Author: Zac Martin, Investment Associate
Weeks Ending October 24th – Another AI Chip
Consumer Price Index for September increased to 3.0%, however, Core Prices decelerated to 3.0%, from 3.1%. The acceleration in headline inflation was due to an increase in energy prices. The cooler Core inflation report moved US markets higher during Friday’s trading session, with the S&P 500 climbing 0.83%. Friday’s report moved Rate Cut odds for this Wednesday’s FOMC meeting by 0.25%, with the market expecting a 25bps cut to be announced.
Leading Economic Indicators for August declines by 0.5%, with the index declining 2.8% over the past six-months compared to a decline of 0.9% over the same period a year ago. The driving variable for this decline continues to be ISM New Orders and Consumer Expectations for Business Conditions. These components have declined -1.01% and -1.40%, respectively for six months.
Earnings: Currently, 29% of the S&P 500 constituency has reported, with 87% of those companies reporting above EPS estimates – well above the five-year average of 78%. Earnings revisions have been 63% positive, increasing the blended growth rate for Q3 to 10.4% up from 8.0% when Q3 estimates bottomed in early July.
The Week Ahead:
- FOMC Meeting (10/29)
- GDP Q3 First Preliminary Reading (10/30)
- Personal Consumption Expenditures (10/31)
- Earnings Ahead: META, GOOGL & MSFT (10/29) AAPL & AMZN (10/30)
HORAN Wealth, LLC is an SEC registered investment advisor. The information herein has been obtained from sources believed to be reliable, but we cannot assure its accuracy or completeness. Neither the information nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Any reference to past performance is not to be implied or construed as a guarantee of future results. Market conditions can vary widely over time and there is always the potential of losing money when investing in securities. HORAN Wealth and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. For further information about HORAN Wealth, LLC, please see our Client Relationship Summary at adviserinfo.sec.gov/firm/summary/333974.