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September 17th Market Overview
September 17th Market Overview (no fluff)
J.L. Bernstein
September 17, 2024
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Happy Tuesday, everyone. We're in for an exciting day as the Federal Reserve's interest rate decision looms large.
The markets are mixed, with the S&P 500 touching a new high before settling slightly lower. Intel is making waves after announcing plans to create a separate foundry business, while retail sales surprised to the upside in August.
Energy and financial stocks are leading the today’s push, but tech is taking a bit of a breather.
Lets dig in…
Executive Summary
The S&P 500 is sitting flat after hitting a record high of 5,670.81 as the marekt await the Federal Reserve’s key interest rate decision.
Retail sales showed an unexpected increase of 0.1% in August, demonstrating consumer resilience amidst economic concerns.
$INTC shares surged nearly 8% after announcing plans to create a separate foundry business and receiving up to $3 billion in CHIPS Act funding.
Market Overview
The S&P 500 was little changed today, briefly touching an all-time high earlier in the session before pulling back slightly to 5,625.19, down 0.1%. The Nasdaq was unchanged, while the Dow slipped 61 points, or 0.1%, after also reaching a fresh record high. Investors are on standby for the Fed’s anticipated rate cut decision Wednesday afternoon, with a 63% probability of a 50 basis point reduction currently priced in by traders.
Key Market Drivers
Federal Reserve Anticipation: The market is largely betting on a significant rate cut by the Fed, which could reshape earnings perspectives against a backdrop of high inflation and borrowing costs.
Retail Sales Data: A surprise uptick in August retail sales has instilled confidence among investors, suggesting consumer resilience that may offset prior economic concerns.
Tech Sector Movement: Major tech stocks like $INTC are reacting significantly to corporate restructuring news and funding aid, contributing to overall market stability.
Stock Spotlight
$INTC: Shares jumped nearly 8% after announcing plans to make its foundry business a subsidiary and receiving up to $3 billion in CHIPS Act funding.
$GCI: Gannett shares soared 16% after Citi upgraded the newspaper stock to a neutral rating from sell.
$ACN: Accenture shares dropped 4% following a report that the company will move the bulk of its promotions to June from December.
Other Magnificent 7 Updates
$MSFT: Shares were up about 2% in the premarket after increasing its quarterly dividend by 10.7% and approving a new $60 billion share repurchase program.
Other Notable Company News
$TDOC: Teladoc shares surged 12%, putting the stock on track for its best day in more than a year and its sixth straight day of gains.
$HPE: Hewlett Packard Enterprise stock jumped 6% after Bank of America upgraded it to a buy rating from neutral.
Sector Watch
Sector | Symbol | % Change |
|---|---|---|
Energy | XLE | +1.31% |
Consumer Discretionary | XLY | +0.51% |
Industrials | XLI | +0.38% |
Financials | XLF | +0.32% |
Communication Services | XLC | +0.08% |
Materials | XLB | +0.04% |
Technology | XLT | -0.26% |
Utilities | XLU | -0.18% |
Real Estate | XLR | -0.59% |
Consumer Staples | XLP | -0.94% |
Healthcare | XLV | -1.31% |
Bond Market
The yield on the 10-year Treasury note was little changed Tuesday, hovering around 4.10%.
Policy Watch
All eyes are on the Federal Reserve as it prepares to announce its interest rate decision Wednesday afternoon. While a rate cut is widely expected, the debate centers on whether the central bank will opt for a 25 or 50 basis point reduction. The outcome could have significant implications.
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- JB
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Note: This newsletter is intended for informational purposes only.