Quanta Services provides infrastructure solutions for the utility, renewable energy, communications, pipeline and energy industries. It operates through the following segments: Electric Power Infrastructure Solutions, Underground Utility and Infrastructure Solutions, and Renewable Energy Infrastructure Solutions. The Electric Power segment provides network solutions for customers in the electric power industry. The Underground Utility segment provides infrastructure solutions for the development, transportation, distribution, storage, and processing of natural gas, oil, and other products. The Renewable Energy segment helps to build and maintain wind, solar, and hydropower generation facilities as well as battery storage facilities. PWR has a market cap of $35.5 billion.

The economic calendar is full this week, with inflation and GDP data due and a lot of Fedspeak, including from Chairman Jerome Powell. Wall Street will continue to absorb the supersized interest-rate cut last week and the debate over the next cut likely will heat up. The Dow Jones Industrial Average ended last week higher by 1.6%, the S&P 500 gained 1.4%, and the Nasdaq was up 1.5%. For the year, the DJIA is higher by 12%, while the S&P 500 and the Nasdaq have both popped by 20%. On the economic calendar, inflation data is due out on Friday. For July, PCE printed at 2.5%. Forecasts call for the pace to slow to 2.2% in August. Core PCE was 2.6% in July. Economists expect a tick higher to 2.7% for August. Meanwhile, Tuesday brings news on Consumer Confidence; Wednesday features New Home Sales; and GDP and Durable Goods Orders hit the tape on Thursday. In addition to PCE, Friday offers updates on Personal Income and Personal Spending. Finally, about 10 Fed officials speak publicly this week, including Chairman Powell, with pre-recorded remarks at a U.S. Treasury conference. On the earnings calendar, Tuesday brings reports from AutoZone and KB Home. On Wednesday, Micron Technology. And on Thursday, Costco, Accenture, and Jabil. Earnings last quarter were 13% higher than in the same quarter last year, which was better than expected. The next reporting season kicks off in mid-October, when the big banks announce results. Last week, mortgage rates dropped again, hitting 6.09% for the average 30-year fixed-rate mortgage. Gas prices fell six cents to $3.18 per gallon for the average price of regular gas. The Atlanta Fed GDPNow indicator is forecasting for 3Q and calls for expansion of 2.9%. The Cleveland Fed CPINow indicator for September is at 2.3%, down from last month's actual print. Looking ahead, the next Fed rate decisions are on November 7 and then on December 18. For November, odds are 100% for another rate cut and 50%-50% between a 25-basis-point or 50-basis-point cut, according to the CME FedWatch tool. Argus now forecasts two more rate cuts by the end of 2024 and three more in 2025 -- all by 25 basis points.

Quanta Services is a leading provider of specialty contracting services, delivering comprehensive infrastructure solutions for the electric and gas utility, communications, pipeline, and energy industries in the United States, Canada, and Australia. Quanta reports its results under three reportable segments: electric power, renewables infrastructure, and underground utility and infrastructure.

The Federal Reserve cut the fed funds rate by 50 basis points (bps), energizing buyers for about 45 minutes yesterday. Then, as often happens, investors faded the first move, stocks were lower into the close, and currently the futures market is through the roof. End of day, the Fed's target is now 4.75%-5.25%. By the last 2024 meeting on December 18, there is a 50% probability that the funds range will be 4.00%-4.25% and a 32% chance the target will be 4.25%-4.50%. Treasury yields across the curve ticked higher, mostly in the five- and 10-year yields, which rose 30 to 40 bps. Market yields have been falling since April in anticipation of a slowing economy and the rate. We are now in the last half of September, and the next two weeks historically are the worst of the year for stocks. Did we front-load those losses during the first four trading days of the month or does the market have pain ahead? Short term, it's hard to get a good feel for what will play out. But we feel confident that the fourth quarter will be kind to investors. The last quarter of the year, especially the months of November and December, are typically two of the strongest months of the year. The other nagging question (and keeping in mind that there are multiple economic reports ahead, 3Q EPS reports in October, and a presidential election in November) is the following. What will lead the market into the end of the year? Over the past three months, leadership has come from Real Estate, Utilities, Financial, Consumer Staples, Industrials, Healthcare, and Consumer Discretionary. That is a broad group. Information Technology is the only sector that has been down over the past three months. (Mark Arbeter, CMT)