MARKETS TODAY Oct 19 (Vica Partners) – The S&P 500 was down 0.67% as of 4.00 p.m. Eastern. The Dow Jones Industrial Average was down 100 points, or 0.33%, to 30,424. The tech based Nasdaq down 0.85%.
Stocks struggled throughout the session, the 10-year Treasury higher with a yield at 4.142% a 14 year high. U.S. Dollar Index (DXY) flat to $112.98. Oil prices sharply up with Brent crude $92.41 and US West Texas Intermediate $85.98.
Netflix posted better-than-expected results
Netflix (NFLX) posted better-than-expected results on the top and bottom lines and reported the addition of 2.41 million net global subscribers, more than doubling the adds the company had projected a quarter ago and ending the session up 13.09%.
Housing starts, a measure of new residential constructions, dropped 8.1% in September. Not a bad sign!
Housing Starts for the month of September came in lower than expectations, with 1.44 million seasonally adjusted, annualized starts verses 1.47 million expected. It’s a drop from the previous month’s downwardly revised 1.56 million, but higher than the July low of 1.38 million.
IMPORTANT TO READ as low interest rates will return
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 will rise “as there are 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.
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 5-7% valuation correction for speculative stocks. DON’T try to time market lows!
*** Watch for our emerging 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 will regain strength shortly
*** Banks will profit from higher interest rates on new loans and other products
