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Afternoon Note

What Downturn?

By Charles Payne, CEO & Principal Analyst
10/9/2020 1:10 PM

It almost seems like the September downturn didn’t happen.  The major indices keep moving higher.  At the current pace, Nasdaq is up 3% for the week, with the S&P 500 closely behind, and the Dow around 2.7%. Investors continue to be optimistic that there will be some form of a stimulus package soon. The latest from NEC Director, Larry Kudlow, is President Trump has agreed to a revised stimulus package of $1.8 trillion and that Treasury Secretary Mnuchin will speak with House Speaker Pelosi this afternoon.

Risk on is back with Technology and Consumer Discretionary leading the way higher, and all but one S&P 500 sectors are in the green.

Energy is the laggard today after yesterday’s big rise.  Hurricane Delta in the Gulf Coast has caused 183 offshore platforms to be vacated and stop production of 1.67 million barrels per day, levels not seen since Katrina in 2005.  That coupled with outages in Europe’s North Sea, and labor disputes between Lederne, Norwegian Oil Company, and the Norwegian Oil and Gas Association is adding pressure to the commodity.  WTI is currently up over 11% for the week, despite being down on the day to $40.79.

S&P 500 Index

+0.95%

 

Communication Services (XLC)

+0.65%

 

Consumer Discretionary (XLY)

+1.22%

 

Consumer Staples (XLP)

+1.09%

 

Energy (XLE)

 

-0.54%

Financials (XLF)

+0.36%

 

Health Care (XLV)

+0.95%

 

Industrials (XLI)

+0.85%

 

Materials (XLB)

+0.91%

 

Real Estate (XLRE)

+0.03%

 

Technology (XLK)

+1.34%

 

Utilities (XLU)

+0.02%

 

 

 

Breadth is positive and advancers lead decliners by at least 2-1.  The number of stocks hitting new 52-week highs is crushing the lows. 

Have a great weekend.  Be safe and stay well.

 

 


Comments
Your insight and calm demeanor as well as solid evaluations are well received. Nothing crazy or wild eyed!

Les Gisler on 10/9/2020 2:51:19 PM
I have watched your show each day for a long time. Somehow I missed the mention of your blog on wstreet.com until today. I'm glad I saw it and look forward to reading your insights daily.

Mark Russell on 10/9/2020 2:51:49 PM
Charles, thank you for telling us the truth. I watch you all the time on FBN.
I'M 69 and my husband 79 Retired Navy. We are new to the Stock Market but our portfolio has increased about 16%. Definitely much better than our CD's from our Federal Credit Union. I am a Oxford Club member following Alexander Green. I can't do everything he suggests, but even if I only can purchase 1-6 shares. God Bless you Charles and stay safe.

Debra Jeffrey on 10/9/2020 3:00:38 PM
i can not explain why i have been so slow to sign up for this informative sight. Have enjoyed your show since the beginning. WILL CERTAINLY TAKE ADVANTAGE OF YOUR KNOWLEDGE AND ADVICE. THANK YOU

jon c genisio on 10/9/2020 3:19:58 PM
Love your comments

Carol on 10/9/2020 5:16:31 PM
 

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