Morning Commentary
Yesterday, the spotlight shifted to other parts of the market, which was refreshing. And banks lend Financials (XLF) for a change. The market finished lower, but I’m encouraged it didn’t collapse without growth leadership.
Consumer Staples (XLP) continues to shape up as an intriguing sector – we are considering overweighting the sector.
Big banks caught upgrades before the opening bell.
Breadth & Style
There was lots of green on the screen as the smaller boxes beamed, but the larger boxes were hues of red.
Large-cap growth continues to outperform. But mid-cap stocks are making a stealthy move. It's time to spy non-tech.
Tripped Up
After the close, two “Magnificent Seven Stocks” (Microsoft (MSFT) & Google (GOOG)) posted financial results along with Artifical Intelligence (AI) darling Advanced Micro Devices (AMD). The numbers were fine, but so much was already built into the names that the initial reaction would always be lower. The longer these names linger, the more time investors have to study the disconnect between their earnings growth and share of the S&P 500 (see above).
Its Fed Day
The Fed will hold, but Powell will speak in March 2024, and sparks may fly. Meanwhile, all bets are off until then.
Today’s Session
Lots of data this morning including the ADP Jobs Report which came in at 107,000 against consensus of 150,000.
While this isn’t a harbinger for the BLS number that comes out on Friday, there are similarities in trends. Both are moving lower, and I suspect both will reflect slower wage gains.
Speaking of which, the Fourth Quarter Employment Cost Index came in at 0.9% against consensus of 1.0%.
Some call this a soft landing but I’m not sure because the pace is quickening.
The QRA schedule is out. It’s not moving markets right now; however, it all indicates next week’s auctions are going to take the center stage.
All eyes for the FOMC wrap-up and Powell Q&A session. For the stock market the question is, will investors buy stocks outside mega cap names or move to the sidelines and cool their heels?
For the bond market, will the ten-year yield remain above 4.00%?
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7/26/2024 1:36 PM | Friday Recovery |
7/26/2024 9:29 AM | WRAPPED AROUND YOUR FINGER |
7/25/2024 12:58 PM | A Look at GDP |
7/25/2024 9:57 AM | TURNING THE PAGE ON RESOLVE |
7/24/2024 1:49 PM | Vulnerable Market |
7/24/2024 9:47 AM | Mega Misses |
7/23/2024 1:04 PM | Lay Summer Session |
7/23/2024 9:25 AM | MOST EXPANSIVE BREADTH = GREATER OPTIMISM |
7/22/2024 1:23 PM | Rebounding |
7/22/2024 9:47 AM | WILL THE HUNT FOR VALUE CONTINUE? |
7/19/2024 1:32 PM | Under Pressure |
7/19/2024 9:56 AM | STAR FOR ONLY A WEEK? |
7/18/2024 1:30 PM | All Eyes on Netflix |
7/18/2024 10:18 AM | BIG BETS ON TRUMP TRADE |
7/17/2024 1:37 PM | Technology Troubles |
7/17/2024 9:59 AM | EMPHATIC! |
7/16/2024 12:44 PM | AI Drifting Lower |
7/16/2024 9:52 AM | NEW KIND OF WINNING |
7/15/2024 1:32 PM | Small Caps On The Move |
7/15/2024 9:50 AM | FULL SPEED AHEAD |
7/12/2024 12:56 PM | Intriguing Small Caps |
7/12/2024 9:48 AM | IT’S GOOD TO BE THE KING |
7/11/2024 1:25 PM | Equal Weight Comeback? |
7/11/2024 9:42 AM | CALLING ALL STOCKS |
7/10/2024 1:15 PM | Rally Broadens |
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