German Markit PMI Hits A 5 Month High
Final July Regional Fed Manufacturing Report The Dallas Fed manufacturing report is the last of the regional Fed readings for July. This means we can make educated guesses on how the ISM manufacturing PMI will turn out. I expect it to be weaker than June, but still show strong growth. The Dallas general activity index…
Stocks Correct Despite Strong Earnings
Stocks Fall After Getting Overbought The stock market fell on Friday as the S&P 500 was down 0.66%, the Russell 2000 was down 1.89%, and the Nasdaq was down 1.46%. Twitter and Intel were down 20.5% and 8.6% respectively which hurt the Nasdaq. The tech sector was the worst performer as it was down 1.99%;…
S&P 500 Survives Facebook Crash Almost Unscathed
Facebook Craters In my article on Facebook’s earnings report, I said Facebook’s market cap loss was going to be historic if it didn’t rally sharply during Thursday’s trading session. It closed down 18.96% which means it lost about $114.5 billion in market cap in one day which is the largest loss in history. It’s remarkable…
July Looks like Another Strong Month: Q3 GDP Growth Could Be 3%
Slight Weakness In Flash PMI Tuesday’s reading of the flash PMI for July was encouraging for manufacturing, but the composite headline number missed estimates because of services. The composite reading was 55.9 which missed estimates for 56.3 and was below last month’s report of 56. The manufacturing PMI was 55.5 which beat estimates for 54.9…
Facebook Crashes After Hours
Facebook Falls 20.23% After Hours Facebook stock had a massive crash after hours after it reported weak guidance and had a bad conference call. Facebook had rallied to new highs despite the Cambridge Analytica scandal. That was given back in a matter of minutes as the stock fell 20.23% to $173.5 from $217.5. The size…
Strong Philly Fed & Leading Indicators
Solid Philly Fed Report But Weakening Outlook I will continue discussing the economic reports from last week to catch up as earnings season has caused a bit of a delay in my economic analysis. The July Philly Fed manufacturing headline reading was strong as it came in at 25.7 which beat the consensus estimate for…
86% of S&P 500 Firms Have Beaten EPS Estimates
S&P 500 Gets Within Striking Distance Of Its Record I was wrong to say the Nasdaq would have a good day because of Alphabet’s great earnings report as the index fell one basis point on Tuesday. The Russell 2000 was down 1.07% while the Dow was up 0.79% as it was driven by the 3.8%…
Alphabet Reports Great Earnings
$1 Trillion Doesn’t Matter Alphabet reported great earnings on Monday afternoon as the stock increased 3.53% on Tuesday. Heading into the earnings report, the stock was up 13.19% year to date. The S&P 500 technology sector was up 12.64%, meaning it didn’t provide investors much outperformance. That’s especially not great for a member of the…
Treasuries Sharply Selloff On JCB Action
Stocks Inch Closer To Last Week’s High Monday’s action in the markets was all about the bond market, so I’ll only briefly review the stock market action. The S&P 500 was up 0.18% which pushed it close to last week’s high. It’s still far away from the January high if the market is going to…
Strong June Industrial Production, Weak July Manufacturing Capex Expectations
Decent Empire State Index As I mentioned in a previous article, earnings reports are coming out rapid fire, which means some of my economic analysis is delayed. I’ll now review two of the economic reports from last week. Firstly, let’s look at the Empire Fed Manufacturing report. The manufacturing economy was strong in June. The…
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