Investment Review - October 2024
- The major US stock indices increased in value in September. The Dow Jones Industrial Average was up 1.9%, the S&P 500 rose by 2.0%, and the Nasdaq Composite advanced by 2.7%.
- The US Dollar Index continued its three-month decline, decreasing by 0.9% in September. This index measures the value of the US dollar versus six major foreign currencies. A weaker dollar increases the cost of imports, decreases the price of exports to foreign purchasers, and increases the value of overseas revenues and profits earned by US corporations with international operations.
- For 2024, analysts expect S&P 500 companies to grow earnings by 10.2%, revenues by 5.0% and cash flow by 8.7%. Consensus expectations for 2025 call for continued S&P 500 growth as follows: earnings 14.9%, revenues 5.8% and cash flow 17.2%. Mid- and long-term stock performance correlates well with earnings, revenue, cash flow and expected growth. If the economy changes direction, 2025 expectations are likely to be revised.
Key Investment Statistics
Sources: FactSet, Yardeni Research, Evercore ISI, US Bureau of Labor Statistics, US Bureau of Economic Analysis, The Wall Street Journal
Disclosure: This commentary reflects the opinions of Welch & Forbes based on information that we believe to be reliable. It is intended for informational purposes only, and not to suggest any specific performance or results, nor should it be considered investment, financial, tax or other professional advice. It is not an offer or solicitation.
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