XLI Nov 2024 131.500 put
| Previous Close | 1.2900 |
| Open | 1.2900 |
| Bid | 0.0400 |
| Ask | 3.7000 |
| Strike | 131.50 |
| Expire Date | 2024-11-01 |
| Day's Range | 1.2900 - 1.2900 |
| Contract Range | N/A |
| Volume | |
| Open Interest | 6 |
- Yahoo Finance Video
Rate cuts will continue to 'juice this bull market': Strategist
US stocks (^DJI,^GSPC, ^IXIC) are losing some steam after the S&P 500 notched its 41st record-high close of the year. However, Carson Group chief market strategist Ryan Detrick believes the post-rate-cut rally is here to stay. He joins Morning Brief to lay out his case. Detrick believes that the Federal Reserve should have cut interest rates before September, explaining, "Inflation is last year's problem. So we don't need interest rates over 5% right now." While the labor market is slowing, he notes that initial jobless claims hit a four-month low last week. "So are things perfect? No. Is the economy slowing down? Yes. Are we going into a recession? No, we don't think so. And we think these rate cuts are going to continue to kind of juice this bull market, honestly help this economy going forward," he tells Yahoo Finance. He highlights that the Federal Reserve has cut rates when the S&P 500 was near all-time highs. In 1980, the Federal Reserve cut interest rates 20 times within 2% of the index's all-time high. "Are we going to have two back-to-back 20% years? It's looking like it. Will we have three? Probably not. But at the same time, double-digit returns this time into next year if the economy hangs in there, we think it's possible," Detrick argues. He adds that small- and mid-cap stocks historically outperform when the Fed kicks off its rate-cutting cycle, and believes that investors could see 20% returns this time next year. Thus, he encourages investors to have diversified portfolios and rebalance every three to six months. He explains, "Don't always chase a shiny object... We've been neutral technology most of this year. Three, four months ago, people thought we were crazy to say that. There are some really stretched valuations in technology, doesn't mean we don't like it. Again, we're neutral, but there's some other areas like financials (XLF), like industrials (XLI), small caps (^RUT), mid caps (^RUI), that are pretty cheap historically, and those areas we're overweight." With the presidential election just a month and a half away, Detrick warns that October will be a volatile month. He notes that markets do not like uncertainty, thus, it will likely stabilize after the election. He adds, "The good news for investors out there, November historically is very strong in an election year, and December is too. So if we get some rockiness in October, that's OK." For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Melanie Riehl
- Yahoo Finance Video
401(k) investing, food price inflation, holiday shopping: Wealth!
On today's episode of Wealth!, Host Brad Smith breaks down key personal finance stories, from anticipated interest rate cuts to a lookahead to the holiday shopping. Traders have been pricing in a 25-basis-point interest rate cut from the Federal Reserve at its September meeting next week. Crescent Grove Advisors co-chief investment officer Andrew Krei notes that the labor market has been increasingly in focus since July's jobs report saw the unemployment rate hit 4.3%, sparking fears of a recession. However, he believes that the labor market data shows the economy "softening off of an ultra-hot level" rather than indicating the beginnings of a recession. According to new data from Fidelity, there are now almost half a million 401(k) plan participants with balances of at least $1 million in their accounts. UBS financial advisor Tracy Byrnes encourages retirement savers to not "set it and forget it," and explains the importance of revisiting a retirement account to rebalance and diversify. She warns, "What was good when you started working 20 years ago might not still work today." The latest Conference Board Consumer Confidence Survey shows Americans are still under pressure from high prices, as necessities like food are straining budgets and wallets. Former USDA economist and Cal Poly professor of agribusiness Richard Volpe explains that in 2021 and 2022, "we saw food prices increase at a clip that we hadn't seen in the US since the 1970s." He notes that while inflation has cooled across the board, food prices have not fallen. As the holidays are right around the corner, retail sales are likely to increase between 2.3% and 3.3% from 2023, according to Deloitte's annual holiday retail forecast. Deloitte Consulting retail and consumer products leader Michael Jeschke believes that retailers with omnichannel approaches will likely outperform this holiday season, expecting a 7% to 9% acceleration as they "are best able to meet consumers where they are." This post was written by Melanie Riehl
- Yahoo Finance Video
US economy is in 'middling' phase as Fed fights inflation
US market averages (^DJI, ^IXIC, ^GSPC) closed Monday's session higher after last week's sell-off. NorthEnd Private Wealth CIO Alex McGrath joins Market Domination Overtime to discuss the state of the market ahead of the Federal Reserve's first interest rate cut. "We're coming off the back end of a pretty long inflation battle here with rates being at historic peaks. And, you know, you look at the underlying macro data that we're staring at every day, and it's not exceptional, but it's not bad either. It's just kind of in this middling phase. And certainly a much better start to this week than we had last week," McGrath explains. He argues that the Fed's cuts will not immediately come to the rescue as its cuts will likely "take time to work through." He adds, "I don't think you have to look much further than a lot of the numbers we've seen from the consumer discretionary companies, where they're slashing forecast because the demand just isn't there like it has been. And that's not entirely surprising." While inflation is down, he argues, "the problem is there's 20 to 30% built up in there that's still increasing on a month-over-month basis. And it's just the consumer's got to get tapped out at some point. And I'm not saying that's like a death and destruction phase coming, but you are starting to see inklings of that." However, easing rates should help counter that issue. Moving forward, McGrath believes the equities market "could be a bit rocky," so investors should take more of a defensive approach and take a position in sectors like industrials (XLI), utilities (XLU), healthcare (XLV), real estate (XLRE), and consumer staples (XLP). He also recommends semiconductors, calling them "the new industrial." On the fixed-income side, he argues that "it's probably time to start taking some duration there" as the Fed kicks off its rate easing cycle. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Melanie Riehl
