Good Morning,
I hope everyone had a great Labor Day weekend and ceremonial end to summer! For anyone interested in seeing fall color changes in Michigan, click here for a peak timetable.
Stocks ended last week largely flat as we now kick-off September which has some seasonal weakness historically associated with it. We find ourselves back in a market environment that will likely reward a weaker August jobs report (set to be released Friday) as it would more less secure a rate cut when the Fed meets in two weeks (16th – 17th). Between now and then we will also get a read on prices (CPI) for August (next Thursday the 11th). I am firmly in the camp that we will see a cut this month with upwards of two more by year end. The market today is pondering the outlook of tariffs which are being questioned by a federal appeals court and also, the level of AI spend throughout the economy. I think any pull-back in near-term momentum will help set the stage for stocks to grind higher heading into the holiday shopping season. I still like quality value names here as we see more breadth in the market. Please continue to reach out with 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 rest of the week!