Money
Let’s get back to basics about the stock market
If you watch the news – and who doesn’t here at Ticker News – you’ll notice there is a lot of discussion about the stock market.
Whether a company price has moved up or down, a new feature has been announced, or if sales of a particular product have exceeded expectations, can have an impact.
So, what does it all mean? We’re here to help you get your head around it all.
WHAT IS THE STOCK MARKET?
The stock market is a place for people (typically known as investors) to buy and sell individual company shares, funds and other financial products.
Changes in share prices allow investors to buy or sell financial products they are interested in owning.
They allow for investors to trade owning part of a public company for capital.
Stock markets are regulated, and have to follow a defined set of rules and procedures, that are set out by regulators in each jurisdiction such as the Securities and Exchange Commission (SEC) in the United States, the Financial Conduct Authority (FCA) in the United Kingdom, and the Securities and Futures Commission (SFC) in Hong Kong, to name a few.
SO, YOU WANT TO BECOME AN INVESTOR?
Now that you have a grasp of what the stock market is, and how it broadly works, you’ve decided to take the next step and buy some shares (also known as equity) in a company – congratulations.
That choice is up to you, as there are thousands of companies available on each exchange to buy into.
But before you can buy a company that is listed on a stock exchange, you have to choose your broker – or the third-party that will allow you to buy and sell shares on the stock market. The broker is the one who will be able to grant you access to all the available companies.
And with thousands of brokers out there, how do you know who to choose?
Several factors come into play: access to markets right across the world, reputation (so you know they will be around during the good and bad times of the market), fees (as you don’t want to be paying too much for the service to buy and sell your stocks), speed (to enact a purchase and sell) and technological advancements.
And if you’re a person who likes to read reviews or follow guides from others about who to choose, winning the Best Online Broker Award five years in a row is a strong endorsement for Interactive Brokers, beating the likes of Robinhood, Vanguard and Charles Schwab.
CAN IT BE RISKY?
Just like any form of investment, there is a chance that your capital can increase or decrease, and investors even need to take into consideration the possibility of losing all their invested money.
Investments in some companies are said to be riskier than in others.
This could have to do with how established a company is, how it is managed, how well it can raise money to expand, how successful their products are to the public or how nimble it is.
What’s the best thing you can do before outlaying any capital – research, research, research. And with a wealth of information at your fingertips, you can feel secure in the knowledge of the company – or companies – you are investing in.
Do your own research.
Money
Wall Street hits record highs on low inflation
Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision
Wall Street hits record highs on cool inflation and strong earnings ahead of key Federal Reserve interest rate decision
– U.S. stocks rose to record highs on Friday due to lower inflation and strong corporate earnings.
– Key earnings reports from major companies are expected next week, influencing market trends.
The Labor Department reported that the Consumer Price Index was slightly cooler than analysts’ predictions, easing concerns about inflation impacts from tariffs. This development suggests a likely interest rate cut by the Federal Reserve at its upcoming meeting.
Ryan Detrick from Carson Group noted the positive inflation news may facilitate forthcoming Fed rate cuts. Despite the ongoing government shutdown affecting data releases, this CPI report provided much-needed clarity.
Earnings reports are continuing, with 143 S&P 500 companies having reported results. Growth expectations for third-quarter earnings have risen to 10.4%. Detrick indicated a strong opening to the earnings season with a significant percentage of companies exceeding expectations.
This coming week, key earnings will be reported from Meta Platforms, Microsoft, Alphabet, Amazon, and Apple, alongside industrial companies like Caterpillar and Boeing.
The Dow rose 472.51 points to 47,207.12. The S&P 500 increased by 53.25 points to 6,791.69, while the Nasdaq gained 263.07 points, reaching 23,204.87.
Alphabet gained 2.7% following a deal expansion with Anthropic. Coinbase saw a 9.8% increase from a JPMorgan upgrade. In contrast, Deckers Outdoor’s shares fell 15.2% after lowering sales forecasts.
Market Trends
Advancing stocks on the NYSE outnumbered decliners by 2.18 to 1. The S&P 500 had 34 new highs, with the Nasdaq recording 124.
Trading volume was 19.04 billion shares, lower than the average of the past 20 days.
Money
US stocks face tests from Tesla, Netflix earnings
US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data
US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data
– Earnings reports from Tesla and Netflix might affect U.S. stock performance next week amid high inflation concerns.
– Increased market volatility arises from U.S.-China trade tensions and fewer S&P 500 stocks in an uptrend.
The S&P 500 entered its fourth year of growth amidst these fluctuations, having previously experienced a period of calm. Experts suggest market risks are intensifying as valuations reach peak levels.
Market Volatility
Concerns regarding U.S.-China trade relations escalated last week when the U.S. threatened to raise tariffs by November 1 over China’s rare-earth export policies. President Donald Trump is scheduled to meet with President Xi Jinping in two weeks to discuss these issues.
Despite these challenges, major stock indexes gained ground over the week, with the S&P 500 up 13.3% year-to-date. However, a noticeable decline in the number of S&P 500 stocks in an uptrend raises caution among investors about underlying market weaknesses.
The upcoming third-quarter earnings will be closely monitored, especially as the government shutdown halts economic data releases. Companies like Procter & Gamble, Coca-Cola, RTX, and IBM are due to report. The delayed U.S. consumer price index is also expected to provide crucial insights ahead of the Federal Reserve’s monetary policy meeting on October 28-29.
Money
Australia’s unemployment rate rises to 4.5 per cent
Australia’s unemployment rate rises to 4.5 per cent in September, prompting calls for potential Reserve Bank interest rate cut
Australia’s unemployment rate rises to 4.5 per cent in September, prompting calls for potential Reserve Bank interest rate cut
– Australia’s unemployment rate rose to 4.5% in September, the highest since November 2021.
– Economists note a cooling labour market, with fewer job ads and increased participation rate amid rising living costs.
Economists suggest that the Reserve Bank should consider another interest rate cut next month. BetaShares chief economist David Bassanese noted a slowdown in employment demand as the labour market struggles to accommodate job seekers.
The number of officially unemployed rose by 33,900 in September, while the employment count increased by 14,900. The labour force expanded by 48,800 people, resulting in a participation rate rise of 0.1 percentage points to 67 per cent, returning to July levels.
In trend terms, the unemployment rate remained steady at 4.3 per cent.
Labour Market
BDO chief economist Anders Magnusson stated that while the unemployment rate has increased, the labour market is cooling, not collapsing.
He pointed out that the 14,900 jobs added in September were slightly below the average for the past year.
A growing participation rate indicates that rising living costs are prompting more individuals to seek employment. Magnusson said the release confirms a gradual cooling of the labour market that keeps the Reserve Bank on track without necessitating immediate action.
He added that hiring activity is slowing, signalled by a 3.3 per cent drop in job advertisements in September, the largest monthly decrease since February 2024.
Despite this, he does not foresee a rate cut in November.
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