Joining me now, Sam Stovall, chief investment strategist at CFRA Research. All right, Sam, g give me a sense of how important the rate cut is to your endofear thesis. >> Hey, Contessa, good to talk to you again.Um, I think we heading into November and December, which is by far the best two months, two month stretch uh of the calendar year, not only in terms of average price change, but also in frequency of advance. We also find that the consumer discretionary sector has been the second best performing secto ...

Joining me now, Sam Stovall, chief investment strategist at CFRA Research. All right, Sam, g give me a sense of how important the rate cut is to your endofear thesis. >> Hey, Contessa, good to talk to you again.Um, I think we heading into November and December, which is by far the best two months, two month stretch uh of the calendar year, not only in terms of average price change, but also in frequency of advance. We also find that the consumer discretionary sector has been the second best performing secto ...

Market Overview - The core stock market ETFs, particularly the Semiconductors Sector ETF (SMH) and the Biotechnology Sector ETF (IBB), show optimism similar to the S&P 500, Dow Industrials, and NASDAQ 100, with SMH reaching a new all-time high while IBB remains below its peak from 2021 [1] - The Russell 2000 ETF (IWM) is just below its all-time high established two weeks ago, indicating mixed price action that is more neutral than bullish [3] Sector Performance - The Retail Sector ETF (XRT) and Regional Banks ETF (KRE) are identified as the weakest links among core ETFs [2] - The Transportation Sector ETF (IYT) is barely above the 50-Day Moving Average and has been underperforming relative to the S&P 500 ETF (SPY), indicating a divergence in performance [3][4] - The IYT has been stuck in the middle of the monthly high and low, with two closes above the 50-DMA needed for a positive outlook [5] Economic Drivers - The underperformance of the U.S. Transportation Sector can be attributed to structural, cyclical, and investor-sentiment factors, including weak freight/demand growth and rising operational costs [4][8] - A shift in the economy towards services and digital goods is reducing the growth of heavy goods movement, impacting transportation sector performance [8] - Investor perception of a potential slowdown or mild recession is leading to early discounting of transportation stocks compared to other sectors [8]