Morning Commentary
Yesterday, the market finally broke out of a vice-grip trading range that was more frustrating than ominous. Meanwhile, the wild gyrations continue. This time, there was a sense of urgency that the train was leaving the station, which powered early buying. Some of the individual moves higher were astonishing. Of course, many of these names have been hammered and still remain underwater for the year.
We got rotation out of bonds and equity safe havens, but after breaking the Walls of August, the next big test will be getting back to all-time high levels.
To make that happen, yesterday’s session served as a great template for what leadership should look like: beaten down Industrial names, and perhaps new leadership from Financials.
S&P 500 Index |
+1.30% |
|
Communication Services (XLC) |
+1.70% |
|
Consumer Discretionary (XLY) |
+1.91% |
|
Consumer Staples (XLP) |
-0.62% |
|
Energy (XLE) |
+1.24% |
|
Financials (XLF) |
+2.04% |
|
Health Care (XLV) |
+0.99% |
|
Industrials (XLI) |
+1.80% |
|
Materials (XLB) |
+0.16% |
|
Real Estate (XLRE) |
-0.87% |
|
Technology (XLK) |
+2.09% |
Economic Proxies
Once again, there was another sizeable drawdown of crude inventories. The 4.8 million barrels brings the tally to 60 million since early May. Interestingly, the pop in West Texas Intermediate (WTI) didn’t hold.
Cautionary Tale
Back in July, I cautioned investors about the pending WeWork initial public offering (IPO). Back then, it was reported that the company founder Adam Neumann cashed out of $700 million in stock to invest in real estate and start-ups. It reminded me of the debacle called World Online, which I still say silently that it triggered ‘popping’ of the tech and telecom bubble.
Yesterday, the company’s pre-IPO valuation was sliced to $25 billion from $47 billion a week earlier. Yikes!
Today’s Jobs report, I think, must be good news and should be treated as good news if my guesstimate is correct.
175,000 are worried about goods-producing (dirty fingernail) jobs.
We are hoping for another spike in participation like July:
Today's Session
Non-Farm Payroll
Comments |
Has New York Times Paul Krugman ever been right? On the Economy, the Stock Market, Consumer Confidence, Prices, etc.? Tom Holcomb on 9/6/2019 7:37:34 PM |
Never...and he's gotten worse the more political anger has driven his "opinions." Like Nostradamus angry less-known evil twin. Charles Payne on 9/7/2019 12:42:01 PM |
Tweet |
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3/27/2024 9:32 AM | U-TURN? |
3/26/2024 1:08 PM | Everything Is Up |
3/26/2024 9:42 AM | TAPPED OUT (I HOPE YOU AT LEAST GOT A T-SHIRT) |
3/25/2024 1:33 PM | Not A Mutiny |
3/25/2024 9:35 AM | STAYING THE COURSE…BEYOND TECH |
3/22/2024 12:56 PM | Toll on Americans |
3/22/2024 9:38 AM | A TAD TIRED |
3/21/2024 1:55 PM | Building on Gains |
3/21/2024 9:30 AM | A COMFORTING FED |
3/20/2024 1:33 PM | Pivotal Moment |
3/20/2024 10:00 AM | HERE COMES THE FED |
3/19/2024 1:33 PM | Picking Up Steam |
3/19/2024 9:35 AM | RUMBLINGS IN THE BOND MARKET |
3/18/2024 1:48 PM | Mag 7 is Back |
3/18/2024 9:39 AM | THE PARTY IN SAN JOSE WILL BE LIT |
3/15/2024 1:38 PM | Realtors Settle |
3/15/2024 9:33 AM | AN UNEASY PAUSE |
3/14/2024 1:43 PM | Sticky Inflation |
3/14/2024 9:48 AM | GOING TO A GO-GO |
3/13/2024 2:16 PM | Taking a Breather |
3/13/2024 9:51 AM | ALL SO EPIC |
3/12/2024 1:42 PM | Marching Higher |
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