By Bill Hornbarger, Chief Investment Officer
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Three Things to Watch
- The U.S. Federal Reserve (Fed) cut interest rates for the first time in nearly nine months last week, and market watchers and participants will get a chance this week to hear more about the move from a number of Fed officials. There are 18 different Fed appearances scheduled, including Fed Chairman Powell on Tuesday on the economic outlook, and newly appointed Fed Governor Stephen Miran on Monday. Expect the comments to highlight concerns over the labor markets and that Fed policy is meeting-to-meeting at this point.
- The data releases include new home sales, durable goods orders, the third (and final) estimate of GDP and the Fed’s favored inflation measure—core personal consumption expenditures (PCE). Core PCE Is expected to steady at 2.9%, still above the Fed’s 2% target.
- There will also be a smattering of earnings reports, highlighted by Micron Technology, AutoZone and Costco.
Three Things to Know
- It took nearly four years, but small caps finally reached a new all-time high, the second-longest wait in the history of tracking the market-capitalization category (it took 4.7 years after the tech bubble). Eleven other times it took more than a year and three months to reach an all-time high, up nearly 8% on average; one year later it is up 13.3% on average. (Source: Ryan Detrick)
- Building permits fell -3.7% month-over-month in August to an annualized pace of 1.3 million, the lowest since May 2020. Building permits are approvals for new residential construction and serve as a leading indicator of future housing supply. (Source: The Kobeissi Letter)
- The latest estimate (as of September 17) for third-quarter gross domestic product from the Atlanta Federal Reserve Bank (GDPNow) is 3.3%. (Source: Atlanta Fed)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.