Trade Deal - Canada and America Agree
Trade Deal - U.S. Makes A Trade Deal With Canada Last Friday, it looked unlikely that America and Canada would reach the September 30th deadline to make a trade deal. But it happened on Sunday night. The action on Monday makes perfect sense as the Dow increased 0.73% and the Russell 2000 fell 1.39%. America…
Global Manufacturing Hits A 22 Month Low
Global Manufacturing - Markit PMI Matches Highest Estimate The Markit global manufacturing PMI beat estimates and increased from August. The ISM PMI did the reverse. Prior to this set of reports, the ISM reports have been wildly optimistic. But the Markit ones have shown weakness. Let’s review the Markit report first. The September flash Markit…
Healthcare Sector Increases 14.1% In Q3
Healthcare Sector - Without GE Dow Increases 9.3% Healthcare was the best sector in Q3 as it increased 14.1%. That was its best quarter since Q3 2013. The next two best sectors were the industrials and tech which were up 9.7% and 8.5%. While tech has changed its makeup, Apple remains in the sector. Apple…
Elon Musk Charged With Fraud By The SEC
Elon Musk Charged With Fraud The biggest news on Thursday was that Elon Musk is being charged with fraud by the SEC. This caused Tesla stock to fall 12.66% after hours. The image below explains the SEC’s case against Musk. It pertains to the August 7th tweet where he stated “Am considering taking Tesla private…
Jobless Claims Spike 12,000 Mostly Due To Hurricane Florence
Jobless Claims - Hurricane Florence Boosts Jobless Claims As I predicted, the jobless claims report was the first one to show weakness related to hurricane Florence. Jobless claims were 214,000 which was a 12,000 increase from the previous week. The 4 week moving average only increased 250 to 206,250. It was 1,000 higher than the…
Stocks Fall After Fed Hikes Rates
Stocks Fall - Bank Stocks Fall Along With Treasury Yields The action on Wednesday was interesting. Both the sectors that like rate hikes and the sectors that don’t like rate hikes did poorly. The financials like rate hikes. However, they fell 0.99%, possibly because the Fed removed the term ‘accommodative’ from the statement. This pushes…
Hawkish Hike for Fed
Hawkish Hike This was a hawkish hike as the Fed increased its economic projections. We no longer need to review the changes to the FOMC statement line by line, because it has shrunk since Powell has taken the helm as chair. There was one change, other than the month and policy change. This continued the…
Banks Underperform Despite Rising Rates
Banks Underperform The best two sectors were consumer discretionary and energy which increased 0.59% and 0.57%. The communication services index was up 9 basis points in its second day. Worst sectors were utilities and consumer staples which fell 1.22% and 0.73%. This action is related to heightened interest rates. It’s interesting to see that the…
Richmond Fed Index - Record High
Richmond Fed Index - New Record It appears manufacturing activity in September was strong based on the regional Fed indexes and the Markit flash reading. There could be weakness in the service sector as was shown in the flash Markit reading. As you can see from the chart below, the Richmond Fed manufacturing index hit…
Brent Oil Hits The Highest Level Since November 2014
Brent Oil Price Increase Drives Inflation Expectations The worst sectors were real estate and consumer staples as they fell 1.89% and 1.5%. The best ones were energy and tech which increased 1.47% and 0.31%. As you can tell, oil prices and interest rates affected stocks on Monday. Brent oil peaked at $81.39 which was its…
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