Wall Street Looking to Recover in November

October was quite a tough month for Wall Street, but things are already starting to turn around.  In fact, approaching the end of the month, it was quite apparent that this was the worst month for equity markets in the past two years but by the 31ststocks were already on the rise.

For example, the Dow Jones Industrial Average grew 220 points (0.88 percent), to 25,336.  As a matter of fact, the Dow posted its best two-day rally in nearly three years, with the blue-chip index closing October still down 5.1 percent. In addition, the S&P 500 increased 0.9 percent and the Nasdaq increased by 1.61 percent.

Now we are in the opening trading days of November and it looks like most of the headline risks that drove the markets down in October are going to stick around, at least as fears in the minds of investors. These factors include concerns over trade between the US and China, higher interest rates, and slowing economic growth.  At the same time, investors will also be looking to Apple’s earnings to help boost the tech-heavy index—the Nasdaq—which had its worst month in almost a decade: 9.2 percent.

Another area that is struggling, according to Wall Street, is DowDuPont Inc’s latest moves.  While the company sees costs on the rise in preparation for its upcoming three-way split, they still reported third-quarter profits were up, though still less than 1 percent.  More specifically, the largest chemical maker in the world posted a third-quarter net profit of $535 million. Unfortunately, shareholder profit looks to be down 3 percent (at $497 million) with a diluted earnings-per-share down 34 percent (to 21 cents).

DowDuPont stock has dropped 24 percent since the beginning of the year but was up more than 4 percent (to $56.25) in pre-market trading activity, on Thursday.

Still, net sales are up 10 percent (to $20.1 billion) and sales—across all regions of the three divisions—saw a benefit of 5 percent in volume and in local prices.  However, integration and separation costs for DowDuPont Inc jumped 88 percent (to $666 million), with selling, general, and administrative costs bolstered up 49 percent (to $1.5 billion).

The upcoming split is a quick turnaround from the recent merger of DowDuPont, which, just last year, brought together Dow Chemical Co and DuPont Co.  The spinoff will first see the plastics division (Dow) separating on April 1 with specialty products (DuPont) and agricultural business (Corteva Agriscience) finalizing the split by June 1.

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