It was a solid session with the S&P 500 +0.4% led by Consumer Discretionary (XLY) and Materials (XLB).  However, like yesterday’s session, it had a defensive tone overall.

After a crazy swoon and an equally crazy rebound, the Fear & Greed Index is smack dab in the middle.

The Jobs Illusion

There were 818,000 jobs removed from the official tally in the twelve months to March 2024. At the last Federal Open Market Committee (FOMC) gathering, members openly worried about the veracity of labor statistics.

Breadth

Market breadth was more bullish than the overall gain in the S&P 500, as advancers and new highs soared above decliners and new lows.

Market Breadth	NYSE	NASDAQ
Advancers	2,101	2,973
Decliners	715	1,224
New Highs	161	176
New Lows	17	69
Up Volume	1.79 billion	3.19 billion
Down Volume	702.55 million	1.07 billion

Summer Volume

The session was light in volume, with some of the biggest names in the market. However, significant volume spikes are essential to note, especially when a stock is down. The light volume doesn’t raise red flags, but it’s a plus when stocks are trading higher.

Factors & Markets

Growth in all sizes took the lead yesterday. Meanwhile, the iShares Russell 2000 ETF (IWM) and the S&P Small Cap 600 Index (SML) enjoyed the most robust sessions among the various exchanges. There is a search for value in this market and the small-cap area is a treasure hunters’ paradise.

A new survey from Charles Schwab asked what one’s net worth is needed to be considered wealthy. The number edged up to $2.5 million from $2.3 million last year.

Today’s Session

Equity futures pointed higher all morning.  Perhaps the biggest development came from the July Chicago Fed National Activity Index, which came in much worse than expected, coupled with a significant revision in June to -0.09 from the initial read of +0.05. Production and income took it on the chin.

Initial Jobless claims were slightly ahead of consensus. This report is getting too much attention. Employers are not cutting jobs as much as they are cutting hours, and therein lies the dilemma for the Fed in monitoring an economy that is slowing much faster than most “experts” will admit or can even see through the premise of their old-school models.

The cuts are coming; however, after all, the temp workers are being let go.

Comments

$10 mm Charles Haselberger on 8/22/2024 10:23:17 AM

$5M Ron Johnson on 8/22/2024 1:13:55 PM

5M but I think it depends on where you live. 3M in Red states, 7M in Blue states...also who is in charge of our country. If they tax unrealized gains...then we're screwed. Jim on 8/23/2024 3:20:34 PM

Entry level wealth is $3M Jim Shepherd on 8/24/2024 9:32:19 AM

I'm slightly above the current # at about 2.8 for a All in Net worth....im blessed, but don't feel "wealthy" really at all. I feel the numbervfor us is a Min 5M Mike Lerner on 8/27/2024 4:44:50 AM

5 MILLIION Alfred A Durham on 9/4/2024 8:35:56 AM

10 Million Laura on 9/5/2024 5:30:02 PM

At that level at 64. Plan retirement at 70. Feel I can comfortably maintain reasonable standard of living. Certainly no second home, boat, fancy car. 5 Million. Rob Roy on 9/7/2024 3:25:36 PM

$5 million in cash\investments\real estate investments to me is wealthy. Real estate adds a lot to net worth but to me it is the income generated by assets that makes the difference. steve wilkenshoff on 9/9/2024 10:43:07 AM

If I were looking at cash, real estate and investments to be my soul source of income (say $250,000.00 per year), had no debt, and want the value of my net worth to at least keep up with (say 4%) inflation to remain neutral I would say $4 million. Now if I had a million dollars I might realize how little it really is and say 5-10 million. Lewis K Trask on 9/9/2024 2:44:54 PM

Tweet

 

Home | Products & Services | Education | In The Media | Help | About Us | Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.