3M, Starbucks, & Amazon Earnings Results Reviewed

3M - Microsoft & Facebook Can’t Push S&P 500 Higher Before getting into 3M, let's review MSFT and FB. Even though most firms have beat earnings estimates and Microsoft and Facebook soared on Thursday, the S&P 500 still fell 4 basis points. Those two certainly helped the Nasdaq as it increased 0.21%.  Russell 2000 and…

Netflix Is At Risk & Microsoft Beats Estimates

Netflix - At Risk Netflix could be in trouble as the landscape of produced streaming video content changes. Companies that own the content in Netflix’s library are starting to create their own subscription services. First is Disney as the firm is launching its Disney+ subscription service this November. It will cost $6.99 per month.  In…

Stocks Fall Slightly But Firms Report Solid Earnings After Hours

Stocks Fall Slightly - Yet Stock Market Isn’t As Overbought As It Feels The stock market fell slightly on Wednesday after hitting a record high on Tuesday. The S&P 500 fell 0.22%, the Nasdaq fell 0.23%, and the Russell 2000 rose 0.19%. Small caps finally outperformed. The market fell because it is incredibly overbought.  However,…

Latest Housing Reports A Mixed Bag

Latest Housing Reports - Redbook Sales Growth Improves I’m always looking for new ways to interpret data. I’m never going to completely discard a report because economic reports’ accuracy varies. For example, jobless claims have been extremely low even though the labor market probably isn’t full based on the prime age labor force participation rate. …

Market Record High Recaptured In Only 4 Months

Market Record High - S&P 500 Hits A New Record Market Record High - On Tuesday, the S&P 500 increased 0.88% as earnings have been coming in strong. The close of 2,933.68 surpassed the previous record high set last September. As you can see from the chart below, it took 95 days for the market…

Earnings Results - Solid Initial Q1

Earnings Results - Do Earnings Matter? Earnings Results - Short answer to the question if earnings matter is “yes they do.” Earnings are the only thing that matters to stocks. Every factor that affects stocks only matters as much as it affects their future earnings. The chart below makes it look like earnings don’t matter because…

Stocks Anticipate Big 2 Weeks Of Earnings

Stocks Anticipate - Slight Rally As The S&P 500 Inches Closer To A New Record On Monday, S&P 500 increased 0.1% which was enough to hit a new closing high for 2019. It is inching closer to the September high. It's about 23 points away from that threshold. It made sense that the market was…

April Markit PMI Weak - But Decent Q1 GDP Growth

April Markit PMI - 2.2% GDP Growth Q1 initial GDP reading will be released on Friday. To be clear, this reading might be far from where it ends up after revisions. However, there isn’t an obvious bubble, like tech and housing in the past 2 cycles. Also, there are very few indicators signaling a recession is…

50 Day Moving Average - 70% Of S&P 500 Stocks Are Above

50 Day Moving Average - Just Missed Record High The S&P 500 just missed setting a new record high in the week shortened by Good Friday. On Thursday it increased 16 basis points to 2,905.03 which is about 2 points below its high for the year and 25 points below its record closing high.  Nasdaq increased…

Jobless Claims Fall To A Cycle Low

Jobless Claims Plummet The labor market is likely healthy as jobless claims plummeted again as both the weekly claims and the 4 week average are at cycle lows. They are at their lowest levels since 1969 when the labor market was half the size it is now. Keep in mind, the number of people applying…

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