MARKETS TODAY @12.20 PM EST
Sept 16 (Vica Partners) Dow down 1.12%, S&P 500 down 1.40%, Nasdaq down 1.73%
Stocks continue fall on Friday as markets price-in higher “hawkish” Federal Reserve interest rate hikes. This week Fed’s policymakers signaled that they expected their key rate to end 2022 in a range of 3.75 percent to 4.5 percent and then to rise further next year.
Analysts cut Q3 earnings expectations over the last 60 days for every sector in the S&P 500 except energy.
Earnings growth expectations for the S&P 500 stand at an increase of 3.6% for the third quarter, down sharply from expectations of roughly 10% growth at the end of the 2nd Quarter.
FedEx was in the earnings headlines today after the company withdrew its full-year guidance stating that “macroeconomic trends significantly worsened.”
Michigan’s consumer sentiment survey reported better than expected news
The University of Michigan’s consumer sentiment survey reported one-year inflation expectations fell to 4.6% in September, the lowest reading in a year.
Around the markets…
The bond market, the benchmark U.S. 10-year Treasury note held above 3.46%, while the 2-year Treasury rose to 3.9%, the highest level since 2007.
Oil prices are flat Friday mid-day and commodity pricing was in continued decline.
Solid strategy for these type of market days ….
We suggest investing in companies that have solid balance sheets and offer dividends.
Here is a list of some of our A- Tier value courtesy of Vpartners data scientists:
- MRK, UNH, TM, TSLA, C, MUFG, OXY, CTRA, DVN, CVX, XOM, NRG, AMZN, GOOGL, AAPL
Best to continue to cost average buy A-Tier value stocks and resist most of tech and growth stocks where companies have negative margins. Our teams now see a negative 12%-15% valuation correction for speculative stocks.
*** Energy is the Top Performing Sector in S&P 500
