Tesla & Facebook Fall After Hours

Facebook’s 2018 Spending Growth Disappoints Facebook - FB reported earnings on Wednesday; it’s the second to last major tech firm to do so. Apple will be the last one on Thursday. Tech is about 24% of the S&P 500 and it’s about 24% of total earnings. Facebook reported a great result, but was hindered by the…

Employment Costs Rise In Manufacturing

The Banks Have Had A Great Run Globally The chart below shows an interesting global trend which has been occurring in the past few quarters. As you can see, bank stocks’ 12 month forward multiples are rising in Japan, America, the U.K., and Europe. American net interest margins are improving as the Fed is raising…

Consumer Confidence Is At A 17 Year High

Housing Prices Headed Up? Let’s look at the housing market. It’s important for housing prices to increase in a steady manner to help people’s net worth improve. As we’ve discussed, savings rates are down and real earnings growth has been stagnant for non-supervisors. The wealth effect might just be all we have to keep the…

Lower Income Group Leveraging Up

Central Bankers Flip Flop It appears that President Trump will pick Powell in the next few days as there’s an 86% chance on the PredictIt website. While the decision is known, the chart below provides context to how it may have been made. As you can see, the chart shows the policy positions of each…

Texas Manufacturing Strongest In 10 Years

No Volatility? It’s important to constantly review the level of volatility in the market to quantify how unusual the market has been this year. To a long term investor, normal changes in volatility shouldn’t matter. However, when records are constantly broken, we need to re-evaluate the market to see what’s going on. The Dow Jones…

Gradual Corporate Tax Cuts Might Be Coming

Stocks Don’t Like Gradual Tax Cut Stocks fell slightly on Monday on the prospect that corporate tax rates could be lowered gradually. The small caps are affected the most by this legislation because they have the highest percentage of domestic earnings. This caused the Russell 2000 to fall 1.15%. We are in the lead up…

The Nasdaq Soars On Great Earnings From 4 Big Tech Names

Tech Continues To Ramp Friday was an amazing day for tech stocks as the Nasdaq increased 2.20%. The Dow rallied a few days ago because big companies within it reported great results. Today was the Nasdaq’s turn as MSFT, GOOGL, and AMZN all reported great results. Even companies which didn’t report were in on the…

Amazon, Microsoft & Google Report Great Results

AMZN, GOOGL & MSFT Beat Expectations Thursday afternoon was a big moment for the market because AMZN, GOOGL, and MSFT reported great results. This will send the Nasdaq soaring into the holiday season. AMZN stock had stalled in the past few months as the company reported a bad quarter 3 months ago. Thursday’s report caused the stock…

ECB Tapers QE Exactly The Amount Expected

On Thursday the ECB released its plan for QE for 2018. It was exactly as expected as the bond buying was cut in half to 30 billion euros per month for 9 months and then lowered to nothing over the next 3 months. Draghi made some missteps this year with the way he handled guidance,…

Financial Conditions The Loosest Since 1993

In keeping with the great reports elsewhere, the Markit Flash PMI showed economic strength. Private sector growth reached a 9 month high in October mainly because of the improvement in manufacturing. The composite output index was 55.7 which was an improvement from last month’s report of 54.8. The services index improved from 55.3 to 55.9…