CHRIS VERSACE: Good morning, Action Alerts Plus subscribers. As we get back to business after the long weekend, we will soon be facing a rush of PMI data for the services sector, and it will be important for a few reasons. First, recent PMI data showed the manufacturing economy continued to contract in August. And we will want to see that the services part of the economy continues to keep the overall economy on a growth vector.

Second, the services economy and its inflation has been a hot button for the Fed. Comments inside the August services PMI reports will tell us to what extent we've seen inflation cool further during the month. That could be a potentially nice setup for the August inflation data coming next week. Third, there is a tight correlation between this data and S&P 500 revenue expectations.

With a big week for investor conferences, the PMI data could frame what management teams will be telling us in the coming days about the tone of not only the current quarter but prospects for the final one of the year. And let's remember, members, just like the August manufacturing PMI data, we will have two reports on the services sector out tomorrow-- one from S&P Global and the other from ISM.

We will want to compare the findings of both reports because it will give us a clearer picture of all that I've just touched on. You can expect detailed comments once both of those reports are published tomorrow. And as we get ready for all of that, as you know, we've entered a new month, September, one that has a reputation for being a little difficult for the market.

In recent weeks, we've been pretty clear that the market could have been volatile, as more data is published ahead of the Fed's policy meeting later this month. Now, we continue to think that; and, yes, recent data has dialed back expectations for Fed policy later this year. But let's remember, we still have some key data points ahead of us, including the August CPI and PPI reports that are out next week.

And with the June quarter earnings season over, finally, we have a few weeks of investor conferences as well. Now, our thinking is, the market will continue to trade data point to data point based on what it learns last. Now, while this could mean the market will remain somewhat volatile, it could give us opportunities to utilize our shopping list. In last Friday's roundup, we shared that list.

But if you missed it, some of the stocks in the portfolio that are top of mind include Bank of America, McDonald's, and Trinity Capital. We also continue to watch shares of Morgan Stanley in the bullpen as well as a few others. Now, on that shopping list as well are the shares of Qualcomm, a position we added to last week after Broadcom brought the latest confirmation point for the expected seasonal ramp in smartphones.

That business-- and I mean smartphones-- remains Qualcomm's major end market as of today. Now, the company does continue to target other end markets for its chips, including the automotive market. Today, at the Munich Auto Show, CEO Cristiano Amon shared that Qualcomm expects to have $4 billion in revenue from the automotive sector by 2026, rising to $9 billion by the end of the decade.

Those are some big numbers, no question, but those are also more than a few quarters out. Now, the company also talked about some program wins with Mercedes and BMW, all of which is a promising start. But again, near-term, the smartphone market will be the primary driver of Qualcomm's revenue, earnings, and, of course, the shares.

With that in mind, the next catalyst will be the August revenue data from Taiwan Semiconductor, which should be out later this week. In addition to Qualcomm, we'll also be eyeing that August revenue data for our shares of Marvell, Apple, and Universal Display. Finally, let's end today's rundown with a programming note.

You can catch tomorrow's September AAP members-only call live on the AAP homepage. We'll be kicking it off at 12:00 noon, Eastern Standard Time. And no worries if you miss it; we will have a full replay soon after the live broadcast is over. Whether you catch it live or watch the replay, you're not going to want to miss what Helene, Sarah, and I have planned for you. Until then, have a great trading day.