Investors Say Good Riddance to Spooky October on Wall Street
*By Carlo Versano*
October's reputation as a volatile month for stocks will remain unbroken ー at least for now.
Despite strong gains on both Tuesday and Wednesday, the S&P 500 will close its worst October since the financial crisis a decade ago and its worst month in eight years. The gains in equities from a summer rally have been wiped out across just about every slice of the market.
A witch's brew of mounting concerns over borrowing costs, global growth, and tariffs have collided head-on with the run-up to a critical U.S. election ー which by itself would have led to a spike in volatility, according to Adam Sarhan, the CEO of 50 Park Investments.
"This midterm election holds a lot of weight with the market," he said. "Investors don't like uncertainty."
October's losses were especially apparent in light of the preceding rally, which had gone on more or less unimpeded for two years after the election of Donald President Trump. "I always like to step back and put it in perspective," Sarhan said.
Some analysts point to a valuation metric that argues stocks are still under-valued ー especially given low interest rates ー and suggest markets will continue to go higher after this correction. But technical analysts who study charts might see the pullback as an indication that we're in a late-stage bull market, with volatility suggestive of a "big top that's forming."
Indeed, the volatility in the markets, as measured by the VIX index, is the indicator from the past month that is most conspicuous to Sarhan. "The big thing that changed in October is that we finally had fear pick up," he said.
As investors look to the final two months of the year ー regardless of the outcome of the election ー Sarhan said he would take a technician's approach: if stocks touch the lows they hit last February (an outlier month that wiped out stocks in the midst of the bull run), he expects they will go much lower. Conversely, if stocks break through the highs reached in September, the bull market could get back on track.
"Until either one of those are broken, we have to expect this large sideways action to continue."
He added: "Stocks don't go up forever."
For full interview [click here](https://cheddar.com/videos/a-scary-october-for-markets).
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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