Bull Market - Weeks Away From Longest Since WWII
Bull Market - Longest Wave Since WWII Bull market investors are riding the wave of great earnings reports and improving estimates which aren’t being hampered by fears of a trade war or fears of an economic slowdown. Weakening ISM and Markit services reports aren’t enough to worry investors. It’s easy to ignore them when forward…
Business Optimism At A 6 Month Low?
Business Optimism and the Weakening PMI Services Index Business optimism - After reviewing the non-manufacturing ISM report, you must be wondering about the stability of this recovery. Is it possible that the services index is signaling a slowdown in the 2nd half of the year? Reviewing the July Markit services report will help us find…
Tariffs To Add $1,800 To The Sticker Price Of Toyota Camry
Tariffs Are Affecting Business Tariffs and their effects - A wood products firm made the following point: “The so-called trade war is now taking its toll on business activity, resulting in substantial reductions to new export orders. China has all but stopped taking orders, causing inventories to build up in the U.S. Domestic business is…
Stocks Soar While Services PMI Weakens
Stocks Soar - Big Caps Rally, While Small Caps Sell Off Stocks soar - The past few weeks in the stock market have been much like 2017 as there hasn’t been much volatility. The VIX is now down to 11.64 and the S&P 500 is closing in on its January record. The S&P 500 was…
Apple Hits $1 Trillion; Tesla Stock Rallies 16.2%
Apple Hits $1 Trillion Apple hitting a $1 trillion market cap could boost consumer sentiment on the stock market. AAPL is larger than 3 entire sectors. The utilities have a market cap of $700 billion. The materials and telecom sectors have market caps of $653 billion and $492 billion respectively. The chart below shows the…
Fed Maintains Rates, Says The Economy Is Strong
Fed Decides To Maintain Rates Fed - In a widely expected move, the Fed decided to keep rates steady. They are currently in the range between 1.75% and 2%. The statement was short again as Powell wants to use press conferences to explain policy instead of explaining every detail in the FOMC statement. Since it…
Union & Private Sector Workers See Accelerated Compensation Growth
Union & Private Sector Workers - Income & Spending Growth Union & Private Sector Workers - Income and spending growth is also included in the PCE report. It implies continued steady economic growth as the personal income growth was 0.4% month over month. This met estimates and was the same as last month. Real personal…
Apple Grows EPS By 40%
Apple Grows EPS - Stocks Were Up, Ending Their Best Month Since January Apple Grows EPS - The end of the month can be a curious time because there is occasional window dressing where fund managers try to make their portfolio look good for their investors. The action on Tuesday was fairly normal. July ended up being…
Inflation Misses Estimates
Inflation Misses Estimates - Core PCE Below 2% Target Inflation Misses Estimates - The all important June PCE report, which is chock full of useful economic data, was released Tuesday. In this article, I will look at the inflation section of the report. It is the most important part since the Fed is deciding whether…
Tech Stocks Swoon, Led By FANG
Tech Stocks Swoon - Tech Leads Market Lower Tech Stocks Swoon - The stock market sold off on Monday like I expected because it reached overbought territory on Thursday. The S&P 500 was down 0.58%. The part of the selloff I was surprised by the was the big decline in the tech stocks as the Nasdaq…
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