September 10th Market Overview

September 10th Market Overview (no fluff)

Author

J.L. Bernstein
September 10, 2024

In partnership with

Happy Tuesday everyone.

We are still seeing some green today besides the Dow. I like this follow up from yesterdays price action.

Lets dig in…

Executive Summary

  • S&P 500 and Nasdaq post gains for second consecutive session, while the Dow slips

  • Tech stocks lead market recovery, with Nvidia up and Oracle surging 11% on strong earnings

  • Ally Financial plummets 17% due to rising credit challenges in auto loans

  • Investors await key CPI and PPI reports ahead of Fed’s September meeting

Market Overview

We’re seeing a mixed performance today. The S&P added 0.45% to close at 5,495.52, and the Nasdaq gained 0.84% to end at 17,025.88. However, the Dow Average slipped 0.23% to 40,736.96, primarily due to pressure on bank stocks.

Key Market Drivers

  1. Tech sector rebound: Nvidia, AMD, and Microsoft led gains, boosting the S&P 500 and Nasdaq.

  2. Credit concerns: Ally Financial’s warning about consumer credit challenges is weighing on broader market sentiment.

  3. Earnings surprises: Oracle’s strong performance and AWS partnership announcement are lifting tech sector optimism.

  4. Economic data anticipation: Investors eagerly await CPI and PPI reports, which could influence Fed decisions.

Stock Spotlight

  1. Oracle (ORCL): Surged 11% after beating Q1 expectations and announcing an AWS partnership.

  2. Ally Financial (ALLY): Plummeted 17% after warning of intensified credit challenges in Q3, particularly in auto loans.

  3. JPMorgan Chase (JPM): Dropped 5% following cautious 2025 net interest income outlook, impacting the banking sector.

  4. Mission Produce (AVO): Jumped 20% on strong fiscal Q3 revenue growth of 24% year-over-year.

  5. Calavo Growers (CVGW): Advanced 12% after beating Q3 earnings expectations and doubling its dividend.

Other Magnificent 7 Updates

  • Nvidia (NVDA): Closed higher, contributing to the tech sector’s rebound.

  • AMD: Saw increases as tech sentiment improved.

  • Microsoft: Continued to gain traction, supporting the tech recovery.

Other Notable Company News

  • Hewlett Packard Enterprise (HPE): Dropped more than 5% on plans to sell $1.35 billion of convertible preferred stock.

  • Johnson Controls International (JCI): Rose nearly 2% after JPMorgan upgraded the stock to buy.

Sector Watch

Sector

Symbol

% Change

Consumer Discretionary

XLY

+1.39%

Consumer Staples

XLP

flat

Energy

XLE

-1.92%

Financials

XLF

-0.98%

Health Care

XLV

+0.45%

Industrials

XLI

+0.18%

Materials

XLB

+0.07%

Real Estate

XLRE

+1.77%

Technology

XLK

+1.23%

Communication Services

XLC

+0.12%

Utilities

XLU

+0.44%

Bond Market

Treasury yields could face pressure depending on the CPI and PPI report outcomes.

Policy Watch

The Federal Reserve’s September 17-18 meeting looms. The Markets anticipate a potential quarter-point interest rate cut to address economic concerns. Everyone is closely monitoring economic indicators for clues on the Fed’s monetary policy direction and its 2025 outlook.

Today’s Sponsor (get your portfolio analyzed by A.I.)

We put your money to work

Betterment’s financial experts and automated investing technology are working behind the scenes to make your money hustle while you do whatever you want.

Note: This newsletter is intended for informational purposes only.