No Result
View All Result
SUBMIT YOUR ARTICLES
  • Login
Saturday, October 25, 2025
TheAdviserMagazine.com
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal
No Result
View All Result
TheAdviserMagazine.com
No Result
View All Result
Home Market Research Markets

How Fed rate cut hopes clashed with slowing jobs growth

by TheAdviserMagazine
2 months ago
in Markets
Reading Time: 4 mins read
A A
How Fed rate cut hopes clashed with slowing jobs growth
Share on FacebookShare on TwitterShare on LInkedIn


The stock market kicked off the historically tough month of September on a rocky note as Wall Street speculated about the magnitude of the Federal Reserve’s next interest rate decision. Initially, the S & P 500 and Nasdaq hit all-time intraday highs Friday morning as investors digested a slower-than-expected August jobs growth . The weak data bolstered the case for the central bank to cut rates 25 basis points later this month, and as many as two more similar moves before year-end. The 10-year Treasury yield dropped below 4.1% to its lowest level since April. The “bad news is good news trade” was on. Shortly after the open, however, the market reversed lower as those rate cut hopes were overshadowed by concerns about the pace of the slowing labor market. Nonfarm payrolls increased by just 22,000 last month, versus the 75,000 expected, while July was revised up to a still tepid 79,000, and June was revised to show a loss of 13,000. While the S & P 500 and Nasdaq each closed Friday’s session slightly lower, both still managed to post gains of nearly 0.3% and more than 1%, respectively, for the week. .SPX .IXIC 5D mountain S & P 500 and Nasdaq 1 week Jim Cramer was not bothered by the market swings, saying Club name Home Depot is about to go even higher. “That’s what you buy right here, right now,” he said on Friday. Lower borrowing costs should be a catalyst for Home Depot shares because its business is heavily tied to a recovery in the housing sector. Home Depot stock has already been on the upswing since mid-June as rate cut expectations ramped up through the summer. Jim thinks the bond market might actually cooperate this time when the Fed starts cutting rates again — unlike last year, when bond yields, and subsequently mortgage rates, rose after 100 basis points of Fed rate cuts. So far, it looks promising, with the national average on a 30-year fixed-rate mortgage dropping by 16 basis points to 6.29%, its biggest single-day drop in more than a year. It wasn’t just monetary policy on the minds of investors. Corporate earnings were, too, including two of our holdings: Salesforce and Broadcom . The biggest earnings story of the week was Broadcom. Shares of the custom chipmaker gained over 9% on Friday after a blowout quarter the night before. Wall Street celebrated Broadcom’s upbeat guidance, CEO Hock Tan’s revelation about $10 billion in custom AI-related orders from a new customer, which analysts speculated might be OpenAI, and Tan saying he’s staying on as CEO “at least” through 2026. For the week, Broadcom was our biggest gainer, up 12.6%. AVGO YTD mountain Broadcom YTD “Broadcom’s great quarter, solid guide, and the CEO remarks on the call all pointed to sustained strong demand for artificial intelligence semiconductors and networking solutions, housed in the company’s AI solutions segment,” Zev Fima, a portfolio analyst for the Club, wrote in Thursday evening’s earnings analysis. “VMWare, the software giant Broadcom bought for $69 billion nearly two years ago, continues to power the company’s infrastructure software segment.” The Club raised its Broadcom price target to $350 from $290, and reiterated our hold-equivalent 2 rating . On Friday, Zev summed it up : “Taken together, it’s clear that despite all the hoopla about an artificial intelligence spending bubble, we’ve not yet seen the peak in AI demand when it comes to the real-deal players in the space.” Salesforce released a better-than-expected second-quarter report Wednesday evening. Although the company posted a beat on the top and bottom line, worries about a soft third-quarter revenue guide weighed on shares after the release. The stock dropped nearly 5% on Thursday but recovered more than half that on Friday. For the week, it lost just over 2%. CRM YTD mountain Salesforce YTD On earnings night, the Club lowered our price target to $300 from $350 due to the ongoing concerns around Salesforce’s growth trajectory. We did, however, maintain our 2 rating on the stock. After all, Salesforce’s suite of AI tools, dubbed Agentforce, could still boost topline performance, and management’s cost discipline could help margins over time. “However, the results here aren’t enough to silence the bears who believe the traditional seat-based software-as-a-service business model has peaked and is being disrupted by advancements in AI. It’s disappointing to continue to wait, but we’re not ready to jump ship on this small position just yet with the stock trading at 22 times forward earnings.” Jeff Marks, director of portfolio analysis for the Club, wrote in Wednesday evening’s earnings analysis. Also, in tech news, Apple investors received great news this week, which pushed the Club stock up more than 3%. That’s all because of a favorable ruling in Alphabet’s landmark Google Search antitrust case. Shares of the iPhone maker were on a tear after a federal judge ruled late Tuesday that Alphabet can keep making payments to preload Google Search onto Apple’s flagship devices. AAPL YTD mountain Apple YTD Jim thinks the ruling could unlock billions of additional revenue for Apple. Not only can Apple keep receiving the once estimated $20 billion each year in payments for its Google agreement, but it also opens the door for the tech behemoth to consider similar deals with large language model providers. As in, Apple could get paid for driving traffic to various AI chatbots within its ecosystem. This would be a sizable boost to Apple’s high-margin Services unit, which includes the App Store, Apple TV+, Apple Music, iCloud, and more. “That bot company will have to pay Apple because it’s legal,” Jim said during CNBC’s “Mad Money” on Tuesday. “What a turn of events. Maybe it’s another $20 billion headed Apple’s way. Maybe [it’s] more.” Jim also reiterated his long-held “own, don’t trade” thesis on Apple stock. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.



Source link

Tags: clashedcutFedgrowthhopesJobsrateslowing
ShareTweetShare
Previous Post

Should You Ever Add a Friend to Your Utility Bills?

Next Post

Are You Giving Away More Personal Info Than You Realize at the Pharmacy?

Related Posts

edit post
Popular investing strategy losing appeal with stocks at record finding

Popular investing strategy losing appeal with stocks at record finding

by TheAdviserMagazine
October 25, 2025
0

Passive investing through exchange-traded funds may be losing its appeal.Tidal Financial Group Chief Revenue Officer Gavin Filmore finds many of...

edit post
Starboard aims to unlock the value of Fluor’s investment in nuclear tech company NuScale

Starboard aims to unlock the value of Fluor’s investment in nuclear tech company NuScale

by TheAdviserMagazine
October 25, 2025
0

Company: Fluor Corp (FLR)Business: Fluor is a holding company that provides engineering, procurement, construction, fabrication and modularization, and project management...

edit post
Meta Platforms to report Q3 earnings on October 29. Here’s what to expect

Meta Platforms to report Q3 earnings on October 29. Here’s what to expect

by TheAdviserMagazine
October 24, 2025
0

When Meta Platforms, Inc. (NASDAQ: META) reports its third-quarter results, investors will be looking for updates on the trajectory of...

edit post
2 of the Best Aldi Finds Available Right Now (While They Last)

2 of the Best Aldi Finds Available Right Now (While They Last)

by TheAdviserMagazine
October 24, 2025
0

Sharkshock / Shutterstock.comLoyal Aldi shoppers know it well — the legendary “Aisle of Shame.” The affectionate nickname is a nod...

edit post
Estee Lauder (EL) Earnings Preview: Sales and earnings anticipated to see a pickup in Q1 2026

Estee Lauder (EL) Earnings Preview: Sales and earnings anticipated to see a pickup in Q1 2026

by TheAdviserMagazine
October 24, 2025
0

Shares of the Estée Lauder Companies Inc. (NYSE: EL) were up over 2% on Friday. The stock has gained 12%...

edit post
What Real Estate Investors Miss About Short-Term Capital

What Real Estate Investors Miss About Short-Term Capital

by TheAdviserMagazine
October 24, 2025
0

In This Article This article is presented by Connect Invest. Many real estate investors obsess over IRR and cap rates,...

Next Post
edit post
Are You Giving Away More Personal Info Than You Realize at the Pharmacy?

Are You Giving Away More Personal Info Than You Realize at the Pharmacy?

edit post
3 execs reveal their go-to hiring question

3 execs reveal their go-to hiring question

  • Trending
  • Comments
  • Latest
edit post
77-year-old popular furniture retailer closes store locations

77-year-old popular furniture retailer closes store locations

October 18, 2025
edit post
Pennsylvania House of Representatives Rejects Update to Child Custody Laws

Pennsylvania House of Representatives Rejects Update to Child Custody Laws

October 7, 2025
edit post
What to Do When a Loved One Dies in North Carolina

What to Do When a Loved One Dies in North Carolina

October 8, 2025
edit post
Probate vs. Non-Probate Assets: What’s the Difference?

Probate vs. Non-Probate Assets: What’s the Difference?

October 17, 2025
edit post
California Attorney Pleads Guilty For Role In 2M Ponzi Scheme

California Attorney Pleads Guilty For Role In $912M Ponzi Scheme

October 15, 2025
edit post
Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

Baby Boomers Are Flocking to This Florida Town — but Not for the Weather

October 9, 2025
edit post
Health Literacy Month: Making Care Understandable, Equitable, and Accessible

Health Literacy Month: Making Care Understandable, Equitable, and Accessible

0
edit post
Oral argument live blog for Wednesday, November 5

Oral argument live blog for Wednesday, November 5

0
edit post
Scale AI Veteran Bilal Abu-Ghazaleh Launches 1001 With  Million To Rebuild The Physical World Through Artificial Intelligence

Scale AI Veteran Bilal Abu-Ghazaleh Launches 1001 With $9 Million To Rebuild The Physical World Through Artificial Intelligence

0
edit post
Food Inflation: The Price Spikes of Beef, Coffee, Eggs, and Dairy

Food Inflation: The Price Spikes of Beef, Coffee, Eggs, and Dairy

0
edit post
8 Retirement Lessons From Legendary UCLA Coach John Wooden

8 Retirement Lessons From Legendary UCLA Coach John Wooden

0
edit post
Polymarket Confirms Token Airdrop, But US Launch Is Priority — Details

Polymarket Confirms Token Airdrop, But US Launch Is Priority — Details

0
edit post
Scale AI Veteran Bilal Abu-Ghazaleh Launches 1001 With  Million To Rebuild The Physical World Through Artificial Intelligence

Scale AI Veteran Bilal Abu-Ghazaleh Launches 1001 With $9 Million To Rebuild The Physical World Through Artificial Intelligence

October 25, 2025
edit post
Polymarket Confirms Token Airdrop, But US Launch Is Priority — Details

Polymarket Confirms Token Airdrop, But US Launch Is Priority — Details

October 25, 2025
edit post
China’s rare earth limits may have ‘gone too far this time’ as US trade talks start

China’s rare earth limits may have ‘gone too far this time’ as US trade talks start

October 25, 2025
edit post
China’s rare golden monkeys debut at European zoos, possible successor to ‘panda diplomacy’

China’s rare golden monkeys debut at European zoos, possible successor to ‘panda diplomacy’

October 25, 2025
edit post
Why Southwest stock is down while American Airlines is soaring

Why Southwest stock is down while American Airlines is soaring

October 25, 2025
edit post
White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

October 25, 2025
The Adviser Magazine

The first and only national digital and print magazine that connects individuals, families, and businesses to Fee-Only financial advisers, accountants, attorneys and college guidance counselors.

CATEGORIES

  • 401k Plans
  • Business
  • College
  • Cryptocurrency
  • Economy
  • Estate Plans
  • Financial Planning
  • Investing
  • IRS & Taxes
  • Legal
  • Market Analysis
  • Markets
  • Medicare
  • Money
  • Personal Finance
  • Social Security
  • Startups
  • Stock Market
  • Trading

LATEST UPDATES

  • Scale AI Veteran Bilal Abu-Ghazaleh Launches 1001 With $9 Million To Rebuild The Physical World Through Artificial Intelligence
  • Polymarket Confirms Token Airdrop, But US Launch Is Priority — Details
  • China’s rare earth limits may have ‘gone too far this time’ as US trade talks start
  • Our Great Privacy Policy
  • Terms of Use, Legal Notices & Disclosures
  • Contact us
  • About Us

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Home
  • Financial Planning
    • Financial Planning
    • Personal Finance
  • Market Research
    • Business
    • Investing
    • Money
    • Economy
    • Markets
    • Stocks
    • Trading
  • 401k Plans
  • College
  • IRS & Taxes
  • Estate Plans
  • Social Security
  • Medicare
  • Legal

© Copyright 2024 All Rights Reserved
See articles for original source and related links to external sites.