Good Morning,
I hope everyone had a great Halloween weekend! It’s open enrollment season for most health insurance plans (private & public). Please reach out if you have any questions around this process.
Markets opened mixed this morning coming off a busy news week that culminated with the meeting between President Trump/Xi. Key outcomes included China agreeing to pause rare earth export controls and resume purchases of US soybeans and other agricultural products. In exchange, the US will reduce select tariffs and roll back restrictions on some Chinese companies. Much of this news was already priced in the market but it does ease concerns around rising tensions. Stateside, the Fed cut rates on Wednesday (as anticipated) though Chair Powell made it clear that future cuts were not guaranteed. Ironically, with the ongoing government shutdown, I think enough short-term economic pain/layoffs will be recognized to secure another rate cut in December. It’s an interesting market, in my opinion, as earnings continue to largely exceed expectations assisted by the “Wealth Effect”. Market earnings momentum will likely grind back and forth here ahead of Nvidia’s report on November 19th. I think any resolution to the government shutdown will provide a leg higher as we enter holiday shopping season. All things considered, I continue to favor strong balance sheet companies with consistent cash flows as this market grinds higher. Please reach out with any 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!