Stock Market Outlook for September 4, 2025
Google’s ruling shines an ever-glowing light on Communications Services sector exposure in portfolios.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities. As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.
Stocks Entering Period of Seasonal Strength Today:
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Amphenol Corp. (NYSE:APH) Seasonal Chart
Daily Journal Corp. (S.C.) (NASD:DJCO) Seasonal Chart
National HealthCare Corp. (AMEX:NHC) Seasonal Chart
Extreme Networks, Inc. (NASD:EXTR) Seasonal Chart
Daktronics, Inc. (NASD:DAKT) Seasonal Chart
Woodward Governor Co. (NASD:WWD) Seasonal Chart
Nike Inc. (NYSE:NKE) Seasonal Chart
The Markets
Stocks closed fairly mixed on Wednesday as an uptick in growth names offset weakness in most of the other areas of the market amidst a concerning set of economic data points. The S&P 500 Index ended up by just over half of one percent, attempting to keep the level of short-term support from the April low intact around the 20-day moving average (6429). Momentum indicators are still showing negative divergences versus price where lower-highs below July’s overbought extremes have been charted for RSI and MACD. The result gives strong evidence of buying exhaustion, once again lending itself to the onset of a digestion of prices aligning with the period of volatility for the equity market. As has been emphasized, this is the time to be on your toes given the well known volatile period that this time of year is notorious for. As equity markets destabilize from their summer strength, looking for opportunities to peel back risk in portfolios has become appropriate in order to mitigate the erratic moves that impacts stocks in the final months of the third quarter (August/September). The strategy remains to avoid being aggressive in risk (stocks) in the near-term, but take advantage of any volatility shocks (should they materialize) to increase the risk profile of portfolios ahead of the best six months of the year for stocks that gets underway in October. Our list of candidates in the market that are worthy to Accumulate or Avoid continues to be dialed in appropriately, keeping investors tuned into those segments of the market that are working according to our three-pronged approach incorporating seasonal, technical, and fundamental analysis.
Today, in our Market Outlook to subscribers, we discuss the following:
- Communications Services sector
- Job Openings and Labor Turnover Survey (JOLTS)
- Signs of degradation in the labor market bodes well for fixed income exposure
- Precious Metals/Palladium
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Sentiment on Wednesday, as gauged by the put-call ratio, ended bullish at 0.86.
Seasonal charts of companies reporting earnings today:
S&P 500 Index
TSE Composite
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