Welcome Back,

Market Headlines 👀 

• JP Morgan (JPM) CEO Jamie Dimon believes the Fed needs to keep raising rates to fight inflation.

• US House speaker McCarthy updates his plan to avoid government shutdown, the two sides still haven’t come to an agreement after lengthy meetings this week.

• US weekly jobless claims came in at 201k; est: 220k.

• US existing home sales fell 0.7% MoM and hit a seven month low.

• Cisco (CSCO) announces acquisition of cyber-security company Splunk in a $28b all cash deal.

• Fox Corp (FOX) Rupert Murdoch steps down from his role with Fox Corp.

• Bank of England announces a rate pause today leaving their benchmark rate at 5.25%.

• Alphabet (GOOGL) announces new AI features for Youtube creators, such as an AI dubbing tool ‘Aloud’ and much more.

  S&P 500 Heat Map

Recap Around the Street 🧠

Summary of the US Federal Reserve meeting from yesterday. While rates were unchanged, the dot plot came in more hawkish. Higher for longer looks to be the theme as of now.

The Fed surprised markets by raising their dot plot forecasts implying higher for longer on rates and pushing out the first rate cut into the fall of 2024, problematic timing given election year optics. The Fed also upgraded their Summary of Economic Projections (SEP) for higher growth AND lower inflation.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Higher financing has not put a serious dent into home prices. This won’t likely correct unless there is a surge in single family housing supply and/or higher unemployment that would presumably force displacement in residency. Higher replacement values have also put a floor underneath home prices.(Contributed by Benjamin Lavine, CIO at 3D/L Capital).

Market Preview 🎞️

• Friday, September 22nd: S&P Global US manufacturing service and composite PMIs

• —> Podcast spotlight: Pounding the Table 👊 : listen now; where you will find in-depth analysis around these highlights, read company deep dives, and interviews with public CEO's!

That’s all for this week, folks! We’ll be back around the same time Monday with a curated list of important news, economic data and market highlights. 

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