Last week’s shortened trading marked a mixed kickoff to September. The S&P 500 rose 0.3%, while the Dow slipped 0.3%. The NASDAQ, meanwhile, jumped nearly 2%.
The main culprit for the weakness was the dismal jobs report on Friday. The latest unemployment report showed only 22,000 jobs were added in August, and the unemployment rate rose to 4.3%. That’s down from the 73,000 jobs created in July. Economists were looking for 75,000 jobs in August.
Adding to the weakness last week, bond vigilantes shook the market and sent yields spiking in Britain and France on budget stress. That pressure rippled briefly into the U.S., but domestic yields have eased back a bit.
This week, stocks are attempting to regroup before we get the latest inflation reports midweek.
On Wednesday morning, the Producer Price Index (PPI) will be released. Economists are looking for a 0.3% increase in August, compared to a 0.9% bump in July.
Then, on Thursday morning, the Consumer Price Index (CPI) numbers will also drop. Economists expect an increase of 0.3% in August, or 2.9% year-over-year, compared to 0.2% in July – or 2.7% year-over-year.
These are the last inflation reports before the Federal Reserve’s meeting next week. As you know, I am expecting a key interest rate cut during this meeting. I discussed why in this week’s Navellier Market Buzz. We also touched on the latest data from the Institute for Supply Management (ISM), tackled some subscriber questions and previewed reports from a couple of companies as we wrap up earnings season.
Click the image below to watch now.
Now, here’s something else you may find interesting… I recently performed my quarterly back test of my Stock Grader system (subscription required) and my 8-factor fundamental model.
What I found is that fundamentally superior stocks continue to rise to the top. Although the breadth and power of the stock market has improved, mean reversion algorithms have actually tightened the breadth and power of the overall stock market.
So, the latest back test confirmed that the top 25% of stocks in Stock Grader and the top 15% of stocks in my 8-factor fundamental model remain the best places to invest.
In other words, it’s imperative you own fundamentally superior stocks. And that’s why I was excited to learn that my friend and colleague Eric Fry is ready to roll out a computerized system of his own…
Here’s what I find so interesting about this. Eric is what you’d call a “macro” expert. He focuses on big themes and trends, and then drills down during his research to find the best plays for investors.
He’s also one of the best “contrarian” minds in the market.
Put it all together, and Eric’s track record speaks for itself, having already delivered 41 different recommendations that have soared 1,000% or more.
But now, he’s distilled all of his experience into a computerized system he calls Apogee.
It’s designed to spot when a beaten-down stock is about to enter the rare “10X Pattern.”
And during the five years of testing this system across 14,000 stocks and 31 years, Apogee delivered a whopping 308% average gain on winners and had a 72% win rate.
In short, Eric has pulled off something really impressive – using a systematic approach to capture the way he invests.
And here’s the best part: You can get the names and tickers of five fresh 10X opportunities Apogee has uncovered right now – for free.
All you have to do is join Eric for his 10X Breakthrough event on Wednesday at 10 am Eastern.
If you’re serious about finding the next market winners, you’ll want to hear what Eric has to say.
Go here to secure your spot now.
Sincerely,
Louis Navellier
Editor, Market 360
