https://www.howestreet.com/2024/10/what-has-more-impact-than-fed-control-of-interest-rates-mark-leibovit/

 

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Inflation is not caused by the actions of private citizens, but by the government: by an artificial expansion of the money supply required to support deficit spending. No private embezzlers or bank robbers in history have ever plundered people’s savings on a scale comparable to the plunder perpetrated by the fiscal policies of statist governments.

~ Ayn Rand

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Negative Reaction To Microsoft, Meta Results Leads To Sell-Off On Wall Street

After moving sharply lower early in the session, stocks continued to see considerable weakness throughout the trading day on Thursday. The Nasdaq saw a particularly steep drop on the day amid a sell-off by technology stocks.

The major averages saw further downside going into the close, ending the session near their worst levels of the day. The Nasdaq plunged 512.78 points or 2.8 percent to 18,095.15, the S&P 500 tumbled 108.22 points or 1.9 percent to 5,705.45 and the Dow slumped 378.08 points or 0.9 percent to 41,763.46.

The sell-off on Wall Street came amid a negative reaction to earnings news from tech giants Microsoft (MSFT) and Meta Platforms (META).

Shares of Microsoft plunged by 6.0 percent after the company reported better than expected fiscal first quarter results but provided disappointing revenue guidance for the current quarter.

Facebook parent Meta also dove by 4.1 percent after reporting third quarter earnings that beat estimates but weaker than expected user growth. Meta also forecast an increase in capital spending due to AI investments.

Traders were also reacting to closely watched consumer price inflation data that largely came in line with economist estimates.

The Commerce Department said its personal consumption expenditures (PCE) price index rose by 0.2 percent in September and the annual rate of growth slowed to 2.1 percent, which both matched expectations.

However, the annual rate of growth by the core PCE price index, which excludes food and energy prices, was unchanged from the previous month at 2.7 percent. Economists had expected the pace of growth to slow to 2.6 percent.

The slightly faster than expected core price growth may have added to recent concerns the Federal Reserve will lower interest rates more slowly than hoped.

“The year-over-year core PCE print indicated a 2.7% increase suggesting that the Fed is still on a bumpy course in this last mile to quell inflation and declare victory,” said Quincy Krosby, Chief Global Strategist for LPL Financial.

She added, “Although a 25-basis point move lower at the next Fed meeting is expected the Fed will need to acknowledge that with still resilient consumer spending, higher wages from a series of successful strikes, and a solid labor market, they will need to adopt the “gradual” approach towards lowering rates until there’s a comfort level within the FOMC that inflation isn’t poised to continue edging higher.”

A report from the Labor Department showing initial jobless claims unexpectedly fell to a five-month low last week may also have added to the worries about slower rate cuts.

Sector News

With Microsoft helping lead the way lower, software stocks saw substantial weakness on the day, dragging the Dow Jones U.S. Software Index down by 4.3 percent.

Significant weakness was also visible among semiconductor stocks, as reflected by the 4.0 percent nosedive by the Philadelphia Semiconductor Index. The index tumbled to its lowest closing level in over a month.

Gold stocks also moved sharply lower along with the price of the precious metal, resulting in a 3.2 percent slump by the NYSE Arca Gold Bugs Index.

Computer hardware, commercial real estate and brokerage stocks also saw considerable weakness, while utilities and energy stocks bucked the downtrend.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower on Thursday. Japan’s Nikkei 225 Index fell by 0.5 percent and Hong Kong’s Hang Seng Index eased by 0.3 percent, although China’s Shanghai Composite Index bucked the downtrend and rose by 0.4 percent.

The major European markets also moved to the downside on the day. While the French CAC 40 Index slumped by 1.1 percent, the German DAX Index slid by 0.9 percent and the U.K.’s FTSE 100 Index declined by 0.6 percent.

In the bond market, treasuries regained ground after coming under pressure in early trading but still closed modestly lower. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, inched up by 1.8 basis points to a three-month closing high of 4.284 percent.

Looking Ahead

The Labor Department’s monthly jobs report is likely to be in the spotlight on Friday, although a reading on manufacturing activity may also attract attention along with the latest earnings news.

Apple (APPL), Amazon (AMZN) and Intel (INTC) are among the companies releasing their quarterly results after the close of today’s trading, while Exxon Mobil (XOM) and Chevron (CVX) are due to report their results before the start of trading on Friday.

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https://www.metastock.com/offer/event/?whc=traders-conference&pc=eq-vrtrader

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Excellent poltiical commentary from Vancouver’s Michael Campbell:

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https://tinyurl.com/2ejnk9mh

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https://tinyurl.com/2fxvpr32

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TERRIFIC MARTIN ARMSTRONG INTERVIEW ON TRACK 3

https://www.howestreet.com/2024/10/silver-gold-uranium-us-civil-war-real-estate-martin-armstrong-hilliard-macbeth-ross-clark-this-week-in-money/

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Yes, that’s a cartoon of me.  Louis Rukeyser had us dressed up in ‘elf’ costumes on the screen broadcast each week.  I’ve dated myself. That occurred for me between 1988-1996.  Lou didn’t like any bearish comments, so myself and other elves got dumped in 1996.  

WHO am I?

MARK LEIBOVIT is Chief Market Strategist for LEIBOVIT VR NEWSLETTERS  a/k/a VRTrader.Com. His technical expertise is in overall market timing and stock selection based upon his proprietary VOLUME REVERSAL (TM) methodology and Annual Forecast Model.

Mark’s extensive media television profile includes seven years as a consultant ‘Elf’ on “Louis Rukeyser’s Wall Street Week” television program, and over thirty years as a Market Monitor guest for PBS “The Nightly Business Report”.  He also has appeared on Fox Business News, CNBC, BNN (Canada), and Bloomberg, and has been interviewed in Barrons, Business Week, Forbes and The Wall Street Journal and Michael Campbell’s MoneyTalks.

In the January 2, 2020 edition of TIMER DIGEST MAGAZINE, Mark Leibovit was ranked the #1 U.S. Stock Market Timer and was previously ranked  #1 Intermediate U.S. Market Timer for the ten year period December, 1997 to 2007.

He was a ‘Market Maker’ on the Chicago Board Options Exchange and the Midwest Options Exchange and then went on to work in the Research department of two Chicago based brokerage firms.  Mr. Leibovit now publishes a series of newsletters at www.LeibovitVRNewsletters.com.   He became a member of the Market Technicians Association in 1982.

Mr. Leibovit’s specialty is Volume Analysis and his proprietary Leibovit Volume Reversal Indicator is well known for forecasting accurate signals of trend direction and reversals in the equity, metals and futures markets. He has historical experience recognizing, bull and bear markets and signaling alerts prior to market crashes. His indicator is currently available on the Metastock platform.

His comprehensive study on Volume Analysis, The Trader’s Book of Volume published by McGraw-Hill is a definitive guide to volume trading.  It is now also published in Chinese.  Mark has appeared in speaking engagements and seminars in the U.S. and Canada.

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• Donations to LGBTQIA+ organizations

  Some shareholders have argued that Disney’s donations to organizations that serve the LGBTQIA+ community are “extreme pursuits” that ignore the beliefs of most Americans.

• Inclusion of LGBTQ+ characters

  Some critics have taken issue with Disney’s inclusion of LGBTQ+ characters and elements in stories, such as a same-sex kiss in Lightyear and a nonbinary character in Elemental.

• Black Ariel in Little Mermaid

  Some critics have taken issue with the inclusion of a Black Ariel in the recent Little Mermaid.

• Economic and reputational consequences

  Some claim that Disney’s “woke virtue signaling” has had economic and reputational consequences, with Disney’s market cap falling nearly 40% since February 2021. 

In response to these criticisms, Disney CEO Bob Iger has said that: 

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RFK Jr. Shreds Democrats for Abandoning Democracy

https://tinyurl.com/24sh92xa

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I USE JOEL WALLACH’S SUPPLEMENTS EVERY DAY.  MAY AGAIN PROVIDE A LINK TO PURCHASE THEM HERE

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