Last Night's Market Recap
S&P 500 - Heatmap
Overnight – “Investors buy the dip expecting “Flawless Goldilocks” scenario
Investors are now expecting “super-sized rate cuts” and an improving economy as stocks closed closer higher Friday, notching its best week this year as easing fears over the economic triggered a wave of dip buying in stocks following the recent market turmoil.
The University of Michigan survey data released Friday showed that consumer sentiment rebounded in August for the first time since August, cooling further worries about the economy.“ Recent data has shown that sentiment is being dragged down by lower income households, likely as a consequence of continued sticky inflation,” Jefferies said in a Friday note. Consumer expectations about inflation over the next year and five-to-ten years were also unchanged at 2.9% and 3%, respectively, firming expectations the Fed’s policies are working just as focus shifts to Fed chairman Jerome Powell’s speech next week at Jackson Hole.
Vice President Kamala Harris on Friday outlined her economic agenda focused on tax cuts, affordable housing and lower food prices that the Democratic presidential nominee believes will create opportunities for the middle class.
In corporate news, Ford Motor Company stock rose 0.5% even as the National Highway Traffic Safety Administration said on Friday the auto giant is recalling about 85,000 Explorer SUVs equipped with the Police Interceptor Utility package over concerns of an engine fire.
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The Day Ahead
ASX SPI 7898 (-0.02%)
The ASX has its biggest week of earnings for this half-year this week and the market will definitely be company focused. There is very little else to focus on at home and abroad, with a near empty economic calendar. The US market usually has a messy grind higher in these quiet weeks, so we expect little influence from offshore
Tone of Earnings so far – this week has proven that good results AND optimistic outlook for “market darlings” are heavily rewarded. Any form of “miss” or reduction in guidance, or poor to conservative outlooks are punished.
The following companies due to report:
Yesterdays Key Earnings Results:
