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- Weekly Wrap-Up - September 7th, 2024
Weekly Wrap-Up - September 7th, 2024
Stocks Sell-Off Hard to Start September
Mark Roussin & CMG Venture
September 07, 2024
Good morning investors!
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This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.
Grab your coffee and let’s dive in.
Market Talk
We alluded to the fact that September is historically the WORST performing month for the stock market, and within the first week, the month held up to its name with stocks selling off hard to close the week.
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3 Stories Moving the Market
These are some of the biggest stories from the week that had an influence on market action.
Markets Sell-Off to close the week
The start market had a rough week, and it closed the week with the worst performing day. The Nasdaq dropped 2.5% to close the week in what was the worst week for the Tech heavy index since June of 2022. For the S&P 500, it was the worst week since March 2023.
Job growth continues to remain lackluster, but the unemployment rate did tick lower to 4.2% after a number of months of increasing unemployment.
Investors are now comfortable that inflation is under control, but the concerns now rely within the economy and the Fed’s approach. The Fed may need to speed up their cuts in order to side step a possible recession.
Fed Governor Waller came out this week discussing his support for a rate cut during this month’s meeting and also noted that cuts may be necessary for consecutive meeting, if the data supports it.
👉 EDGE TAKEAWAY: So why the sell-off? Investors are growing more concerned about the economy, which.…upgrade to Edge+ to read the Full Edge Takeaway.
The August Jobs Report Provides Clues
In August Jobs Report was a big one for investors as it gave some clues as to the possible direction the Fed might go with its upcoming meeting. This report and next week’s CPI report are the last key pieces of information they will see prior to having to make their decision on whether to cut 25 or 50 basis points.
In terms of the Jobs report, during the month of August the economy added 142,000 jobs, well below the expectation of 165,000 jobs to be added during the month. This has been a continuing theme, showing the labor force has weakened. It is important for stocks to have a solid labor force because if not, it usually means unemployment will tick higher and after all, consumers make up roughly 70% of the country’s GDP.
Apple is now the ONLY $3 Trillion Company in the US
Given the sell-off we have seen of late, particularly in technology, we have seen stocks like Microsoft and Nvidia pullback, among others. Microsoft over the past few months is down roughly 10% with Nvidia shares pulling back roughly 25%.
Heading into the most recent earnings season, the S&P 500 had three companies with a market cap in excess of $3 Trillion. However, after the recent sell-offs that is down to one, and that is Apple. Apple has been holding its own during these turbulent times as it ventures into an important week for them as they get ready for the launch of their latest iPhone. This event has high expectations as one of the growth drivers as it pertains to the stock and its forward estimates are centered around an iPhone super-cycle, where the volume levels skyrocket.
Apple is a stock to watch closely this coming week.
In Other News
In this section, we'll be curating a selection of news headlines we think you'll find interesting. If a topic catches your eye, click the provided links to read more about it.
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IE+ Posts of the Week
We continue to push out more and more content every week to give investors that edge. Here are the posts Investor’s Edge+ subscribers received this week.
Edge Report
Mondays are for the more serious investors. Every Monday morning we share exactly what we’re watching in the week ahead, how we’re positioning, and even share a sneak peek into our systems and models. Here is the latest Edge Report:
Earnings Recap
Every week during earnings season we share a recap of the quarterly reports from stocks that we cover. You can see this week’s earnings recaps here:
The Week Ahead
The week ahead is one of the slower weeks we have encountered in some time, but its not all quiet as we will get an updated reading on inflation when the CPI report comes out mid-week.
The week after is going to be the big one when the Fed meeting kicks off and so does the interest rate cut cycle, at least we are expecting it to begin this month.
Earnings Reports
Earnings season has officially slowed down with many of the big names stocks having already reported their latest earnings reports. Here is the list of names we will be covering next week:
Monday 9/9: Oracle
Tuesday 9/10: --
Wednesday 9/11: --
Thursday 9/12: Adobe
Friday 9/13: --
Here is the full calendar of scheduled earnings releases:
Economic Reports
Next week we will get yet another update on inflation, which should all but confirm the Fed has reached its near goal of 2% inflation. Consumer sentiment will close the week out.
Monday 9/9: Consumer Credit
Tuesday 9/10: --
Wednesday 9/11: Consumer Price Index
Thursday 9/12: Initial Jobless Claims, PPI
Friday 9/13: Consumer Sentiment
Want more? Check out our other resources
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Mark (Dividend Seeker)
Chris (CMG Venture)
Thank you for reading this edition of the Weekly Wrap-Up. Have a great weekend!
Until next time investors!
Mark & Chris
The Investor’s Edge
Disclosure
This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.
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