{"id":2472532,"date":"2023-09-06T13:19:33","date_gmt":"2023-09-06T17:19:33","guid":{"rendered":"https:\/\/www.valuewalk.com\/?p=2472532"},"modified":"2023-09-06T13:19:36","modified_gmt":"2023-09-06T17:19:36","slug":"the-magnificent-7-are-pulling-down-the-rest-of-the-market","status":"publish","type":"post","link":"https:\/\/www.valuewalk.com\/the-magnificent-7-are-pulling-down-the-rest-of-the-market\/","title":{"rendered":"The Magnificent 7 Are Pulling Down The Rest Of The Market"},"content":{"rendered":"\n<p>In his<em> Daily Market Notes<\/em> report&nbsp;to investors,&nbsp;Louis Navellier wrote:<\/p>\n\n\n\n<p>Stocks are not bouncing back from yesterday&#8217;s late pullback. The focus is still on interest rate moves, while higher energy prices put a cloud over inflation trends.<\/p>\n\n\n\n<p>Stocks tried to push into the green, while <a href=\"https:\/\/www.valuewalk.com\/interest-rate-hikes-2023-how-an-interest-rate-hike-affects-your-investments\/\">interest rates<\/a> were modestly lower, after opening slightly in the red, but then interest rates popped and stocks reacted quickly to the downside. The US 10yr closed yesterday at 4.27% and drifted down to 4.24%, but after some new economic news jumped up above 4.30%, bringing back fears of mid-August market lows. The 2yr poked its nose back above 5% too.<\/p>\n\n\n\n<div class=\"ca-widget\" data-token=\"k8f5c9ac62a4\"><\/div><script async defer src=\"https:\/\/secure.money.com\/embeds\/embedder.js?v=1\"><\/script>\n\n\n\n<h2 class=\"wp-block-heading\">Falling Apple<\/h2>\n\n\n\n<p>Of note is that Apple (NASDAQ:AAPL), the 800-lb gorilla, is down $6 today, which is a bit of a surprise given that next week they have their annual &#8220;Event&#8221; to roll out their newest iPhone and other products, and typically rallies into the news. With <a href=\"https:\/\/www.valuewalk.com\/the-reasons-behind-the-unexplained-departure-of-tesla-cfo-shortseller\/\">Tesla<\/a> (NASDAQ:TSLA) down 4% and NVIDIA (NASDAQ:NVDA) down over 3%, the Magnificent 7 is pulling down the rest of the market.<\/p>\n\n\n\n<p>The economic news that seemed to move interest rates, didn&#8217;t appear that profound. The S&amp;P Global Service PMI for August came in slightly below forecast&nbsp;and has been drifting lower since June, the Composite Purchasing Manager was the same, as was the PMI data.<\/p>\n\n\n\n<p>The ISM Non-Manufacturing prices did move noticeably higher, the second month in a row and the highest since April, the PMI was also higher, the highest since April, with new orders the highest since February.&nbsp;Evidently, it was enough to move the bond market, increasing the odds of another Fed increase before&nbsp;year-end. More importantly, it has driven the US dollar Index, touching 105, the highest since March, before pulling back modestly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Sticky Inflation<\/h2>\n\n\n\n<p>In the bigger picture, today&#8217;s economic data appears to confirm the theory for some investors that <a href=\"https:\/\/www.valuewalk.com\/the-reasons-behind-the-unexplained-departure-of-tesla-cfo-shortseller\/\">inflation<\/a> is &#8220;sticky&#8221;, helped along with higher energy prices, and brings doubts about how long the Fed will hold rates above inflation to achieve a steady state at or near 2% inflation. Extending higher rates exposes more maturing debt to rolling over at significantly higher rates, along with very much slowing housing market transactions, a traditional engine of economic activity.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Reprieve on the 20th?<\/h2>\n\n\n\n<p>September is earning its reputation of seasonal weakness early on in this abbreviated week. We may get a reprieve on the 20th when the Fed does nothing as expected, especially if the reason they keep another increase on the table is because the economy is doing so well.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Coffee Beans:&nbsp;Error 404<\/h2>\n\n\n\n<p>A supermarket chain issued a recall for Paw Patrol snacks sold at British stores after it was discovered that a website URL on the packaging leads to explicit content. The website previously led to the homepage of Appy Kids Co., a subsidiary of Appy Food &amp; Drinks, which dissolved in June 2022. Source: UPI. <a href=\"https:\/\/www.upi.com\/Odd_News\/2023\/09\/05\/Lidl-Paw-Patrol-snacks-recalled-explicit-website\/5041693944429\/\" rel=\"nofollow\" target=\"_blank\">See the full story here<\/a>.<\/p>\n ","protected":false},"excerpt":{"rendered":"<p>In his Daily Market Notes report&nbsp;to investors,&nbsp;Louis Navellier wrote: Stocks are not bouncing back from yesterday&#8217;s late pullback. The focus &#8230; <a title=\"The Magnificent 7 Are Pulling Down The Rest Of The Market\" class=\"read-more\" href=\"https:\/\/www.valuewalk.com\/the-magnificent-7-are-pulling-down-the-rest-of-the-market\/\" aria-label=\"More on The Magnificent 7 Are Pulling Down The Rest Of The Market\">Read more<\/a><\/p>\n","protected":false},"author":21886,"featured_media":2452713,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[6640],"tags":[666743,646568,628524,122574,645498],"states":[],"acf":[],"modified_by":"Umair Tariq","_links":{"self":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2472532"}],"collection":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/users\/21886"}],"replies":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/comments?post=2472532"}],"version-history":[{"count":4,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2472532\/revisions"}],"predecessor-version":[{"id":2472540,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/posts\/2472532\/revisions\/2472540"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/media\/2452713"}],"wp:attachment":[{"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/media?parent=2472532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/categories?post=2472532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/tags?post=2472532"},{"taxonomy":"states","embeddable":true,"href":"https:\/\/www.valuewalk.com\/wp-json\/wp\/v2\/states?post=2472532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}