Weekly Market Recap:

This week, U.S. equities saw a strong rebound, with the Dow gaining +2.60%, the S&P 500 up +4.02%, the Nasdaq surging +5.95%, and the Russell 2000 climbing +4.36%. The rally was driven by big tech, especially AI-focused stocks, recovering from last week’s slump. Notable performers included NVIDIA (+15.8%), Amazon (+8.8%), and Microsoft (+7.2%), while Apple lagged with a modest +0.7%.

Semiconductors (+9.9%), IT services, and software led the week, with Oracle (+14.3%) as a standout. Meanwhile, sectors like energy and financials underperformed.

Treasury yields were firmer, while the dollar was steady. Gold hit a record high, gaining +3.4%, and crude oil rose +1.2%. The focus next week will shift to retail sales and the FOMC meeting.

Corporate Highlights:

• Oracle (+14.3%) impressed with strong earnings and a new MultiCloud agreement.

• Apple (+0.7%) announced its new iPhone, though faced setbacks with a $14B tax dispute.

• Tesla (+9.3%) posted its best month of sales in China.

Discount retailers such as Dollar Tree, Dollar General and Five Below have always been considered a leading indicator for recessions. When families and individuals become more price conscious, investors see upticks in the previously mentioned stocks. As inflation continues to affect citizens at the grocery stores and gas stations, the popular inflation barometer has not been cooperating with the historical narrative. This leads to a new question though. Has the traditional customer of discount retailers finally changed their behavior. No longer are the same deals available at the dollar-based branded stores as production costs increase making it more difficult for them to maintain their marketing mission statements. Instead, look for customers to continue their pivot to the superstores like Walmart and Target, as seen in the chart below. Better deals without the stigma.

Next Week:

Notable Earnings:

• Monday (9/16)

  • Vince Holding Corp. (VNCE$)

  • Coda Octopus Group Inc. (CODA$)

• Tuesday (9/17)

  • Ferguson Enterprises Inc. (FERG$)

  • WildBrain Ltd. (WLDBF$)

• Wednesday (9/18)

  • General Mills Inc. (GIS$)

  • Ermenegildo Zegna N.V. (ZGN$)

• Thursday (9/19)

  • FedEx Corp. (FDX$)

  • FactSet Research Systems Inc. (FDS$)

  • Cracker Barrel Old Country Store Inc. (CBRL$)

• Friday (9/20)

  • Tamboran Resources Corp. (TBN$)

Notable Ex-Dividend Dates:

• Monday (9/16)

  • Harley-Davidson (HOG%) 1.84%

  • Hess (HES$) 1.40%

  • Meta Platforms (META$) 1.39%

  • Paramount Global (PARA$) 1.82%

• Tuesday (9/17)

  • Invesco Bond Fund (VBF$) 5.30%

• Wednesday (9/18)

  • Salesforce (CRM) 0.70%

• Thursday (9/19)

  • Best Buy (BBY) 4.28%

  • DICK'S Sporting Goods (DKS$) 1.99%

• Friday (9/20)

  • Royal Caribbean Cruises (RCL$) 0.93%

*Dividend Aristocrat