Three Things to Watch
- Quite a bit to keep an eye on this week with Wednesday’s Consumer Price Index (CPI) report looming large. Core CPI is expected to tick slightly higher (2.5% versus last month’s 2.4%), and traders will keep a close eye on the report with yields climbing amid new inflation concerns. Overall CPI is expected to increase 3.6%, up from 3.4% in August.
- Third-quarter earnings season kicks off in earnest this week with several large financials reporting, including Wells Fargo, Citigroup, Bank of America, Morgan Stanley and Blackrock. Taiwan Semiconductor also reports. Earnings have been one of the biggest stories and drivers of higher stocks year-to-date in 2026.
- The Small Business Optimism Index report will be released on Tuesday. Consumer sentiment remains very negative while business optimism has been more resilient, despite higher energy prices and inflation.
Three Things to Know
- Among the S&P 500 stocks, 84% are now trading at least -10% below their all-time highs. Real estate leads the drawdown, with 97% of stocks down at least -10%, followed by materials at 96%, utilities at 94%, and consumer discretionary at 92%. By comparison, energy has held up relatively better, with 62% of stocks more than -10% below their all-time highs, followed by healthcare at 70% and information technology at 72%. Furthermore, 59% of S&P 500 stocks are down at least -20% from their highs, 41% are down more than -30% and 17% are down more than -50%. Meanwhile, the S&P 500 is just 0.2% from its all-time high set on Tuesday. (Source: The Kobeissi Letter)
- Here’s the median household net worth by age (2025): Under 35: $33,000; 35-44: $156,000; 45-54: $255,000; 55-64: $411,000; 65-74: $432,000; 75+: $505,000. (Source: @dollarsanddata)
- The S&P 500 increasingly looks like two stock markets: AI-related companies and everybody else. According to Jim Bianco, the 41 AI-related companies his research firm tracks accounted for 48.68% of the S&P 500’s combined market capitalization. The remaining companies accounted for 51.32%. (Source: Jim Bianco)
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.
6009851 – EXP: 10/31/2029