We squeaked by September without much negative price action in the stock market and we got another read on inflation with the PCE (Personal Consumption Expenditures) on Friday.
The PCE is the Fed’s preferred inflation measure and came in at +2.2% this month which signals more rate cuts are definitely coming after the Presidential election. The markets are beginning to question the strength of the labor market but the weekly continuing jobless claims remain at very low levels and don’t warn of a slowdown.
Earnings season is next and these reports will be parsed for information on growth in the economy and whether companies are reducing headcount. In focus will be the capital spending around artificial intelligence which brings semiconductor and energy companies as leading sectors. Increasingly, technology CEOs are warning that our energy needs will be growing and that our current electric grid will need a turbo boost in the coming years.
Also, I made an appearance on the Schwab Network this week to discuss the earnings report from semiconductor company Micron Technology. The company’s results were received very well by the market and the executives re-iterated that 2025 will be a year of record revenues as artificial intelligence fuels their product sales. Many semiconductor stocks rose on the news and made for a notable week. Here is the clip:
The S&P 500
Before you leave, below is the chart of the S&P 500 and you can see in the upper right hand corner we made some upside progress this week but nothing special.
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President, Kisco Capital
