The breadth in the stock market was impressive through the first three quarters of 2024, and we are not seeing signs of any narrowing in the advance in the fourth quarter. As of 9/30/24, the S&P 500 was up 20.8% on a capital-appreciation basis and 22.1% on a total-return basis (assuming reinvestment of dividends). At the nine-month mark, all but two sectors were up in double-digit percentages; the single-digit sectors, Energy and Materials, have been impacted by China (which as we noted is now awakening thanks to government stimulus). Since 1980, capital appreciation on the S&P 500 has been about 10% annually. A key takeaway is that as of 9/30/24, the ninth-best sector in the S&P 500, Real Estate, had already outperformed the full-year average gain for the S&P 500. October has been rocky, including the first losing week in over a month. One thing that has not changed, however, is the diversity of advancing stocks and sectors. As of 10/25/24, the S&P 500 was up a bit more than 1% for the month and for the quarter. The leading sector in 4Q24 has been Financial, rising about 5%. Financial companies, including the big banks, historically lead off the earnings season, and bank results this time were stellar. Next are Energy and Information Technology, both up in the 1%-2% range. Utilities are also rising by about one percentage point in October to date, extending their top-tier performance for 2024. But the other income sector that rallied in 3Q24, Real Estate, is down slightly. Also down for the quarter to date are Healthcare, Consumer Staples, and Materials; Consumer Discretionary is little changed. As at the end of 3Q24, all but two sectors are strongly ahead for the year to date.

Cintas Corp. provides products and services that help customers to keep their workplaces clean and safe. These include leasing, selling, and servicing corporate uniforms and other garments; fire protection products and services; restroom cleaning services and supplies; first aid and safety services; carpet and tile cleaning services; and safety and compliance training. Based in Cincinnati, Cintas is a Fortune 500 company with approximately 46,500 employees. The shares are a component of the S&P 500.

Monday Tee Up: Back to Labor This week, the focus on Wall Street swings back to the labor market. The September jobs report is due, as are other important labor indicators, and there's more Fedspeak, including from Chairman Jerome Powell. The Dow Jones Industrial Average and the S&P 500 both ended last week higher by 0.6%, while the Nasdaq was up 1.5%. For the year, the DJIA is higher by 12%, while the S&P 500 and the Nasdaq have both popped by 20%. On the economic calendar, key jobs data is due on Friday by way of the Nonfarm Payrolls report. In August, 142,000 new jobs were created and the Unemployment Rate came in at 4.2%. We forecast 135,000 new jobs for September and expect the Unemployment Rate to be unchanged. In other economic news, Job Openings, ISM Manufacturing, and Construction Spending come out on Tuesday. On Wednesday, the ADP private payrolls report hits the tape. And on Thursday, new data on Factory Orders will be released. As well, 10 Fed officials speak publicly this week -- including Chairman Powell, who speaks on Monday at the annual meeting of the National Association for Business Economics. On the earnings calendar, Carnival reports on Monday; Nike, McCormick, and Paychex on Tuesday; Levi Strauss and Conagra Brands on Wednesday; and Constellation Brands on Thursday. The next reporting season kicks off in mid-October with the big banks. Last week, there was mixed news on inflation. The Personal Consumption Expenditures (PCE) index showed that inflation slowed to 2.2% for August, compared to 2.5% in July. Core PCE, taking out volatile food and energy prices, ticked up to 2.7% in August from 2.6% in July. Mortgage rates dropped slightly to 6.08% for the average 30-year fixed-rate mortgage. Gas prices went up a penny to $3.19 per gallon for the average price of regular gas. The Atlanta Fed GDPNow indicator is forecasting for 3Q and calls for expansion of 3.1%. The Cleveland Fed CPINow indicator for September is at 2.3%. Looking ahead, the next Fed rate decisions are on November 7 and December 18. For November, odds are at 100% for another rate cut, with 47% expecting a 25-basis-point cut and 53% a 50-basis-point cut, this according to the CME FedWatch tool. We forecasts two more rate cuts by the end of 2024 and three more in 2025, with all being 25 basis points.

Cintas is positioned as a one-stop shop that rents/sells uniforms and ancillary products and services, such as mops, first aid kits, and fire inspections. In its core uniform and facility services unit (a majority of sales), Cintas provides uniform rental programs for items including office attire, custom-tailored apparel, flame-resistant clothing, lab coats, and other profession-specific clothing. Facilities products include the rental and sale of entrance mats, mops, shop towels, hand sanitizers, and restroom supplies. Cintas' remaining businesses include first aid and safety services, fire protection services, and uniform direct sales.