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)

Apple manufactures smartphones, tablets, PCs, software, and peripherals for a worldwide customer base. Its products include Mac desktop and mobile PCs, iPhone, iPad, Apple Watch, and various consumer products, including AirPods, Beats headphones, and Apple TV. Apple services include App Store, iTunes, iCloud, Apple TV+, Apple Arcade, Apple Music, Apple Pay, and more.

The major indices are flat and trying to find the positive after taking in more inflation and employment data. Inflation, this time on the wholesale side, came in mostly as expected. Weekly jobless claims edged up just a hair.

Apple is among the largest companies in the world, with a broad portfolio of hardware and software products targeted at consumers and businesses. Apple’s iPhone makes up a majority of the firm sales, and Apple’s other products like Mac, iPad, and Watch are designed around the iPhone as the focal point of an expansive software ecosystem. Apple has progressively worked to add new applications, like streaming video, subscription bundles, and augmented reality. The firm designs its own software and semiconductors while working with subcontractors like Foxconn and TSMC to build its products and chips. Slightly less than half of Apple’s sales come directly through its flagship stores, with a majority of sales coming indirectly through partnerships and distribution.