What happened last week…
The three major indices each finished September in positive territory and all three finished the week with gains: DJIA (0.09%), S&P 500 (0.22%), NASDAQ (0.10%). Year-to-date performances are as follows: DJIA (12.37%), S&P 500 (20.57%), NASDAQ (20.83%).
Federal Reserve Chairman Jerome Powell spoke at the annual meeting of the National Association for Business Economics where he reiterated that interest rates are forecasted to be reduced twice more this year by a total of 50 basis points. Regarding the potential for more aggressive rate cuts Powell said, “This is not a committee that feels like it’s in a hurry to cut rates quickly.” The next Federal Open Market Committee meeting takes place November 6-7.
For Q3 2024, Tesla (TSLA) reported total deliveries of 462,890 (below expectations of 463,310) and total production of 469,796. From the same period a year ago, the company reported deliveries of 435,059 and production of 430,488. Tesla is scheduled to host its robotaxi day on October 10.
PepsiCo (PEP) will purchase Siete Foods parent company Garza Food Ventures for $1.2 billion. Siete Foods was founded in 2014 and has a portfolio that includes grain free tortillas, sauces, and seasonings. The deal is expected to close in the first half of 2025.
The ADP employment change beat expectations (128,000) as it increased to 143,000 from the upwardly revised 103,000 (from 99,000). The unemployment rate beat expectations (4.2%) as it decreased to 4.1% from 4.2%. Nonfarm payrolls beat expectations (150,000) as it increased to 254,000 from the upwardly revised 159,000 (from 142,000). Average hourly earnings month-over-month landed higher than expectations (0.3%) but decreased to 0.4% from the upwardly revised 0.5% (from 0.4%).
The manufacturing PMI for September missed expectations (47.5) as it remained at 47.2. It marks the sixth straight contractionary reading (below 50) and the 22nd contraction in the past 23 months. The non-manufacturing PMI for September beat expectations (51.7) as it increased to 54.9 from 51.5. It is the highest reading since February 2023. The figure has expanded in 49 of the previous 52 months.
Happening this week…
The inflation rate year-over-year for September is expected to decrease to 2.3% from 2.5%, which was the fifth straight monthly decline and the lowest reading since February 2021 (1.7%). The rate peaked at 9.1% in June 2022. Meanwhile, the core inflation rate year-over-year for September is expected to decrease to 3.1% from 3.2%, which was the lowest reading since April 2021 (3.0%).
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- The Rockline Team
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