By Bill Hornbarger, Chief Investment Officer
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Three Things to Watch
- The U.S. Federal Reserve’s (Fed’s) policy focus has shifted more toward the employment situation as opposed to inflation. This week will offer a prime opportunity to evaluate that strategy with both consumer (CPI) and producer (PPI) price indices released. The more widely followed CPI is expected up 0.1% month over month and 2.3% year over year, with core CPI up 0.2% and 3.2%, respectively. CPI and core CPI peaked at 9.1% and 6.6%, respectively, in 2022.
- The Fed minutes from the September meeting (the first with an interest rate cut in four years) will also be released, and there are 20 Fed speakers scheduled this week. Traders will be looking for additional clues on the path of interest rates.
- Third-quarter earnings season starts this week with the markets at/near all-time highs and expectations for a slower growth rate for S&P 500 earnings.
Three Things to Know
- Third-quarter earnings season starts this week with reports from Delta Airlines, JP Morgan and Wells Fargo. Companies in the S&P 500 are expected to show a 4.7% increase in earnings, which would be the weakest increase in four quarters. (Source: Bloomberg)
- Many phrases exist today that we normalize as just being run-of-the-mill, as it were.
“Run of the mill” is one of them. But it only came into usage in the early 20th Century to say something is “average,” “typical” or “common.” Before this, it was used in industrial factories packing flour in Britain. So, it had a practical application. A certain amount of flour was milled daily because it was a “run of the mill.” (Source: History Defined) - In August, 48% of all U.S. homes for sale had been on the market for at least 60 days, the highest for any August since 2019. The share of homes sitting on the market for 60+ days rose from 43% a year earlier and marked the fifth straight monthly increase. Furthermore, the percentage of homes sitting for at least 30 days jumped to 69% from 64% in 2023. Overall, it took 37 days to find a buyer for an average home, six more days than a year ago. (Source: The Kobeissi Letter, Redfin)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.