Live Markets: The Fed's priced in and delivered; your turn earnings

SGH

23/09/2024 18:25

* 
      Main U.S. indexes edge green; Nasdaq out front, up ~0.1%
    

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      Cons Disc leads S&P 500 sector gainers; Healthcare off
most
    

        * 
      Dollar, bitcoin ~flat; gold rises slightly; crude falls
~1%
    

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      U.S. 10-Year Treasury yield edges up to ~3.74%
    

  
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    THE FED'S PRICED IN AND DELIVERED; YOUR TURN EARNINGS
    After dining out for so long on its less-than-patient wait
for the Federal Reserve's first rate cut, the market will now
need to find another source of nutrition.
    Lisa Shalett, chief investment officer and head of the
global investment office at Morgan Stanley Wealth Management,
has some suggestions. 
    While the 50-basis point cut has increased the prospects for
avoiding a hard landing, Shalett writes that "markets have
priced all that and then some." 
    As a result the economy is "in the 'show me' stage for the
soft landing, and the scenario long priced by US equities needs
to evidence itself," she says adding that "market success will
likely hinge increasingly on earnings."
    Under the soft landing scenario, Shalett says that the
Magnificent Seven group of heavyweight stocks "should not have
to carry the profit rebound alone" and a broader group of
companies "will need to deliver double-digit earnings growth
largely from margin gains implicitly dependent on stronger
productivity."
    While there are reasons to be "cautiously optimistic"
Shalett also sees possible obstacles. 
    For example, there are potential headwinds ahead for
"low-end consumers, global manufacturers and others dependent on
traditional rate sensitivity."
    So the CIO suggests keeping a watch on third quarter
earnings and guidance "to confirm market broadening and
rotation."
    
    (Sinéad Carew)
     *****

    
    FOR MONDAY'S EARLIER LIVE MARKETS POSTS:
    
    HEALTHY CRYPTO INFLOWS ON FED-SPURRED RISK-ON RALLY - CLICK
HERE
    
    MULLETS AND MACHINE-LEARNING? TODAY’S ECONOMY HARKENS BACK
TO 1986 - CLICK HERE
    
    FLASH PMI: LOSING SOME OOMPH - CLICK HERE
    
    WALL STREET EDGES UP, FED OFFICIALS SPEAK OUT AFTER CUT -
CLICK HERE
    
    GOLD SHINES BRIGHT, BUT FACES BIG BARRIER ON THE CHARTS -
CLICK HERE
    
    GLOBAL ECONOMY IN "FINAL CHAPTER OF POST-PANDEMIC
ADJUSTMENT" - CITI - CLICK HERE
    
    AUTOS: BRUSSELS SEEN BRINGING CARBON TARGET RELIEF - CLICK
HERE
    
    DRAGHI’S PLAN IS DESIGNED FOR GERMANY – TS LOMBARD - CLICK
HERE
    
    DEFENSIVES HELP THE STOXX, LUXURY DOWN - CLICK HERE
    
    EUROPEAN FUTURES EDGE HIGHER - CLICK HERE
    
    COUNTING ON MORE RATE CUTS CLICK HERE