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September was another rough month for investors as the Federal Reserve kept pushing interest rates higher. But the focus is likely to change in October as major companies like Apple report earnings.
The S&P 500 slid 9.3 percent in September, its biggest monthly drop since the pandemic hammered markets in March 2020. The index also registered a 5.3 percent decline for the June-September period, its straight negative quarter. That’s the longest negative streak since the financial crisis between late 2007 and early 2009.
Every major sector declined last month, led by interest-rate sensitive groups like real estate and technology.
More than half the S&P 500 will report earnings this month, including nine of the index’s 10 biggest companies. Below are some of the more actively traded names with some points investors may be watching:
The S&P 500 ended last week at its lowest level since November 2020. While the index has declined sharply, it may not be giving many signs of stabilizing.
One potentially bearish pattern last week was Wednesday’s brief rebound above 3720. Prices had bounced there in July, so their inability to reclaim that level could suggest old support has become new resistance.
The next price area where chart watchers could next anticipate support is the pre-pandemic high from February 2020 around 3393.
Almost 95 percent of the S&P 500’s members declined in September. Below are some of the big movers and the reasons why.
| Top Decliners in September | ||
| FedEx (FDX) | -30% | Warns of slower demand as inflation hits profitability. |
| VF (VFC) | -28% | Cuts guidance as weak demand hurts profits. |
| Lumen Technologies (LUMN) | -27% | Higher interest rates reduced the appeal of its dividends. |
| Ford Motor (F) | -27% | The automaker warned of supply-chain issues hurting profits. |
| Charter Communications (CHTR) | -27% | Weakness in the broadband market is weighed on the cable company. |
| Top Gainers in September | ||
| Biogen (BIIB) | +37% | The biotech’s Lecanemab compound showed progress against Alzheimer’s disease. |
| Regeneron Pharmaceuticals (REGN) | +19% | The biotech released positive data for its eye drug Eylea. |
| Twitter (TWTR) | +13% | The social-media company gained on hopes of a legal settlement with Elon Musk. |
| Eli Lilly (LLY) | +7.3% | Investors see potential in the company’s pipeline of weight-loss and Alzheimer’s drugs |
| Bristol-Myers Squibb (BMY) | +5.5% | The drugmaker gained after its Sotyktu psoriasis treatment was approved. |
The table below shows sector performance last month.
| Healthcare | -2.9% |
| Financials | -8.1% |
| Consumer Discretionary | -8.4% |
| Consumer Staples | -8.7% |
| S&P 500 | -9.3% |
| Materials | -9.8% |
| Energy | -11% |
| Industrials | -11% |
| Utilities | -12% |
| Communications | -12% |
| Technology | -12% |
| Real Estate | -14% |
Below are some noteworthy commentaries.
| Product | Current Month | Expiration | Next Month | 1-Mon% |
| S&P 500 E-Mini (@ES) | ESZ22 (Dec) | 12/16/22 | ESH23 | -9.4% |
| Nasdaq-100 E-Mini (@NQ) | NQZ22 (Dec) | 12/16/22 | NQH23 | -11% |
| Dow Jones E-Mini (@YM) | YMZ22 (Dec) | 12/16/22 | YMH23 | -8.9% |
| Russell 2000 E-Mini (@RTY) | RTYZ22 (Dec) | 12/16/22 | RTYH23 | -9.8% |
| Date | Event | What to Watch For |
| Fri, 10/7 | Employment report for September | Non-farm payroll changes and revisions, unemployment, wage inflation. |
| Wed, 10/12 | Federal Reserve minutes | Details of the last meeting could give clues on monetary policy. |
| Wed 10/12, Thu 10/13 | Inflation reports for September | Producer prices are due October 12, followed by consumer prices on October 13. |
| Fri 10/14 | Earnings begin | Earnings season begins as major banks like JPMorgan Chase and Citigroup report. |
| 10/25 week | Big tech earnings | Major technology stocks like Apple (AAPL), Microsoft (MSFT), Amazon.com (AMZN) and Advanced Micro Devices (AMD) are projected to announce results. |
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