Morning Report: Welcome to Q4

Vital Statistics: Stocks are lower this morning as rates continue to rise. Bonds and MBS are down. I think most investors are happy to see September (and Q3 in general) in the rear view mirror. Most asset classes lost money in September, with stocks posting their worst month this year. Bond yields spiked and about the only sector that worked was energy. The government came up with a deal to prevent a shutdown. The deal funds the government through early November. The deal did not include any spending cuts however it didn’t include any further aid for Ukraine either. Judging by the yield on the 10 year, it wasn’t shutdown fears that were pushing rates higher. The upcoming week will be dominated by employment data, culminating with the jobs report on Friday. The consensus is that the economy added 160,000 jobs in September, and the unemployment rate ticked down to 3.7%. Average hourly earnings are expected to have risen 4.3% on a year-over-year basis. We also get the ISM reports. Rithm Capital (parent of NewRez and Caliber) announced the purchase of Specialized Loan Servicing and other assets from Computershare for $720 million. The deal includes about $136 billion in MSRs. “The addition of SLS continues to grow our best-in-class special servicing business and adds more clients and homeowners to the Newrez platform,” said Baron Silverstein, President of Newrez. “It further strengthens our origination and servicing channels, both of which are designed to deliver a customer experience that prioritizes a successful homeownership journey.” Manufacturing activity contracted in September for the 8th consecutive month, according to the ISM Survey. “The U.S. manufacturing sector continued its contraction trend but at a slower rate, recording its best performance since November 2022, when the PMI® also registered 49 percent. Companies are still managing outputs appropriately as order softness continues, but the month-over-month PMI® improvement in September is a clear positive. Demand eased marginally, with the (1) New Orders Index contracting, though at a slower rate, (2) New Export Orders Index continuing in contraction territory but with a marginal increase, and (3) Backlog of Orders Index declining. The Customers’ Inventories Index reading indicated improved supply chain efficiency, as output improved and customers’ inventories continued to decline. Output and Consumption (measured by the Production and Employment indexes) was positive, with a combined 5.2-percentage point upward impact on the Manufacturing PMI® calculation. Panelists’ companies improved production compared to August and continued to manage head counts, primarily through attrition and hiring freezes. Inputs — defined as supplier deliveries, inventories, prices and imports — continued to accommodate future demand growth. The Supplier Deliveries Index indicated faster deliveries for the 12th straight month, at a faster rate compared to August, and the Inventories Index remained in contraction territory, but improved month over month. The Prices Index remained in ‘decreasing’ territory, 4.6 percentage points lower than the August reading, signifying a return to price reductions, but energy costs in August and September could possibly affect future material costs. Manufacturing supplier lead times continue to decrease, but at a slow pace. [Image] Here are Some More Investing Tips and Resources. Enjoy! Sponsored [This Could Become Your Favorite Stock In A Recession]( Financial experts are split on the recession. Some deny, some say it’s already started, and some are giving new silly names like a “rolling recession” to try to make sense of it. The fact is much of the market believes a big recession is still coming... [Get the FULL Report Here]( By clicking link you are subscribing to The Investor Newsletter Daily Newsletter and may receive up to 2 additional free bonus subscriptions. Unsubscribing is easy. [Privacy Policy/Disclosures]( [Morning Report: Welcome to Q4]( Vital Statistics: Stocks are lower this morning as rates continue to rise. Bonds and MBS are down. I think most investors are happy to see September (and Q3 in general) in the rear view mirror. Most asset classes lost money in September, with stocks posting their worst month this year. Bond yields spiked and about the only sector that worked was energy. The government came up with a deal to prevent a shutdown. The deal funds the government through early November. The deal did not include any spending cuts however it didn’t include any further aid for Ukraine either. Judging by the yield on the 10 year, it wasn’t shutdown fears that were pushing rates higher. The upcoming week will be dominated by employment data, culminating with the jobs report on Friday. The consensus is that the economy added 160,000 jobs in September, and the unemployment rate ticked down to 3.7%. Average hourly earnings are expected to have risen 4.3% on a year-over-year basis. We also get the ISM reports. Rithm Capital (parent of NewRez and Caliber) announced the purchase of Specialized Loan Servicing and other assets from Computershare for $720 million. The deal includes about $136 billion in MSRs. “The addition of SLS continues to grow our best-in-class special servicing business and adds more clients and homeowners to the Newrez platform,” said Baron Silverstein, President of Newrez. “It further strengthens our origination and servicing channels, both of which are designed to deliver a customer experience that prioritizes a successful homeownership journey.” Manufacturing activity contracted in September for the 8th consecutive month, according to the ISM Survey. “The U.S. manufacturing sector continued its contraction trend but at a slower rate, recording its best performance since November 2022, when the PMI® also registered 49 percent. Companies are still managing outputs appropriately as order softness continues, but the month-over-month PMI® improvement in September is a clear positive. Demand eased marginally, with the (1) New Orders Index contracting, though at a slower rate, (2) New Export Orders Index continuing in contraction territory but with a marginal increase, and (3) Backlog of Orders Index declining. The Customers’ Inventories Index reading indicated improved supply chain efficiency, as output improved and customers’ inventories continued to decline. Output and Consumption (measured by the Production and Employment indexes) was positive, with a combined 5.2-percentage point upward impact on the Manufacturing PMI® calculation. Panelists’ companies improved production compared to August and continued to manage head counts, primarily through attrition and hiring freezes. Inputs — defined as supplier deliveries, inventories, prices and imports — continued to accommodate future demand growth. The Supplier Deliveries Index indicated faster deliveries for the 12th straight month, at a faster rate compared to August, and the Inventories Index remained in contraction territory, but improved month over month. The Prices Index remained in ‘decreasing’ territory, 4.6 percentage points lower than the August reading, signifying a return to price reductions, but energy costs in August and September could possibly affect future material costs. Manufacturing supplier lead times continue to decrease, but at a slow pace. [Continue Reading...]( [Morning Report: Welcome to Q4]( And, in case you missed it: - [Invitation Homes (NYSE:INVH) Stock Rating Upgraded by Evercore ISI]( - [Xylem (NYSE:XYL) Stock Rating Upgraded by Melius]( - [Sun Communities (NYSE:SUI) Cut to "Neutral" at Bank of America]( - [The GEO Group (NYSE:GEO) Coverage Initiated at Northland Securities]( - [River Road Asset Management LLC Sells 4,298 Shares of Amgen Inc. (NASDAQ:AMGN)]( - FREE OR LOW COST INVESTING RESOURCES - [i]( [i]( [i]( [i]( Sponsored [How He Bagged One Of The Top Trading Records…]( A reclusive millionaire has been quietly racking up winning trade after winning trade. Despite avoiding most headlines, he’s become one of the most successful traders around - over the last 8 years, he’s banked a 97% win rate. How does he do it? He sat down for a rare interview where he revealed it all. [Click HERE to see how he’s done it…]( [Privacy Policy/Disclosures]( - CLICK THE IMAGE BELOW FOR MORE INFORMATION - [i]( Good Investing! T. D. Thompson Founder & CEO [ProfitableInvestingTips.com]() ProfitableInvestingTips.com is an informational website for men and women who want to discover investing and trading products and strategies to educate themselves about the risks and benefits of investing and investing-related products. DISCLAIMER: Use of this Publisher's email, website and content, is subject to the Privacy Policy and Terms of Use published on Publisher's Website. Content marked as "sponsored" may be third party advertisements and are not endorsed or warranted by our staff or company. The content in our emails is for informational or entertainment use, and is not a substitute for professional advice. Always check with a qualified professional regarding investing and trading guidance. Be sure to do your own careful research before taking action based on anything you find in this content. If you no longer wish to receive our emails, click the link below: [Unsubscribe]( Net Wealth Consultants 6614 La Mora Drive Houston, Texas 77083 United States (888) 983-9123