Stock Indexes Consolidate Below Record Highs Before Fed Chair Powell Speaks

Corporate Earnings - More than 22% of S&P 500 companies provided guidance for Q3 earnings that are expected to beat analysts' expectations, the highest in a year [1] - S&P companies are expected to post +6.9% earnings growth in Q3, an increase from +6.7% at the end of May [1] Federal Reserve and Economic Indicators - Fed Governor Michelle Bowman emphasized the need for decisive action from the FOMC due to deteriorating labor market conditions [2] - The US September S&P manufacturing PMI fell -1.0 to 52.0, weaker than the expected 52.2 [2] Current Account and Gold Prices - The US Q2 current account balance was -$251.3 billion, better than the expected -$256.6 billion [3] - Gold prices reached a new all-time high, up more than 1%, driven by dovish global central banks and geopolitical risks [3] Stock Market Performance - The Dow Jones Industrials posted a new all-time high, while the S&P 500 and Nasdaq 100 are consolidating after recent rallies [3] - Energy producers are performing well, with WTI crude oil prices up more than 1% [12] Stock Movers - Firefly Aerospace (FLY) is down more than -13% after reporting Q2 revenue of $15.5 million, below the consensus of $16.1 million [10] - Vistra Corp (VST) is down more than -4% following a downgrade by Jeffries [10] - Halliburton (HAL) is up more than +5% as energy producers gain [12] - Kenvue (KVUE) is up more than +6% after controversy surrounding Tylenol [13] Economic Data and Forecasts - August new home sales are expected to decline by -0.3% m/m to 650,000 [5] - August core capital goods new orders are expected to slip -0.1% m/m [5] - The markets are pricing in a 91% chance of a -25 bp rate cut at the next FOMC meeting [6]