DC Lite #207

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1. Jobless claims. Initial jobless claims dropped by the most in a month to the lowest level since May. Continuing claims similarly fell by more than expected to the lowest since June.

2. Fed vs. financial conditions. "The last time the Fed cut this much when financial conditions were set this fair was way back in 1992."

3. MMFs (I). "It’s unlikely ... that Fed cuts will spur large outflows ... rates typically need to fall <2% for MMF outflows."

4. Net capital flows (I). "Institutions bought a net $6.82 billion in stocks through August ... the first month that institutional investors were net buyers in equities since December 2023."

5. R2K streak. The Russell 2000 has now risen for 7 days in a row, a feat accomplished only 27 other times while also trading above the 200SMA. Forward returns have been mixed.