Weekly Market Recap:

This week, U.S. equities were mostly higher, with the S&P 500 gaining +0.62%, the Dow up +0.59%, and the Nasdaq rising +0.95%. The Russell 2000 underperformed, slipping -0.14%. The S&P 500 reached a new all-time high on Thursday. China’s Heng Seng Index surged +13%, marking its best week in 26 years on stimulus news. Key performers included TSLA (+9.3%) and NVDA (+4.6%), while AMZN (-1.9%) and MSFT (-1.7%) lagged.

Sectors that outperformed included materials (+3.38%), consumer discretionary (+1.75%), and industrials (+1.56%). Energy (-0.82%) and healthcare (-1.12%) were underperformers. Treasury yields mostly increased, the dollar weakened, and gold hit new record highs, up +0.8%. Crude oil prices fell -3.9% amid volatility and concerns over increased Saudi output.

Corporate Highlights:

• MU (+18.2%) beat Q4 expectations with stronger guidance.

• EL (+17.5%) outperformed in the apparel sector.

• AZO (+5.8%) missed on discretionary sales.

• SMCI (-8.2%) faced a DOJ probe.

As port workers from Maine to Texas prepare to strike on Tuesday, the U.S. economy faces a potential disruption not seen in decades. The International Longshoremen's Association (ILA), which represents approximately 50,000 workers, plans to halt operations at 14 port authorities along the East and Gulf Coasts, including major hubs like New York and New Jersey. The strike could stop the flow of essential goods, such as bananas, autos, and industrial parts—vital for keeping U.S. factories running. Currently, longshore workers earn $39 an hour, but the union is demanding a $5 per hour increase annually over the six-year contract, which would lead to a 77% total pay raise. Management, represented by the United States Maritime Alliance (USMX), has countered with an offer of a 40% wage increase over the same period. The wage dispute lies at the heart of the strike threat. If the strike proceeds, nearly 1.2 million metric tons of bananas, over 80% of imported beer, wine, and spirits, and much of the country’s auto imports could be delayed. The halt in supplies needed by manufacturers may lead to factory slowdowns and layoffs. Retailers are rushing to move goods ahead of the strike, with even a single day of disruption potentially requiring five days to recover. Should the strike last weeks, the impact on supply chains could drive up prices, threatening the economy's recovery from pandemic-induced inflation. Consumers are bracing for potential shortages and rising costs across many sectors.

Next Week:

Notable Earnings:

• Monday (9/30)

  • Carnival Corp. ($CCL)

• Tuesday (10/1)

  • Nike Inc. Cl B ($NKE)

  • Lamb Weston Holdings Inc. ($LW)

  • McCormick & Co. Inc. ($MKC)

• Wednesday (10/2)

  • RPM International Inc. ($RPM)

  • Conagra Brands Inc. ($CAG)

• Thursday (10/3)

  • Constellation Brands Inc. Cl A ($STZ)

  • AngioDynamics Inc. ($ANGO)

• Friday (10/4)

  • Apogee Enterprises Inc. ($APOG)

Notable Ex-Dividend Dates:

• Monday (9/30)

  • Deere & Company ($DE) 1.55%*

  • Humana ($HUM) 0.99%

  • U.S. Bancorp ($USB) 4.47%*

  • Xerox ($XRX) 9.59%

• Tuesday (10/1)

  • Agilent Technologies ($A) 0.67%

  • CubeSmart ($CUBE) 4.33%

  • Raymond James ($RJF) 1.55%

• Wednesday (10/2)

  • Cisco Systems ($CSCO) 3.30%*

  • Comcast ($CMCSA) 3.22%

• Thursday (10/3)

  • Campbell Soup ($CPB) 2.91%*

  • Progressive ($PGR) 0.20%

• Friday (10/4)

  • American Express (AXP) 1.10%*

  • JPMorgan Chase & Co. (JPM) 2.20%

  • MORN

  • Morningstar (MORN) 0.50%

*Dividend Aristocrat