Weekly Newsletter 10/04/24

Good afternoon,

The U.S. stock markets traded higher on Friday with nonfarm payrolls beating expectations on reported growth being the highest since March. These reports are a bit overrated in my opinion as they are constantly revised. For instance, in the same report July and August numbers were revised higher by a combined 72,000.

Overall, it was a bit of a choppy week in the markets as the U.S. dockworkers strike, growing tensions in the Middle East, and the impact of Helene provided their own unique headwinds. The dockworkers union and the port alliance kicked the labor dispute can down the road until January 15th. The use and future use of automation noted as a key to the overall labor dispute. "We got to keep fighting automation and semi-automation," union leader, Harold Daggett, told a group of workers during the strike. How many union leaders have said these similar helpless words in history? Suspension of the port strike leaves a cargo backlog which may take up to three weeks to clear.

Middle East tensions ratcheted up further as Iran fired missiles at Israel after Israel launched limited ground invasion into southern Lebanon. Oil rallied as worries about threats to Iranian facilities overshadowed latest (bearish) headlines out of Saudi Arabia (Saudi minister warned of $50 oil if OPEC+ members don't adhere to production cuts).

Fed Chair Powell said Fed does not feel like it is in a hurry to cut rates quickly as data drove big bond yield backup and pushed probability of a 50 bp rate cut in November down to ~5% (from 50%+ just a week ago). The longer end of the rate curve (5year, 10year and 30year yields) have actually gone up since the Fed’s short term rate last month.

Have a great weekend and the link below contains additional financial articles and information.
https://www.raymondjames.com/evangelista/resources

“Compromise is the best and cheapest lawyer.”
Robert Louis Stevenson

Thank you,

Kyle

KYLE CHRISTIANSON, CFP®
Financial Advisor
Raymond James & Associates, Inc.
1421 Pine Ridge Rd, Ste 300
Naples, FL 34109
Toll Free (800) 843-2025 | Direct (239) 513-6525 | Main (239) 513-6500 | Fax (239) 596-5474
Kyle.Christianson@RaymondJames.com

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