Thursday will mark the 30th anniversary of Black Monday when the stock market lost almost 25% of its value in one day. Could the 1987 crash happen again? Conditions are very different today than they were in the days leading up to the 1987 crash. The stock market is on a much stronger fundamental foundation today, making another crash extremely unlikely. The latest rally has not been nearly as steep as 1985-1987, interest rates are much lower today, and sentiment is not as frothy. (LPL Research)
Earnings season is off to a good start, though early stats are a bit misleading. The beat rates for both earnings and revenue are very strong so far, both at over 80%. Since October 1, energy has produced the most upside to third quarter estimates, while financials have produced the most downside. This week 55 S&P 500 companies will report. (LPL Research)
Nordstrom has suspended attempts to take the U.S. department store private because of difficulties in arranging debt financing. (Reuters)
Drive-in restaurant chain Sonic reported quarterly profits of 45 cents per share, beating estimates by 2 cents. Same-restaurant sales declined due to the impact of Hurricane Harvey. (CNBC)
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.