XLU Jan 2026 51.000 call
- Yahoo Finance Video
Labor market in focus, port strike looms ahead: Morning Brief
On today's episode of Morning Brief, Hosts Seana Smith and Madison Mills analyze the market open and discuss some of the biggest stories of the trading day. All three of the major indexes (^DJI,^GSPC, ^IXIC) opened slightly lower on the last trading day of the third quarter. While September is a historically weak month for stocks, markets are on track for one of the strongest in over a decade as they rallied on the Federal Reserve's interest rate cut. Envestnet Solutions co-CIO and group president Dana D’Auria notes that while inflation continues to cool, all eyes have now turned to the state of the labor market. D’Auria stresses the importance of the upcoming September jobs data, explaining that employment data will be the "single biggest factor" weighed by the Fed ahead of its next interest rate decision. She argues that the market has been "overshooting on expectations of the Fed pretty substantially and pretty regularly." With some investors are pricing in another 50-basis-point cut in November, she pushes back, saying, "I wouldn't expect more than another 25-25 this year." As markets enter the fourth quarter, growth is visibly expanding beyond the tech sector. Charles Schwab's Director and Senior Investment Strategist Kevin Gordon explains that there isn't a "definitive leadership shift" from tech to defensive sectors. Instead, he observes that utilities (XLU) and related sectors are playing "catch-up" following the AI-driven tech boom. Notably, sectors like industrials (XLI), financials (XLF), and materials (XLB) are outperforming as cyclical parts of the market fare "relatively well." Gordon characterizes this as a broadening of the market rather than a clear-cut leadership change. Ports along the East and Gulf Coasts are bracing for a strike at midnight, as the International Longshoremen's Union is demanding higher pay and protection from automation for its port workers. Margaret Kidd, University of Houston instructional associate professor of supply chain and logistics technology, tells Yahoo Finance that some estimates project that a port strike could cost the US $5 billion per day. She notes that the last port strike was in 1977 and lasted for 45 days. Back then, trade only made up 16% of the US economy. Today, that figure is 28%; therefore, a port strike would be a "huge hit on the economy," Kidd explains. Meanwhile, the Boeing (BA) factory worker strike heads into its third week, with the union reporting talks with the company have broken off. Wall Street analysts have lowered their targets for Boeing stocks, citing costs associated with the strike. This post was written by Melanie Riehl
- Yahoo Finance Video
Top tips for positioning your portfolio, paying taxes: Wealth!
On today's episode of Wealth!, Host Alexandra Canal breaks down key personal finance tips, from balancing your portfolio to preparing to file your taxes. Matt Powers, Powers Advisory Group managing partner, discusses how to best position your portfolio in a rate-easing cycle and an election year. In a lower interest rate environment, Powers focuses on traditional defensive sectors like utilities (XLU), consumer staples XLP (XLP), and financials XLF (XLF), noting that “we still expect some short-term volatility as we enter October, which is historically the most volatile month of the year in election years.” As mortgage rates hit a two-year low, Yahoo Finance's Dani Romero breaks down what it means for potential homebuyers as they navigate the housing market. Meanwhile, Danielle Hale, Realtor.com's chief economist, breaks down the pros and cons between buying now and waiting. "Now we're at that seasonal slowdown sweet spot for buyers. So there's less competition which can make it easier to snag a deal on a home. At the same time, you might see lower rates if you wait into the spring. But you might have to offset those lower rates with more competition and better prices. You know, in essence, I don't think buyers can go wrong either way," she tells Yahoo Finance. In August, LegalShield's Consumer Stress Legal Index ticked up to its highest level since November 2020. In presidential battleground states, stress rose even more, and historically, that elevated battleground stress during October and November has resulted in a Republican White House win. LegalShield SVP of Consumer Analytics Matt Layton explains, "Our index is really made up of three different subindices: The bankruptcy index, foreclosure index, and a consumer finance index. Each of those three individuals are also increasing over the last several months. But when we speak to our lawyers, we hear issues like job security, layoffs — folks are concerned about their jobs. They don't have enough money at the end of the month to pay their bills." If you received a tax extension in April, the due date is October 15 — just over two weeks away. Tom O’Saben, National Association of Tax Professionals director of tax content, notes that it is crucial to pay your taxes on time to avoid any penalties, which could be as much as 5% per month. In addition, failure to pay the penalty could end up being as much as 25% of the tax itself. He warns that the statute of limitations for the IRS to audit a return is unlimited for returns that aren't filed, compared to the normal three-year window. If you don't have the ability to pay your taxes in full, O’Saben explains that the IRS offers both short-term and long-term payment plans. This post was written by Melanie Riehl
- Yahoo Finance Video
Morgan Stanley turns neutral on defensive sectors
Morgan Stanley is out with a new call recommending investors lock in their gains on defensive stocks (XLV, XLU) as they tend to underperform in the month following the Federal Reserve's first interest rate cut. Catalysts Hosts Seana Smith and Madison Mills report more on the call and break down how the upcoming labor market data could impact investors' defensive plays. For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Melanie Riehl
