My Stock/Market Alert is an event driven brief about a stock OR the stock market when noteworthy action occurs. Today was certainly noteworthy… as the quote above says, it was “Just an astounding day for stocks.”
Expect the frequency of my Stock/Market Alert notes to be consistent with meaningful moves in a specific stock held by BAM Portfolios or the stock market.
I could not think of a better way to some it up. With the sound of today’s stock market closing bell, I heard a market journalist say, “It was just an astounding day for stocks.” It was indeed! The Nasdaq had it’s best day since early February. In the broad market, 1,295 stocks rose on higher than usual volume, while only 66 fell on high volume. The small cap Russell index rose nearly 3 percentage points more than the Nasdaq’s 2.37% – one of the few times that has happened in history was following the stock market crash in October of 1987.
One little surprise economic number caused a big stock market reaction. Today’s less-than-expected inflation data with the CPI sent stocks soaring and bond yields stumbling.
Lower inflation, higher equity prices? It appears so. Again, today’s big stock market gains came on the weak, lighter-than-expected inflation in the U.S. Consumer prices were flat in October vs. the prior month. Plus, core prices, which exclude energy and food, rose 4% year over year, slightly below consensus view for a 4.1% gain. The inverse relationship between inflation and the stock market has been a repeated theme since early 2022. Last year’s bear market was on of the worst for growth stocks, sparked by rapidly rising inflation. The tide has turned.
Earnings matter, too. Wall Street sees earnings rising 60% this year to $3.64 a share for the SP 500 and up another 19% in 2024. The combo deal of strong earnings and tame inflation make for an appetizing stock market for investors.
Call anytime you have questions. I am always happy to help.
Blackhawk Wealth Advisors is the parent corporation of Equity Research & Portfolio Evaluation and Blackhawk Asset Management. It’s Chief Investment Officer is John J. Gardner. John is a Certified Financial Planner (CFP®) and Certified Portfolio Manager (CPM®)
Blackhawk Wealth Advisors employs a collaborative, multi-generational model by using tax efficient and risk mitigation strategies to maintain your current lifestyle while meeting your long term needs and goals. BWA brings together all aspects of your financial life with the expertise of ERPE and BAM.
Blackhawk Asset Management
At BAM, we take the research we obtain from ERPE and utilize it to manage our clients’ assets. Our founder, John Gardner, CFP®, CPM®, offers high net worth investors experienced investment portfolio management based on a disciplined methodology. John is one of the nation's approximately 400 Certified Portfolio Managers and has managed billions of dollars in equity portfolios over his professional career since 1984. He has created four effective, proprietary portfolios: Thematic Growth, Strategic Income, Diversified Value, and Global Opportunity, which have helped clients prosper.
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Equity Research & Portfolio Evaluation
Equity Research & Portfolio Evaluation (ERPE) utilizes its propietary approach in analyzing investments. Its proven success researching equities is based on a blend of fundamental and technical analysis. ERPE's time-tested Top 10 Tenets guide the investment process to achieve Portfolio Optimization: This is through minimizing risk without sacrificing return.
