EWMC News and Press, Invesco S&P MidCap 400 Equal Weight From 10/22/22

Summary Europe’s energy security and decarbonization goals will spur R&D in cleantech, solar in particular. We expect further easing of monetary and fiscal policies to boost growth prospects and earnings expectations, and possibly trigger a rebound in Chinese equities. ...

Summary “Recession Fatigue” is setting in as consumers struggle under rising interest rates, high inflation, and a declining stock market. With unemployment rates at record lows, jobless claims at historically low levels, and consumer spending still above trend, an o...

Summary Wall Street will pay close attention to the first look at third-quarter GDP. This is the critical week for guidance from mega-cap tech that will either make or break risk appetite. A new week will bring a new Prime Minister in the UK, the third in two months, following...

Summary What the bottom of the market might look like? Why growth may have to flatten before a market bottom can be reached? Why core inflation is a newly challenged for central banks and what it means for markets? Equity markets have struggled this year amid...

Summary The distortion of inflation can lower the rate of real growth because inflation impacts behavior in nonproductive ways. The number of job openings exceeds the number of job seekers, and the result is a wage inflation pressure that is triggering the Federal Reserve’s...

Summary The tug-of-war between strong earnings reports and rising interest rates continues. Fair market value for the S&P 500 has arguably fallen to 3,200 with the rapid increase in interest rates. Bear markets take no prisoners, as stocks are sold indiscriminately as we a...

Summary It was a good week for jobless claims as the seasonally adjusted number fell 12K to 214K versus last week’s downward revision to 226K. On a non-seasonally adjusted basis, claims were also lower as might be expected for the current week of the year. As we highlig...

Summary Initial claims for regular state unemployment insurance fell by 12,000 for the week ending October 15th, coming in at 214,000. When measured as a percentage of nonfarm payrolls, claims came in at 0.136 percent for September, down from 0.160 in August but above the record l...

Summary A small equity market bounce over the last week didn’t cause any major changes in investor sentiment, at least based on the weekly AAII numbers released this morning. The latest data from AAII showed 22.6% of survey respondents reported as bullish versus 20.4% the w...

Summary The S&P 500 remains supported along its June lows, as buyers appeared to stanch further selling. However, the price action has not been resolved. We anticipate that the market has already priced in a mild-to-moderate recession. But, we explain why the Fed may not be fi...