MARKETS TODAY Nov 11 (Vica Partners) – The S&P 500 up +0.92% as of 4.00 p.m. Eastern. The Dow Jones Industrial Average up 32 points, or +0.10%, to 33,748. The tech based Nasdaq up +1.88%.
Stocks up during Friday trading session as all three major stock market indexes finished positive territory, the 10-year Treasury yield down at 3.811%, -0.331%, the 2 year Treasury yield down at 4.33%, -0.298% and the U.S. Dollar Index (DXY) down at $106.37,-1.70%. Oil prices climbing with Brent crude $95.97, +2.46%, and US West Texas Intermediate flat at $88.96, +2.88%.
The Dow Jones Industrial Average was up 0.10% today
The best performing sectors were the Materials and Energy sectors, up 3.02% and 2.96%
Pricing data in today
The University of Michigan’s preliminary survey of inflation expectations on Friday showed price rising by 5.1% over the next year and 3% annually over the next five-to-10 years.
However, this week… the Consumer Price Index data showed inflation at its lowest annual increase since January and all under Economist forecasts.
Keep in mind that the stock market typically performs well in November…
The stock market typically performs well in November… November is tied with April for being the second-best month of the year, with the Standard & Poor’s 500 rising 1.5% on average during the month since 1950. Election Data over the past 78 years shows that party control over either chamber has relatively little to do with long-term changes in the broad S&P 500 stock index
Vica Momentum Stock Report
Vica Momentum Stocks Report: Nine Energy Service Inc NYSE (NINE) (Grade A+) 50 Day Average +208.52%, 100 Day Average +252.43%, 200 Day Average +665.04%, YTD +841%.
Nine Energy Service, Inc. provides onshore completion and production services to unconventional oil and gas resource development. The company operates primarily in the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus, Utica and throughout Canada. Nine Energy Service, Inc. is headquartered in Houston, Texas.
IMPORTANT TO READ: Low interest rates will return!
The Federal Reserve gave guidance that back in August of 2022 that they would raise rates to 4% and have. Rate adjustments will drive down inflation and slow the pace of the economy. Company earnings will remain mixed with stronger support for Communication services, Consumer staples, Energy, Financials and Health care. As these sectors tend to perform well during recessions
Following 2022 we expect the Central Bank to begin to cut interest rates in late Q2 of 2023 to avoid an extended recession. As the cure for inflation is not just raising rates. Vica analysts see a significant policy change coming by late spring of 2023 with Powell reversing direction… just look at 12 month declining lower commodity pricing and new reports on rising retail inventories.
Yearly commodity prices will rise “as there are still production shortages” which include: iron, copper and crude oil. Upside will continue!
Solid strategy for these type of market days ….
We suggest investing in companies that have solid balance sheets and offer dividends.
Look to Communication services, Consumer staples, Energy, Financials and Health care as these sectors tend to perform well during recessions
Best to continue to cost average buy value stocks and resist most all tech and growth stocks where companies have negative margins. Our Teams forecast a negative 6-8% valuation correction for speculative stocks. DON’T try to time market lows!
*** Watch for our emerging 30/ 60/ 90 day Sector and leading company watchlist’s
*** Look to Index ETF’s like SPY to outperform stocks and most managed funds
*** Energy is the Top Performing Sector in S&P 500 Year to Date and is already regaining strength
*** Banks will profit from higher interest rates on new loans and other products which will offset defaults
