MARKETS TODAY Sept 27 (Vica Partners) – The S&P 500 up .39% as of 11:45 a.m. Eastern. The Dow Jones Industrial Average up 46 points, or .16%, to 29,312. The tech based Nasdaq up 0.80%
Wall Street’s main indexes rose for the first time in six sessions on Tuesday, with growth tech based stocks gaining more ground. The dollar extends 20-year highs reached Monday with an uptick in the energy sector as oil prices are up 2.5%.
The 10-year Treasury yield held above 3.82%, highest since April 2010 and the 2-year Treasury note above 4.2%, a 15-year high.
Volatility index (VIX) remains high today
The CBOE Volatility Index (VIX) the short-term market volatility measure remains high at 32 today, its highest rating since mid-June.
Fed Presidents continues weekly speeches this morning
Chicago Fed President Charles Evans said while speaking at a forum in London that the U.S. central bank will need to raise interest rates by at least another percentage point this year but does not see the labor market heading into “recession-like” conditions.
Economic reports out today include durable and capital goods
Durable goods orders as new orders for U.S.-manufactured capital goods increased more than expected in August, suggesting that businesses continues to spend on equipment despite higher interest rates, which indicates the economy I still set for moderate growth.
- Core capital goods orders increase 1.3% in August
- Core capital goods shipments rise 0.3%
- Durable goods orders fall 0.2% on transportation shortfalls
VERY 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 include: iron. Copper and crude oil
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 10-13% 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
