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Morning Commentary

Consumers are Primed & Ready

By Charles Payne, CEO & Principal Analyst
10/14/2020 9:20 AM

Although the market closed lower, you have to look at the internals and see the session was rougher than major equity indices would suggest.  Losers outpaced winners two to one on the New York Stock Exchange and were 50% more on the NASDAQ Composite.   Overall volume was light but skewed negative. 

Market Breadth









52 Week High



52 Week Low



Up Volume



Down Volume



The session wasn’t a disaster, especially on the heels of big moves made this month.  There just was never any leadership, as Communication Services was the lone winning sector on the S&P 500.

S&P 500 Index



Communication Services XLC



Consumer Discretionary XLY



Consumer Staples XLP



Energy XLE



Financials XLF



Health Care XLV



Industrials XLI



Materials XLB



Real Estate XLRE



Technology XLK



Utilities XLU



Hotline Model Portfolio Approach

This morning, we are adding to Industrials in our Hotline Model Portfolio.

Today’s Session

Bank earnings have largely been a yawner again, save for Goldman Sachs (GS), which posted results that are hard to ignore.

Bank Earnings

Goldman Sachs (GS)

PNC Bank (PNC)

Wells Fargo (WFC)

Bank of America (BAC)

CPI informs investing

September Consumer Prices increased 0.2% from August resulting in the lowest read in four months.  I wrote last month in the commentary, and more detailed in Payne’s Perspective, of how investors should use this report to discover investing ideas as much as a gauge on inflation.

United States Inflation Rate MoM

The biggest increase came in used cars and trucks, and on the other end of the spectrum, we were struck by the sharp decline in prices for appliances.



Thank you Charles I like reading you commentary

Edward Fischer on 10/14/2020 11:24:48 AM
Charles, what do you think of the 1.3% COLA that the government is giving to the seniors this coming year?

William Brown on 10/14/2020 1:47:07 PM
I would say its a drop in the bucket but they have gotten a lot less in the past.  The CPI for this is an antiquated way to determine such payments.  Long overdue for overhaul.  CP

Charles Payne on 10/14/2020 1:49:49 PM

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