You know what they say about a good party – it’s all about momentum, and right now, the stock market is dancing like nobody’s watching. For the fourth time in a row, stocks strutted their stuff with a rise that’s got everyone talking. And what’s the secret sauce behind this shindig? Well, it’s like this: the latest economic reports are dropping hints that the Federal Reserve might be thinking of slowing down on those interest-rate hikes.
Striking the 4,500 Mark: S&P 500 Takes the Leap 🚀
Picture this: the S&P 500 took a leap and cleared the 4,500 hurdle like a champ. And who’s leading the pack in the “Let’s Make Some Money” game? None other than Apple Inc., showing everyone how it’s done in the world of megacaps. But it wasn’t all smooth moves – regional banks stumbled a bit. No worries, though, because Bloomberg News spilled the beans on the Fed giving some serious side-eye to lenders holding assets between $100 billion and $250 billion. Looks like they want to keep a closer watch on the party.
After-Hours Bulls: Salesforce Joins the Celebration 🐂
After-hours action saw Salesforce Inc., a software company, joining the celebration with some bullish vibes about their future. Meanwhile, Treasury yields decided to take a chill pill and headed south. And guess what? Those swap contracts are whispering that the chances of another US rate increase this year are slimmer than a smartphone on a diet.
Economy’s Odd Swagger: “Bad News is Good News” Vibe 🤷♂️
Why the grin on investors’ faces? Well, according to Mark Hackett, the big cheese of investment research at Nationwide, folks are all about the “bad news is good news” groove. They’re betting that a slower economy could make the Fed play it cool instead of going all-out with those rate hikes. But, as with any good dance, there’s a twist – if things swing too much, it could be like riding a rollercoaster blindfolded.
Economic Surprise Diva: Citigroup Index Takes a Dive 📊
The Citigroup Economic Surprise Index for the US is acting like a diva, plunging below 50 and making everyone go, “Wait, what?” Apparently, recent reports didn’t quite hit the mark, and economists are getting a reality check. As Hackett pointed out, those pleasant surprises are harder to come by lately.
Economic Rollercoaster: GDP’s Not-So-Firework Performance 🎢
Hold up, because the second quarter’s economic progress wasn’t exactly a firework show. The US economy did its thing, but not as explosively as initially thought. Gross domestic product (GDP) put on a 2.1% annualized performance, which is a tad lower than the government’s earlier estimate. And remember the first quarter? Yeah, that was a 2% show.
Economy’s Middle Ground: Searching for the “Not Too Hot, Not Too Cold” Zone 🌡️
According to Jim Baird, the mastermind at Plante Moran Financial Advisors, the economy’s reality is like that “not too hot, not too cold” porridge Goldilocks was after. If the economy sways that way, it might convince the Fed to pump the brakes on the tightening frenzy. At least for a little while.
Euro’s Mixed Signals: Inflation’s Tango 🕺
Over in Europe, the euro got a little boost as inflation decided to play nice in Germany but kicked it up a notch in Spain. It’s like the European Central Bank is sitting in front of the TV with a bag of popcorn, deciding whether to hit the interest-rate button again. And as for oil, it decided to stretch its legs and climb a bit thanks to a drop in US crude stockpiles.
Corporate Gossip Alert: Tesla’s Material Mystery, Apple’s 3D Print Party 🗞️
Tesla Inc. is raising eyebrows with its plan to snag some elusive construction materials. The big shots are taking a closer look, wondering if the project was a smart use of company dough. Meanwhile, Apple is turning heads by flirting with the idea of 3D printers to cook up the steel chassis for its new smartwatches. That’s like saying goodbye to the old factory assembly line.
Fees and Forecasts: Visa, Mastercard, HP, and American Airlines Take the Stage 💳✈️
Visa Inc. and Mastercard Inc. are strutting their stuff with a plan to hike up the fees retailers pay when they swipe those credit and debit cards. But not everyone’s in the limelight – HP Inc. is taking a dip after confessing that the rebound in computer demand isn’t as speedy as they hoped. And over at American Airlines Group Inc., flight attendants are giving their union a thumbs-up to call for a strike if the stars align under federal labor law. The stock? It’s taking a step back.
Upcoming Market Moves: Stay Tuned for the Action 🗓️
Hold onto your seat, because there’s more action lined up this week:
- China’s showing off its manufacturing and non-manufacturing PMI moves on Thursday
- Japan’s got some industrial production and retail sales action on the same day
- Europe is putting out its CPI and unemployment stats on Thursday
- The ECB’s got some juicy details from its July monetary policy meeting to share
- Thursday also sees the US spill the beans on personal spending, income, and initial jobless claims
- China wraps up the week with its Caixin manufacturing PMI on Friday
- And Europe chimes in with its S&P Global Eurozone Manufacturing PMI, also on Friday.
So, hang tight, party people! The markets are keeping the beat, and this shindig’s just getting started. 🎉🕺💃