31/10/2024
Trick or Treat
“All that we see or seem is but a dream within a dream.” — Edgar Allan Poe,
The trick
Mega cap tech results spooked investors and are driving the market down for a second consecutive day. Big tech earnings so far this week have been a mixed bag. While Alphabet shares rose nearly 3% on Wednesday after the company reported strong revenue growth, chipmaker AMD fell more than 10% as investors were disappointed by the company's guidance for the fourth quarter.
Tech earnings continues on Thursday with results from tech giants Apple and Amazon.
"Growth up, inflation down is precisely what you want to see," said Jamie Cox, managing director at Harris Financial Group. "The Fed doesn't need to be afraid of a stable and growing economy to normalize rates this cycle so long as disinflation persists." — CMBC
The treat
On a yearly basis, overall PCE increased 2.1%, its slowest pace since February 2021. The report comes just one week before the Federal Reserve will dole out its next policy decision. After cutting rates by half a percentage point in September, markets have priced in a roughly 96% chance the central bank opts for a smaller 25 basis point interest rate cut on Nov. 7, per the CME FedWatch Tool.
Thursday's reading on inflation follows up September's Consumer Price Index (CPI), which showed prices rose at their lowest annual headline rate since February 2021. — Yahoo Finance
Down the Shore we are Treating ourselves to the wonders of our local shell elf and his artistic flair, welcoming the return of the majestic spoiled bass and whales to our waters in an attempt to Trick ourselves into believing that all is well in Stock Market land. Make it a spooky day.