A Storm might be brewing in US markets. Investors are not very confident about near future of the markets. The jittery mood was demonstrated by this week’s $45 billion in capital outflows from money market funds, the largest outflow of the year. During the last week the S&P 500 slipped 0.6%, the Nasdaq Composite closed down 0.5% and the Dow Jones average fell just 0.1%. The weekly drop in the Dow was the third in the row, which has not happened since September of 2020.Many on Wall Street are warning of a correction. They say it’s a matter of when, not if. 

Top Sectors last Week:

  • Energy Sector (ETF: XLE) up 3.2%
  • Consumer Discretionary Sector (ETF: XLY) up 0.66%
  • Financial Sector (ETF: XLF)  no change

Losers last week:

  • Materials Sector (ETF: XLB) down 3.19%
  • Utilities Sector (ETF: XLU) down 2.99%
  • Industrials Sector (ETF: XLI) down 1.6%


Interesting News:

  • Winter weather could send oil to $100 per barrel, Bank of America analysts say: The price of oil has enjoyed a mini run of late, but that is just a precursor to a potential 36% gain from here, according to Bank of America. The winter could bring a surge in demand, while supplies are limited. The rally in crude oil futures has stalled since June, but could resume again and even hit $100 depending how cold it gets. As natural gas and other energy prices rise, cold weather could prompt switching into oil, driving up crude. Separately, commodity strategists at Goldman Sachs say oil could “rally significantly,” particularly if a deal on nuclear capability with Iran falls apart.
  • New Era of Space Flight: The first all-civilian mission to orbit Earth blasted off on Wednesday night at 8:02 p.m. ET. SpaceX powered the expedition, known as Inspiration4, using one of its Dragon capsules atop a reusable Falcon 9 rocket. While the civilian mission is part of a charity initiative to raise money for St. Jude Children’s Research Hospital, it’s being sized up as a coming-of-age moment for an commercial spaceflight market which hopes to send many more people to space and even deeper into the solar system. The latest endeavor supported by SpaceX will go well beyond the International Space Station at a height of 360 miles above Earth. That compares to the recent flights of Virgin Galactic’s (SPCE) Richard Branson (50 miles up) and Blue Origin’s Jeff Bezos (65 miles up). These latest events might potentially be giving a push to Space industry and stocks. For investors interested in this industry one potential play can be ARK Space Exploration & Innovation ETF (ARKX).
  •  Bank of America predicts 50% gain in Lucid:  Lucid Group appears to be on firm footing to become one of the new electric vehicle start-ups that could turn into a real player in the auto market, according to Bank of America. shares rose on Wednesday after Bank of America initiated coverage of the luxury electric vehicle maker with a buy rating and $30 price target. Electric vehicles market is growing rapidly: As of 2020, nearly 1.8 million EVs were registered in the U.S., more than three times as many as in 2016, according to the International Energy Agency (IEA). The fastest growth in EV sales has been in Europe: a compound annual growth rate of 60% from 2016 to 2020.  EV market can be quite lucrative for investors who will be able to find right investment opportunities early on. Investors can find interesting the following article by the Motley fool: 3 Top Electric Vehicle Stocks, which includes Lucid Group, Ford Motors and ChargePoint


The Calendar

The Federal Reserve meeting is the big marquee event in the week ahead. The sharpest focus will be on the language from the policy-making committee on when it sees it as an appropriate time to start reducing the pace of asset purchases. A majority of economists expect the first change in bond purchases to take place in December.

Anticipated Earnings This week: 

Monday, September 20th: Lennar (LEN).
Tuesday, September 21st: AutoZone (AZO), Cracker Barrel (CBRL), Aurora Cannabis (ACB), FedEx (FDX), Adobe (ADBE) and Stitch Fix (SFIX).
Wednesday, September 22nd: General Mills (GIS), Blackberry (BB) and KB Home (KBH).
Thursday, September 23rd: Carnival (CCL), Darden Restaurants (DRI), Rite Aid (RAD), Costco (COST) and Nike (NKE).


IPO’s This week:

There will be another busy week in the IPO market. IPOs expected to start trading during this week include: a.k.a. Brands Holdings (AKA), Freshworks (FRSH), VersaBank (VRRKF) and Toast (TOST), Argo Blockchain (ARBK), Brilliant Earth Group (BRLT), Knowlton Development (KDC), Remitly (RELY), Sovos Brands (SOVO) and Steling Check Corp. (STER).