Friday’s sell off of the Artificial Intelligence sector was not enough to stall the indexes. The S&P 500 added 1.9% and the Nasdaq gained 1.0%. The blue-chip Dow Jones Industrial Average led the indexes surging 3.2%. The Russell 2000 with its smaller-cap value stocks were popular buys, as heavy capital pivoted into the exchange. Many traders have been adjusting portfolios to reflect a more conservative posture, away from mainstream high techs. The University of Michigan department of surveys released the consumer-sentiment survey results for August, showing ‘below expectation readings’. The survey, one of the Fed’s preferred to gauge existing and short term inflation trends, did not get near the target of 2%….yet. The bond market, overly active the past two weeks, in anticipation of a rate cut have been heavy buyers of the 10-year Treasury. Many holders of the 30-year bond have been sellers as crunchtime of a possible September rate cut is nearing, “The yield curve, the spread between the 2-year and thirty year is floating in its widest spread since 2022,” according to Dow Jones Market Data. A former Federal Reserve Chairman, William McChesney said, “the job of the Fed is to take away the punch bowl just when the party is getting started,”
All stocks slid onTuesday as the short Labor Day Week (Sept. 1, labor day)opened, as usual…beginning what is typically the ‘worst trading month of the year.’ The blue-chip Dow Jones index lost 250 points. Both the S&P 500 and Nasdaq fell 0.7% and 0.8% respectively. Tariff concerns and inflation concerns have curbed enthusiasm of many investors and traders, with lower volume sessions. Adding to recent market upheaval, a recent Federal Appeals Court decision has struck down most of President Trump’s proposed tariffs, “ruling them unconstitutional.” Trump criticized the decision as “highly partisan” and ready to go to the Supreme Court. Gold was the bright spot early in the week reaching a new high near $3,600 a troy ounce, settling back to near $3,550 an ounce. The 10-year Treasury yield edged higher closing Tuesday at 4.3%.
Wednesday’s Dow Jones Index was jolted by the negative JOLTS report, dropping 273 points, with the S&P 500 edging lower and the Nasdaq adding a bit. The Russell 2000 lost 0.7%. “For the year the Dow Jones is up 2186, up 6.4%, while the S&P 500 gained 566, or 9.6% and the heavy tech Nasdaq led all indexes surging 11.3% or 2186 points.
Could Walt Disney ever envision a partnership with Major League Baseball? Two huge entities are coming together….ESPN and Major League Baseball are near a $1.6 Billion dollar mega deal to upgrade the sports channel’s streaming services. ESPN’s streaming offerings just got a major shot in the arm. “The addition of Major League Baseball could provide a big boost to ESPN’s new streaming strategies,” according to the Wall Street Journal, adding, “live sports will potentially enhance mainstream revenue, ensuring viewability at prime times, as seen with Apple, Amazon and Netflix.” In the highly competitive communications field, major league baseball, with ESPN, has locked up “American’s Sport.”
RUMBLINGS ON THE STREET
David Wagner, head of equity at Argus Capital Advisors, Barron’s – “During consumer earnings season it always feels like investors are looking to poke holes in the health of consumers, but this time and time again, are continuing to witness that to be a fruitless task.”
Jerome Powell, Fed Chief, Barroin’s – “We can not say for certain where rates will settle out over the longer run, but their neutral level may now be higher than it was in the 2010’s.”
Don Townswick, managing director and equity strategist at Conning, WSJ – “We just haven’t seen the day-to-day impact of the abrasiveness that we saw early on [in the administration].”
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