Good Morning,
I hope everyone had a nice weekend. Halloween spending is projected to reach a record ~$13.1 billion this year, surpassing ~$12.2 billion spent in 2023. You might call that a sugar high!
Markets look to continue the momentum from last week with all three major indices opening today at record highs. The US and China have reportedly agreed to the framework of a potential trade deal ahead of a meeting between President Trump and President Xi later this week. Time will tell but for now, tensions appear to have simmered which is a positive for equities. We also have a Fed interest rate decision on Wednesday that is expected to yield another 0.25% rate cut. The delayed CPI data from September came in lower than anticipated which helped clear the way for a second cut this week with odds growing of a 3rd cut in December. I think markets have largely priced in the cut on Wednesday but it will be interesting to hear how Fed Chair Powell discusses the path forward. Lastly, it’s the busiest week of Q3 earnings this week with some 172 names set to report including: Microsoft, Alphabet, Meta, Amazon and Apple. All things considered, there is a lot of momentum as we enter what is historically the best stretch of months for the stock market (November through April). I’m optimistic while also looking to maintain a level of downside protection within high cash flow companies. Please continue to reach out with additional questions.
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 and Happy Halloween!