Good Morning,
I hope everyone was able to enjoy the beautiful weekend we had!
Markets finished higher last week after shrugging off the widely anticipated government shutdown. As noted previously, government shutdowns normally have a marginal impact on the market but they do delay release of various economic reports. The governments non-farm payrolls data was not published last week which left investors to focus on the weak ADP private payrolls data from Tuesday. This report helped bolster odds that the Fed will cut rates two more times this year – essentially a cutting cycle at a time when the overall economy remains strong (ex-jobs). Outside any major geopolitical progress and coupled with additional rate cuts, I look at Q3 earnings season to provide continued market momentum. It will be interesting to hear how companies talk about forward guidance and any strains they are experiencing. Equity inflows remain strong which supports the idea of this market continuing to broaden out. Please continue to reach out with additional questions/comments.
Attached, please find this week’s Market Strategy Radar Screen Report from John Stoltzfus, Chief Investment Strategist of Oppenheimer Asset Management.
Have a great week!