The sense is 'heaviness' for S&P, as one-by-one the market 'grand dames' seem to crack, at least temporarily.

Freepik

Today's casualty was Netflix (NFLX), although of course financial media will emphasize the ARM IPO as a grand event (priced at 51 is only to those in the offering, so when media reports it at higher level, it won't be unless above the first price it actually trades at once it opens). I just might warn having Softbank as a lead investor could become problematic (in this case like most, we would not be interesting in chasing any IPO initial run, and might look 'if' a stock plunges months later after the 'lockup period' ends).

My comments get brief over most of the next couple weeks, starting now. I'm juggling a few things to prepare for my first international flight in 4 years (for me that's a record absence, but of course we all had issues during Covid, to say the very least). I did want to note that I dated this report for next Monday, but do intend to update sooner... since I will be flying through New York and unsure of connectivity at during a couple nights in a Barcelona beach town (it is normal not to arrive for a cruise the same day, just in-case given delays or other disruptions). So I'll provide brief '2nd and 3rd Editions' if I can.

As to the CPI, well, it was even stronger than I thought, having believed we'd see an uptick in the headline number, but less so in the Core. Well Oil prices (as suspected) contributed to both being higher, but most analysts tend to think that won't dissuade the FOMC from pausing rate hikes.

Well I concur in-that the Fed should stop and focus on their Balance Sheet in the near future, not put more day-to-day pressure on small business and our working class population that relies heavily on credit and is impacted more by high rents and so on than they are by the higher prices of food. Higher fuel is a detriment to disposable income as I've mentioned, and perhaps the Netflix comment about sluggish growth absolutely fits into the mold of consumers on the prowl to reduce streaming services and entertainment beyond basics. I'm suspecting you'll see more of that, hence some airpockets in mega-cap stocks that ultimately make lows and then bounce into 2024.

'Market X-Ray' 

Remains cautious and suspicious of rallies, as even though the S&P pattern appears symmetrical in structure (still fluctuating around the 50-Day Moving Average), the leading big-cap stocks continue to be 'shaky'.

A small 'bull/bear' battle roiled stocks in the final hour or so Wednesday and might repeat today. And of course tension should remain on the tape into the FOMC meeting next week, so it's conceivable nothing dramatic happens until then, while the overall cautious September 'tone' clearly prevails for now.

Meanwhile... not much in terms of corporate developments in stocks that we do cover. Delta Airlines (DAL) is down in-sympathy with others, but at least they're got their own refinery (smart) so don't have to pay full-pop for Jet A fuel like American and United must (Southwest hedges). Of course even Delta has to pay for 'refueling' their Fleet internationally, which is much of their revenue these days (and this is a lower season for travel, hence lighter load factors.. I hope so as I dodge storms over the Atlantic and apparently in the Med too.

Bottom-line: 

Billions of subsidies have gone to huge companies without the awareness that some profits will primarily go to foreign firms. EV's are a threat of course to the UAW and the entire auto-repair industry, which is part of why all this is so up in arms about wages and jobs security. Today Ford (F) introduced a hybrid F-150 pick-'em-up truck, and that will likely be welcomed by workers, but also makes sense, as 'range-anxiety' is truly a major EV truck problem.

Market remains skittish as already described. Thursday I will do a morning 'X' or Tweet, and possibly one comment. No others unless extra time in Delta's SkyClub at JFK, which is unpredictable (even more so than the market or for that matter the lines notorious just to get into the lounges.). What matters will be no delays and getting over the Atlantic before Hurricane Lee nears NE.

As to the market, ideally it will languish into Rosh Hashanah, which begins on Friday evening, and to all observing a very Happy New Year. I will be in Spain then and presumably not subject to any inquisition-style harassment.

More By This Author:

Market Briefing For Wednesday, Sep. 13
Market Briefing For Tuesday, Sep. 12
Market Briefing For Monday, Sep. 11