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Stock Market Outlook for September 26, 2018

Home prices in some of the most expensive cities in the US flat-lining, suggestive of a peak.

 

Real Time Economic Calendar provided by Investing.com.

 

*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.   As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.

Stocks Entering Period of Seasonal Strength Today:

XPO Logistics, Inc. (NYSE:XPO) Seasonal Chart

XPO Logistics, Inc. (NYSE:XPO) Seasonal Chart

Hubbell, Inc. (NYSE:HUBB) Seasonal Chart

Hubbell, Inc. (NYSE:HUBB) Seasonal Chart

Hon Industries, Inc. (NYSE:HNI) Seasonal Chart

Hon Industries, Inc. (NYSE:HNI) Seasonal Chart

BlackBerry  (TSE:BB) Seasonal Chart

BlackBerry (TSE:BB) Seasonal Chart

Archer Daniels Midland Company  (NYSE:ADM) Seasonal Chart

Archer Daniels Midland Company (NYSE:ADM) Seasonal Chart

Autoliv, Inc. (NYSE:ALV) Seasonal Chart

Autoliv, Inc. (NYSE:ALV) Seasonal Chart

Danaher Corporation  (NYSE:DHR) Seasonal Chart

Danaher Corporation (NYSE:DHR) Seasonal Chart

Lamar Advertising Company  (NASDAQ:LAMR) Seasonal Chart

Lamar Advertising Company (NASDAQ:LAMR) Seasonal Chart

 

 

The Markets

Stocks closed mixed on Tuesday as investment managers continued to reallocate portfolios ahead of the end of the quarter.  The S&P 500 Index closed down by just over a tenth of a percent, pressured lower by weakness in Utilities and Consumer Staples.  The defensive bets have been rolling over in recent days as investors seek to limit their exposure to rising interest rates.  The FOMC will deliver its monetary policy announcement on Wednesday, providing clues as to how aggressive the Fed will be in normalizing policy through the end of the year and into next.

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On the economic front, a report on home prices was released before the opening bell.  The headline print indicated that home prices in the 20-largest cities in the US increased by 0.1% in July, inline with the consensus analyst estimate.  Stripping out the seasonal adjustments, home prices were actually higher by 0.3%, which was short of the 0.5% increase forecasted by analysts.  The average change in this summer month is +0.8%.  The year to-date change of 4.6% is off the pace set last year when prices were higher by 4.9% through the summer month.  The impact of rising housing inventory is suggested to be weighing, which is causing price gains to converge with the seasonal average trend.  Prices in some of the most expensive cities are already showing signs of flat-lining, including New York, Washington, Los Angeles, and San Diego, each of which have fallen below the seasonal average trend.  Prices in the housing market are increasingly vulnerable as the forces of supply and demand seek a new equilibrium.  Seasonally, home prices tend to peak in September, then decline through the fourth quarter as the demand to move during this period is typically less.  To see the price trends of some of the cities in the report, the charts are available in the database at https://charts.equityclock.com/sp-corelogic-case-shiller-home-price-index-city-breakdown.

 S&P/Case-Shiller 20-City Composite Home Price Index Seasonal Chart

Monthly  S&P/Case-Shiller 20-City Composite Home Price Index Data

Sentiment on Tuesday, as gauged by the put-call ratio, ended bullish at 0.88.

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Sectors and Industries entering their period of seasonal strength:

S&P/TSX Capped Information Tech Seasonal Chart

$SPTTK Relative to the S&P 500
$SPTTK Relative to the S&P 500

$SPTTK Monthly Averages

 

 

Seasonal charts of companies reporting earnings today:

Actuant Corporation (ATU) Seasonal Chart Bed Bath & Beyond Inc. (BBBY) Seasonal Chart CarMax Inc (KMX) Seasonal Chart Comtech Telecommunications Corp. (CMTL) Seasonal Chart H. B. Fuller Company (FUL) Seasonal Chart OMNOVA Solutions Inc. (OMN) Seasonal Chart Worthington Industries, Inc. (WOR) Seasonal Chart

 

 

S&P 500 Index

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TSE Composite

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