The week 24.10.-28.10.2022

For the second week in a row, the S&P 500 posted strong gains. Profit margins are still declining as we approach the peak of the quarterly earnings season, with the energy industry being a significant exception. According to FactSet, the average margin for S&P 500 businesses is anticipated to be about 12% for the third quarter. If that number holds true by the time all quarterly reports are made public, it will be the fifth consecutive quarter in which profit margins have decreased.
After posting marginally negative results in the first two quarters of 2022, US economic growth turned positive in the third quarter. In the most recent period, GDP increased at an annual pace of 2.6%, exceeding the expectations of the majority of experts and allaying worries about the likelihood of a protracted recession.
The S&P 500 closed the week strongly with 3.70%, but is still down 18.36% year-to-date. ONE-SIGNAL is continuing strong and posted gains of 66.37% and 42.38% year-to-date.