Key Points There was no news out on the home flipper, but the volatility in the stock continued. Investors looked forward to the Federal Reserve rate decision. CEO Kaz Nejatian had his first day on the job. 10 stocks we like better than Opendoor Technologies › Shares of Opendoor Technologies (NASDAQ: OPEN) were moving higher today, even as there was no news out on the volatile online home flipper. Instead, investors seemed to be looking forward to Wednesday's rate decision from the Federal Reser ...

Core Viewpoint - A tug-of-war is occurring in the $29 trillion Treasury market, driven by investor concerns over labor market weaknesses potentially leading to significant interest rate cuts by the Federal Reserve, contrasted with fears that the central bank's battle against inflation is not yet resolved [1] Group 1 - Investors are divided between those fearing labor market issues could prompt the Federal Reserve to cut interest rates dramatically [1] - There is a prevailing concern among some investors that the Federal Reserve's efforts to combat inflation have not yet succeeded [1]

LIVE Dow Set to Open Up as Market Focuses on the Fed Last Updated: 1 hour ago Investors Bet on Rate Cuts as Fed Meeting Looms By George Glover Investors are convinced the Federal Reserve is going to cut interest rates when it announces its next policy decision on Wednesday. The only uncertainty is about the size of the cut. Traders are pricing in a 94% chance of a quarter-point reduction and a 6% chance of a half-point cut, according to the CME FedWatch tool. The market is betting that the Fed will continue ...

Options markets are pricing in a 0.78% move for the US nonfarm payrolls report Oct. 3 and 0.72% for Wednesday’s Fed rate decision, according to Citigroup Inc. Even as the Federal Reserve meeting and $5 trillion quarterly triple-witching options expiry loom over the equity market, volatility traders are also circling the upcoming jobs data on their calendars. Most Read from Bloomberg The Fed is expected to cut interest rates on Wednesday and quarterly equity options on stocks, exchange-traded funds and in ...

Group 1 - The Federal Reserve is expected to cut interest rates due to weak labor market data despite persistent inflation, with a 25 basis points cut anticipated during the upcoming policy meeting [1][3][4] - Consumer prices increased by 0.4% in August, up from a 0.2% rise in July, indicating ongoing inflationary pressures [1] - Weekly jobless claims rose to 263,000, the highest level in nearly four years, reflecting a slowdown in the labor market [1][5] Group 2 - Wall Street strategists highlight the complexity of the Fed's decision-making process, balancing the dual mandate of full employment and price stability amid a slowing job market and sticky inflation [2][3] - There is a 76% probability priced in by investors for three rate cuts by the end of the year, although caution is advised due to the underlying economic data [4] - A recent jobs revision indicated that the US employed 911,000 fewer people than previously reported, underscoring the labor market's slowdown [5]

Group 1 - The bond market, particularly long-term bond yields, is a critical indicator for mortgage rates, influenced by expectations of Federal Reserve interest rate cuts and recession risks [1][3] - The 30-year fixed mortgage rates recently reached their lowest level since 2024, recorded at 6.29% [2] - Following the release of a disappointing government jobs report, 10-year Treasury yields decreased by 0.09 percentage points, leading to a 0.16 point drop in the 30-year fixed-rate tracker [3] Group 2 - The rapid changes in mortgage rates are linked to the dynamics of mortgage-backed securities, which pool various mortgage loans [4] - Standardized 30-year fixed-rate mortgages, often backed by Fannie Mae or Freddie Mac, are typically sold into the mortgage-bond market, categorized in half-point coupon levels [5] - As future interest rate expectations decline, bond investors are inclined to pay more for lower-coupon bonds, resulting in better pricing for mortgage originators [6] Group 3 - Higher-rate mortgages are more likely to be refinanced early, posing a reinvestment risk for bondholders who prefer bonds with lower payouts but longer durations [7]

Industry Overview - Cement is a crucial material in the construction industry and serves as an essential indicator of economic growth, with demand increasing during infrastructure expansion efforts [1] - The US construction materials sector has risen over 23% this year, outperforming the S&P 500, which is up about 12% [1] Market Outlook - Analysts at JPMorgan predict continued momentum in the US construction and materials sector into the second half of the year and through 2026, with a 15% upside potential for sector stocks and a 20% gain for pure US construction stocks [2] - Increased construction volumes are anticipated in the latter half of the year, with 2Q likely being the trough for softer demand trends [2] - Interest rate cuts by the US Federal Reserve are expected to enhance affordability for home purchases and construction projects, further boosting demand for cement [2] Long-term Trends - Factors such as increasing urbanization, infrastructural development, and a shift towards sustainable building practices are expected to support the long-term outlook for cement stocks [3] Company Analysis: CEMEX, S.A.B. de C.V. - CEMEX is identified as one of the best cement stocks to buy, with a stock upside potential of 5.99% and 18 hedge fund holders [8] - The stock's price target was raised to $10 and $8.60 by BofA Securities, reflecting an updated discounted cash flow analysis based on 2026 projections [8] - CEMEX has seen a 53% increase in stock performance over the past six months, attributed to aggressive cost-saving measures and a focus on generating free cash flow [9] - The new CEO is committed to improving the company's return on invested capital and plans to invest $2 billion in disciplined mergers and acquisitions for growth opportunities [10] - CEMEX aims to provide innovative and sustainable building solutions, focusing on carbon neutrality and resource management [11] Company Analysis: James Hardie Industries PLC - James Hardie is recognized as a top cement stock with a stock upside potential of 36.96% and 32 hedge fund holders [12] - The company renewed its partnership with Green Brick Partners, enhancing collaboration in fiber-cement siding and exterior design solutions through 2028 [12][13] - This exclusive agreement positions James Hardie's products as the preferred choice for new Green Brick projects, reinforcing their commitment to quality and innovation [13][14] - James Hardie is a leader in high-performance building materials, known for its durable fiber cement siding and a range of other exterior and interior solutions [14]

Economic Reports and Central Bank Decisions - Several economic reports from China, inflation data from Japan, the UK, and Israel, Swiss export figures, and a credit ratings review of Italy are expected to be highlights in the upcoming week [1] - Central banks in major economies, including Indonesia, Brazil, and South Africa, are anticipated to maintain a watchful stance without changing rates [1][2] US and Canada - The Federal Open Market Committee (FOMC) is expected to cut rates by 25 basis points, influenced by market expectations and political pressures rather than economic data [3][4] - Retail sales in the US are forecasted to rise by 0.3% in August, following larger gains in previous months [6] - The Bank of Canada is likely to cut its benchmark overnight rate to 2.5% amid dismal jobs data and economic contraction [8] Asia - China will release a range of economic data, including retail sales and industrial output, to assess the impact of targeted support on demand [10] - The Bank of Japan is expected to leave rates unchanged, with attention on potential future hikes as inflation remains high [13] Europe, Middle East, and Africa - UK inflation data is expected to remain at 3.8%, with the Bank of England likely to keep its key rate on hold at 4% [14] - The European Central Bank will host a conference with potential comments from policymakers following recent rate decisions [16] - Credit assessments for key euro-area borrowers, including Italy and Greece, are scheduled, with Swiss export numbers gaining significance amid trade negotiations [17] Latin America - Brazil's GDP-proxy data is expected to show a decline in economic activity as it heads into the second half of 2025 [19] - Angola and Ghana are anticipated to cut their key rates to support their economies as inflation cools [19] - In Argentina, economic forecasts are being revised downward following poor electoral results, with key economic data releases expected [22]

Group 1 - Dogecoin experienced a significant increase of 7.8% in value within 24 hours, coinciding with a stable S&P 500 and a 0.4% gain in the Nasdaq Composite [1] - The anticipation of lower interest rates, driven by a weakening job market and inflation concerns, is contributing to the rise in Dogecoin and other high-risk assets [2] - Two successful crypto-related IPOs, Figure Technology Solutions and Gemini Space Station, have bolstered market confidence in crypto investments [3][4] Group 2 - Dogecoin is characterized as a meme coin, with its value driven by market sentiment rather than utility, leading to high volatility [5] - Analysts suggest that there are better investment opportunities than Dogecoin, highlighting a list of top stocks that could yield significant returns [6][8]

The Federal Reserve is almost certain to lower interest rates in the coming week, kicking off an easing cycle. The main beneficiary: Uncle Sam. ...