Good morning,

Today we remember the cowardly attack on America by the Taliban and Bin Laden. Our thoughts and prayers go out to those who lost loved ones.

Let’s kick things off with Apple (AAPL), the tech giant that found itself in hot water this week. The company’s stock plummeted by a staggering 6% following news that Chinese officials are now barred from using Apple devices. It’s not just Apple feeling the heat; the ripple effect also hit semiconductor stocks, causing the PHLX Semiconductor Index to drop by 3.2%.

So, why should you care? Well, if China decides to play hardball with Apple, a company that has had a pretty cozy relationship with the country, it could spell trouble for other U.S. companies operating there. It’s like throwing a wrench in the works, and the market is understandably jittery about it.

Table of Contents

Black Gold’s Glitter and Gloom

Oil prices are another big headline-grabber. WTI crude oil futures soared by $1.92, or 2.2%, settling at $87.47 per barrel. This uptick came on the heels of an announcement that Saudi Arabia and Russia plan to extend their voluntary oil production cuts through the end of 2023. While this might be music to the ears of energy investors, it’s causing the rest of us to break out in a cold sweat over rising inflation and tighter consumer spending.

Yield to the Yield

Treasury yields also had their moment in the sun, and not in a good way. The 2-year note yield rose by nine basis points to 4.97%, while the 10-year note yield followed suit, also increasing by nine basis points to 4.26%. What’s driving this? A slew of economic data that’s making market participants antsy. The ISM Services PMI showed an acceleration in the services sector, but also an uptick in prices. It’s like a double-edged sword; good for business but potentially bad for your wallet.

Jobs, Jobs, Jobs!

On a brighter note, initial jobless claims for the week ending September 2 were just 216,000—the lowest since February. But don’t pop the champagne just yet. While this is great news for the economy, it also means the Federal Reserve might keep its foot on the brake, maintaining a restrictive monetary policy for a longer period.

Sectorial Splits

• Winners: Energy (+1.4%) and Utilities (+0.3%)
• Losers: Industrials (-2.9%), Information Technology (-2.3%), and Materials (-2.5%)

Takeaways

1. The Apple-China Conundrum: If China can make life difficult for Apple, what does this mean for other U.S. companies?
2. Oil’s Double-Edged Sword: How sustainable is the current oil price trend, and what impact will it have on consumer spending?
3. Yield Curve Questions: With Treasury yields on the rise, how will this affect the broader market and your investment strategy?

So there you have it, folks—a week that’s been as unpredictable as a cat on a hot tin roof. Buckle up; it looks like we’re in for a bumpy ride.

CALENDAR & MOVERS

• Wednesday, September 13:  CPI (MoM) (August)
• Thursday, September 14: Retail Sales (MoM) (August)
• China-Apple Economy
• Oil (Energy Sector)

Ah, the smell of fresh economic data in the morning! It’s like a cup of coffee for Wall Street, and let me tell you, this week is brewing up to be a double espresso. From the much-anticipated inflation report to corporate showdowns, we’re in for a rollercoaster of events that could make or break the financial landscape. So, buckle up, folks!

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Have a great week!

Irving Wilkinson
Editor
AlphaBetaStock.com