We began Friday’s recap with:
Friday was an interesting – and dare I say sort of bullish – day. …. When weak opens are bought aggressively that is generally a good sign; let’s see if there is more of that next week.
So indeed there was follow through Monday and bulls may be back in town? There was a gap up at the open and steady buying all day ending with the S&P 500 gaining 1.83% and the NASDAQ 1.56%. Ironically this has all happened since Friday morning’s really bad employment data. Bad news = good news again people. Enjoy!
“Investors increasingly believe any Fed action is off the table for the rest of the year,” said Jack Ablin, chief investment officer at BMO Private Bank. “It would seem to me the Fed was reluctant to raise rates in September. Now we had a lousy jobs report, (which sector offered) really the only shed of consistently positive news.”
In U.S. economic news, ISM non-manufacturing came in at 56.9 for September, below August’s 59 read and expectations of 57.5. This was still far better than the ISM manufacturing report last week which was just above the 50 reading that signals expansion.
Please note we are about to begin earnings season. If you are a newer reader it is worth your while to read “5 Easy Steps to Navigate Earnings Season better than the Pros.”Continue reading