Stocks Fall Despite Mostly Great Earnings
Stocks Fall Slightly As Tobacco Has A Bad Day On Thursday, the S&P 500 closed down 0.57%. American Express was up 7.6% and Amazon was up 1.9%, but the consumer staples stocks were slammed as they were down 3.14%. The sector had a rough day because Phillip Morris reported a weak quarter as the heat not…
Trade War Is The Biggest Tail Risk
Empire State Index Is Very Disappointing The general business activity reported in the April Empire State Index was ok as it fell from 22.5 to 15.8. This missed expectations for 18.2. This decline signals the manufacturing index is weakening from the rapid growth pace seen in Q1. The new orders index was even weaker as…
The S&P 500 Is Close To Breaking Out Of Its Recent Downtrend
Stocks Rally Slightly On Wednesday This week has been great for equities as they rallied Wednesday again. It was a much smaller rally than the prior two days as the S&P 500 was up 0.08%. The chart below is my basic technical analysis which shows that the market has been making lower highs. The S&P 500…
Financials Have A Weak Earnings Season Despite Headline Beats
FAANG + BAT Considered The Most Crowded Trade The chart below shows the fund manager survey which asks what the most crowded trade was in April. As you can see, long FAANG and BAT was said to be the most crowded although it lost ground, falling to 33%. With NFLX’s rally on Tuesday after its subscriber beat,…
Investors Are Very Overweight Cash
Stocks Rally On Tuesday This week is shaping up well as the S&P 500 increased 1.07% on Tuesday, meaning it is 3.75% off the February 8th low. I still think the recent high of 2,787 is important. The S&P 500 is now 81 points away from that mark. The earnings season looks like it may actually be…
Netflix Beats Estimates Causing The Stock To Soar 9%
Netflix Is Spending To Grow Let's look at the earnings of all the TFAANG names because they are the market leaders. It will be tough for the S&P 500 to make a new all-time high if the momentum growth stocks don’t rally. Netflix is the poster child for this segment because it has a high…
Yield Curve Flattens & GDP Estimate Falls To 1.9%
Stocks Rally On Monday Investors were dismayed on Friday because 3 of the top banks beat earnings estimates, but stocks still fell. Then the Syrian air strikes were announced which made some, such as myself, think stocks would fall again on Monday. However, stocks were able to rebound as the S&P 500 was up 0.81%. This led the S&P…
Implied Expectations Are For 20.1% Earnings Growth In Q1
Bank Of America Reports Similar Results On Monday morning, Bank of America reported earnings. This is the last of the big 4 banks to report. The results were similar to the others as earnings beat estimates. Because the stock fell in sympathy with the other results on Friday, it rallied on Monday along with the overall…
Bank Stocks Lead The Market Lower
Stocks Fall On Friday Led By The Financials It's worth a mention that the Syrian air strikes that were feared by the stock market earlier this week were announced by President Trump on Friday afternoon. This could send stocks down on Monday. Geopolitical events are always difficult to determine as speculation swirls. I think the best approach is to be…
Stocks Rise As Political Tensions Ease & Jobless Claims Decline
Solid Rally On Thursday As Earnings Approach The S&P 500 was up 0.83% on Thursday. It is up 3.22% from the bottom of the recent range and it’s down 7.27% from the top. The market looked better than it was because Boeing rallied 3.1% which pushed the Dow up 1.21%. It’s silly to give Boeing so much importance;…
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