter earnings season. Consumer Discretionary stocks were the biggest winners in the S&P 500, boosted by a jump on Tesla shares on news that Hertz was buying 100,000 EVs.

Supply chain issues remain an issue as both Amazon and Apple report lower growth forecasts due to labor and input shortages. Economic signals remain mixed due to the impact of supply chain issues on inflation. Evidence of slowing growth helped drive a retreat in bond yields.

While there was progress on the Infrastructure Bill early in the week, late-week setbacks make its final outcome uncertain.

In ETF news, Roundhill’s Metaverse ETF (META) saw an inflow boost after Facebook announced it was changing its name to Meta Platforms. The not yet launched Short ARKK ETF will be changing its name to the Tuttle Capital Short Innovation ETF but keeping the ticker SARK.

As for the market outlook for the rest of the year, LPL’s Ryan Detrick predicts seasonal tailwinds, improving market internals, and clear signs of a delta variant peak will continue to propel equity returns through the end of the year.

Sounds good to us. Have a great week!

Jane Edmondson
CEO and Co-Founder

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EQM Indexes LLC is a woman-owned firm dedicated to creating and supporting innovative indexes that track growth industries and emerging investment themes. Co-founded by Jane Edmondson, a former Institutional Portfolio Manager with more than 25 years in the investment industry.

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