MARKETS TODAY Nov 4 (Vica Partners) – The S&P 500 up 1.64% as of 11.00 a.m. Eastern. The Dow Jones Industrial Average up 520 points, or 1.61%, to 32,515. The tech based Nasdaq up 1.44%.
The three major stock market indexes all up Friday morning, the 10-year Treasury yield flat at 4.148%, the 2 year Treasury yield flat at 4.677%, and the U.S. Dollar Index (DXY) down at $111.22. -1.52%. Oil prices briskly up with Brent crude $97.90, 3.49%, and US West Texas Intermediate up at $91.77, 4.08%.
What to expect from the US interest rate obsessed equity markets (today we got better news)
Data that shows the U.S. economy isn’t slowing as the central bank tightens policy will test lower stock prices.
U.S. Labor Department’s payroll report showed a rise in the in unemployment rate to 3.7% from last month’s 3.5% and a small rise in earnings.
It also showed average hourly earnings rose 0.4% in October against a forecast of 0.3%, while nonfarm payrolls increased by 261,000 jobs against expectations of 200,000 after rising 263,000 in September. This is the third month in a row of modest hourly earning gains
Momentum company / metal mining industry performance
At the current price of copper, Freeport-McMoRan is highly profitable (see below)
Freeport McMoran Inc. (NYSE, FCX) +11.22% intraday market Friday à 5 days +9.01% à 30 days +15.04% à 90 days 22.34%.
- Octobers Q3 earnings note: Q3 Non-GAAP EPS of $0.26 beats by $0.01, Revenue of $5B (-17.8% Y/Y) beats by $90M.
IMPORTANT TO READ as low interest rates will return
The Federal Reserve will slow the pace and begin to cut interest rates in 2023 to avoid an extended recession. 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.
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 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
