It was just the other day when the conventional wisdom was that the Federal Reserve had turned the corner and more rate cuts were effectively a lock. Not anymore: Here’s your Evening Briefing https://t.co/M8yJMSRXe3 ...

Welcome back. Major indices rebounding off those session lows at the open this morning, trying to save off some back-to-back weekly losses. Should we be treating this as a buying opportunity.Joining us this morning, Wilmington Trust chief investment strategist Megan Shu is with us. Help make some sense of this Friday. Megan, what is your sense about where we are and what needs to happen to bring more stability, get that VIX a little bit lower.Um, yeah, Carl, I think actually in the short term, a little bit ...

Group 1: Market Dynamics - The Federal Reserve is perceived to be "flying blind" regarding interest rate decisions, with evidence of a weakening job market but lacking corroborative data to justify rate cuts [1][2] - The market has adjusted expectations for a December rate cut, dropping from a 68% chance to 50%, indicating skepticism about immediate monetary easing [3] - The recent sell-off in the market, with the Dow down 756 points, is attributed to the slower-than-expected path of interest rate reductions [4] Group 2: Investment Opportunities - There is approximately $6 trillion in cash on the sidelines earning less than 4%, which may eventually flow back into the market, particularly in sectors that are currently undervalued, such as healthcare [6] - Financial stocks are viewed as compelling investments, trading at a 15% discount to the S&P, with expectations of improved net interest margins and increased capital market activity due to deregulation [7][8] - Major financial institutions like JP Morgan, Goldman Sachs, Morgan Stanley, and Wells Fargo recently reached record highs, suggesting resilience in the financial sector despite market fluctuations [9]

Core Insights - The experiential economy, which thrived post-pandemic, is showing signs of decline as recent data and earnings reports raise concerns about consumer spending and demand [2][20]. Economic Indicators - The labor market is deteriorating, with an average of less than 30,000 net new jobs per month from June to August, and a recent report indicating an average loss of 11,250 jobs per week in October [3][4]. - Inflation is rising, with the consumer price index increasing from 2.3% in April to 3% in September, leading to uncertainty about future Federal Reserve rate cuts [5][6]. Company Performance - Major players in the experiential economy, such as Chipotle, Cava, and Sweet Green, reported disappointing earnings, with younger customers reducing dining out frequency [8]. - Cruise lines like Royal Caribbean and Norwegian Cruise Line have seen stock declines of 20% and 16% respectively, despite Royal Caribbean raising its full-year earnings forecast [9][10]. - Live Nation's stock dropped over 10% following a miss in earnings, attributed to weaker concert business and profitability from Ticketmaster [11][12]. - Disney's stock fell nearly 8% after reporting a topline miss and a bottom line beat, indicating challenges in its domestic experiences business [15][16]. Market Sentiment - Investor confidence in the experiential economy is waning, with companies no longer receiving the benefit of the doubt despite management's optimistic outlooks [10][11]. - The overall sentiment is increasingly negative, with concerns about the sustainability of the experiential economy amid weaker macro data and disappointing earnings reports [20][21].

Wall Street has its worst day in a month as traders dial back expectations for Fed rate cuts. https://t.co/VEpt3c7uwL ...

Core Insights - Portfolio income is expected to remain crucial for both advisors and investors in the context of recent rate cuts and macroeconomic developments [1] Group 1 - The importance of portfolio income is highlighted as a key focus for the near future [1]

Group 1 - India's consumer inflation cooled to 0.25% in October, which is below the estimated rise of 0.48% and significantly lower than the 1.54% recorded in September [1] - The Reserve Bank of India revised its inflation forecast for the fiscal year ending March 2026 to 2.6% from 3.1% [2] - The central bank maintained its key policy rate at 5% despite the revised inflation forecast [2]

Core Viewpoint - The article discusses the importance of high-yield monthly pay ETFs for investors, particularly those nearing retirement, as a means to generate dependable passive income amidst rising costs [3][4]. Group 1: Investment Opportunities - Investors are increasingly looking for reliable passive income sources, especially as they approach retirement, and ETFs are highlighted as an effective investment vehicle [3]. - The article identifies five top ETFs that provide monthly dividends, which are more appealing than quarterly distributions for income-focused investors [5]. - High-yield ETFs are expected to benefit from recent rate cuts, making them a favorable investment choice for the remainder of 2025 and beyond [4]. Group 2: Specific ETFs Highlighted - **JPMorgan Equity Premium Income (JEPI)**: - Dividend yield: 8.37% paid monthly - NAV: $57.20 - Expense ratio: 0.35% - Assets under management: $39.84 billion - PE ratio: 25.57 [6] - **Global X U.S. Preferred ETF (PFFD)**: - Dividend yield: 6.27% paid monthly - NAV: $19.44 - Expense ratio: 0.23% - Assets under management: $2.29 billion [7][8] - **Global X SuperDividend REIT ETF (SRET)**: - Dividend yield: 8.24% paid monthly - NAV: $21.74 - Expense ratio: 0.58% - Assets under management: $181 million [9][10] - **Invesco KBW High Dividend Yield Financial Portfolio ETF (KBWD)**: - Dividend yield: 12.94% paid monthly - NAV: $13.37 - Expense ratio: 1.24% - Assets under management: $390 million [10][11] - **Global X SuperDividend ETF (SDIV)**: - Dividend yield: 9.72% paid monthly - NAV: $23.38 - Expense ratio: 0.58% - Assets under management: $924.9 million [13][14].

Chip Industry - The chip sector is experiencing a rally, with positive developments noted by analysts, particularly for companies like Sandis, Western Digital, and Seagate [2][6] - Loop Capital has raised its price targets for Western Digital to $250 and Seagate to $190, anticipating growth in hard disk drive demand by 2026 [2] - Barclays has increased its price target for Sandis from $39 to $220, citing better visibility driving growth durability, while also raising Palo Alto's target to $230 from $215 [3] - Seagate's price target at Loop Capital has been raised to $465 from $350, with a buy rating maintained, as demand for higher capacity drives is expected to increase [4] - Sandis is raising NAND flash chip prices by 50% for November, indicating a tighter supply-demand dynamic in the memory market [5] - The supply side is constrained, particularly due to high demand from AI data centers, limiting manufacturers' ability to ramp up production [6] Health Insurance Sector - Health insurance stocks are under pressure, particularly Centine and United Health, following comments from former President Trump regarding federal funding for healthcare [9][11] - Trump proposed reallocating funds from insurance companies under the Affordable Care Act directly to the public, which has negatively impacted health insurers [10][11] - The pressure on health insurers is compounded by the ongoing government shutdown discussions, with potential implications for subsidies that benefit these companies [12] Earnings Reports - Cart's stock is facing pressure after missing both revenue and earnings expectations, with adjusted EPS at $0.42 against a forecast of $0.50 and revenue at $852 million versus an expected $934 million [13] - Despite the revenue miss, orders climbed 14% year-over-year, driven by grocery and restaurant delivery demand, although average order value fell [14] - For the holiday quarter, Cart projects gross transaction value between $9.45 billion and $9.6 billion [14]

The Cleveland Fed president worries more about inflation than a cooling labor market. ...