On Friday, markets digested the latest PCE inflation numbers.
There were no major surprises in the report.
Prices rose in line with previous months and expectations…
- +0.3% month-over-month
- +3.4% year-over-year
- Dow Jones -1.2%
- Nasdaq +0.4%
- S&P 500 -0.5%
- Russell 2000 -1.2%
Sector Round Up
Of the 11 sectors, only 2 ended Friday with gains.
- Consumer Discretionary (XLY) +1.1%
- Technology (XLK) +0.6%
At the bottom…
- Financials (XLF) -1.8%
- Utilities (XLU) -1.9%
- Energy (CLE) -2.4%
The S&P 500 finished Friday at the bottom of a long-term support zone and extremely oversold.
History tells us that these extremes can’t be maintained.
Markets are bouncing sharply in premarket trading. We expect the seasonal bottom to be in this week if it wasn’t already reached on Friday.
Your latest readout…
- The VIX held steady below 22 but above 20
- RSI levels are mostly oversold, the Nadaq is neutral
- The put-to-call ratio is oversold
Another busy week of earnings to end October and welcome November…
- Pinterest (PINS) Monday after-hours
- AMD (AMD) Tuesday after-hours
- PayPal (PYPL) Wednesday after-hours
- Palantir (PLTR^) Thursday per-market
- Apple (AAPL) Thursday after-hours
- Carvana (CVNA) Thursday after-hours
The latest interest rate from Washington is due out this week also. The FOMC convenes on Tuesday and closes with a decision on Wednesday.