- Pivot & Flow
- Posts
- September 20th Market Overview
September 20th Market Overview
September 20th Market Overview (no fluff)
J.L. Bernstein
September 20, 2024
In partnership with
Happy Friday, everyone.
A little wishy washy today, I think that is expected after such a big move. Im happy to see the late day/afternoon session recovery. Ideally we see a healthy consolidation next week coming off this momentum.
A personal ask from me - each click on today’s sponsor buys me a sip of coffee and keeps this free brief rolling every market session.
Lets dig in…
Executive Summary
Dow hovers near 42,000, heading for a winning week after Fed’s half-point rate cut
FedEx shares plummet on earnings miss and lowered guidance
S&P 500 earnings projected to grow 4.6% in Q3, expanding for a fifth straight quarter
Market Overview
We’re seeing mixed performance in the major indices today. The Dow is inching up 0.05%, while the S&P 500 and Nasdaq are both pulling back near 0.2%. Despite today’s slight retreat, all three major averages are on pace for weekly gains, with the S&P 500 up 1.3% and both the Dow and Nasdaq up 1.5% for the week.
Key Market Drivers
Federal Reserve’s 50 basis point rate cut and officials’ comments on inflation
Mixed earnings reports and corporate guidance
Varied sector performance, with Utilities outperforming while Energy and Materials lag
Stock Spotlight
$FDX: FedEx shares tumbled over 13% after reporting a steep quarterly earnings drop and lowering its full-year revenue forecast.
$NKE: Nike jumped 5.8% on news of a CEO change, with Elliott Hill taking over from John Donahoe in October.
$CEG: Constellation Energy surged more than 17% after announcing plans to restart the Three Mile Island nuclear plant and sell power to Microsoft.
$VST: Vistra soared more than 14%, on pace for a 10-day winning streak and up over 44% in the 10-day period.
$CSTA: Centessa Pharmaceuticals jumped 5% on a Morgan Stanley upgrade, citing potential in narcolepsy treatment.
Other Magnificent 7 Updates
$NVDA and other tech stocks remain in favor as interest rates drop, contributing to the week’s market gains. $META has seen a 7% surge this week, boosting the Nasdaq’s positive performance.
Other Notable Company News
$BAC: Warren Buffett’s Berkshire Hathaway reduced its stake, raising concerns about the future of financial stocks.
Sector Watch
Sector | Symbol | % Change |
|---|---|---|
Utilities | XLU | +2.45% |
Communication Services | XLC | +0.30% |
Technology | XLK | +0.08% |
Consumer Staples | XLP | -0.08% |
Consumer Discretionary | XLY | -0.23% |
Energy | XLE | -0.25% |
Real Estate | XLRE | -0.39% |
Financials | XLF | -0.43% |
Healthcare | XLV | -0.44% |
Industrials | XLI | -0.81% |
Materials | XLB | -0.80% |
Bond Market
The 2-year U.S. Treasury yield stands at 3.57%, close to the Fed’s projected median funds rate of 3.4% for the end of 2025. This positioning suggests that bond traders may not be fully aligning with the Fed’s messaging from this week’s meeting.
Policy Watch
Fed Governor Christopher Waller stated that inflation is coming down faster than expected, supporting the recent half-point rate cut. However, Fed Governor Michelle Bowman expressed concerns that the larger policy action could be interpreted as a premature declaration of victory on price stability, highlighting ongoing debates within the Federal Reserve.
P.S.
Please fuel my coffee pot with a quick click to our sponsor today. It's free, fast, and keeps these insights coming daily.
Thank you for reading,
- JB
Today’s Sponsor - Scan your portfolio with A.I.
Ease into investing
“Ease” being the key word. With automated tools like portfolio rebalancing and dividend reinvestment, Betterment makes investing easy for you, and a total grind for your money.
Note: This newsletter is intended for informational purposes only.