MARKETS TODAY Oct 4 (Vica Partners) – The S&P 500 up 2.89% as of 11:19 a.m. Eastern. The Dow Jones Industrial Average up 757 points, or 2.53%, to 30, 240. The tech based Nasdaq up 3.37%
The Nasdaq leads Wall Street higher on Tuesday as growth and technology stocks up roughly 1.5% to 6.0% on the back of a stronger than expected August U.S. job openings reports with largest drop in close to 3 years
Oil prices continue to rally back with Brent crude +3.42% and US West Texas Intermediate crude +3.36. Conversely, the 10 Year Treasury note dropping at 3.619% and U.S. Dollar Index (DXY) off at $110.45.
August U.S. job openings report better than expected and high levels as demand for labor remains strong
The number of job openings decreased to 10.1 million on the last business day of August. Hires and total separations were little changed at 6.3 million and 6.0 million. Economists consensus had forecast 10.8 million vacancies.
IMPORTANT TO READ as we forecast that inflation will turn into deflation
The Federal Reserve will be forced to cut interest rates in 2023 if a deep recession occurs as the cure for inflation is not just raising rates. As we 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 continue to drop “even with production shortages” which include: iron. Copper and crude oil. Upside is coming!
Solid strategy for these type of market days ….
We suggest investing in companies that have solid balance sheets and offer dividends.
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 7-10% valuation correction for speculative stocks. DON’T try to time market lows!
*** 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 will regain strength shortly
