BMO Capital made a series of upgrades and downgrades this Wednesday. The analyst entity moved positions on Cott Corporation Common Stock, Dr Pepper Snapple Group, Coca-Cola, and PepsiCo. While Cott Corporation and Dr Pepper gained confidence, BMO … [Read more...]
Q1 GDP and March Durable Goods Revised Higher, April Somewhat Lackluster
Q1 GDP was revised higher, as was March Durable Goods. April data was somewhat lackluster. What does this mean for the economy? Allow me to explain. The second reading of Q2 2017 U.S. GDP resulted in an upward revision to 1.2% from an initial … [Read more...]
True or False? Yesterday’s Market Selloff Was About Trump
Yesterday's market selloff was about Trump, true or false? The answer: True and false. Allow me to explain. To anyone who is not blinded by ideology or unrealistically optimistic risk assets (including equities and high yield bonds) were … [Read more...]
Weak Housing Starts and Building Permits Data Behind Cautious Tone in Bond Market
The bond market has taken on a very summer-like feel and it is not because temperatures could top 90 degrees here in the Northeast, later this week. The mixed data and the Fed's commitment to a gradual, but historically moderate, monetary policy … [Read more...]
FireEye Inc (FEYE) Shares Fly Sky High as Ransomware Spreads Worldwide
It's not unusual for cybersecurity shares to see increased favor after major cyber attacks. This week sees that trend continue on a mega-scale. The leading vendors of cyber safety services are watching their shares rise this Monday. The spikes come … [Read more...]
Fed Looks Past Slow Growing Economy, Interest Rates Remain Unchanged
Wednesday, the FOMC decided to leave Interest rates unchanged, in a range of 0.75% and 1.00%. The Fed gave little color as to the pace of policy renormalization, other than saying that gradual policy rate increases should be warranted. The FOMC … [Read more...]
Signs Indicate the Current Economic Cycle Could be in its Latter Stages
There have been several signs indicating the current economic cycle could be in its latter stages. Auto sales and auto lending have been at the forefront of indicators auguring for late cycle. Today we have news that April SAAR Ford vehicle sales … [Read more...]
The Yield Curve and a Crazy Little Thing Called Rates
As much as I am tired of discussing the yield curve, new comments and theories appear each day. Some defy logic. Others are humorous. A few make sense. Crazy Little Thing Called Rates The theory that makes the most sense to me is: The UST curve … [Read more...]
Appetite for Bonds Driven by Demographics, Not Fear
Yesterday, the equity market rallied after the strongest read of Consumer Confidence since 2000. Markets continued to climb on executive orders to ease regulations on energy industries, particularly coal and comments by Fed vice chair, Stanley … [Read more...]
Failure to Launch Trump Policies Could Send Long Rates Plunging
The UST curve continues to flatten. At the time of this writing, the benchmark 2-year to 10-year UST curve stood at 109.66 basis points. This is the flattest the benchmark UST curve has been, since Election Day 2016. As I have written for months; … [Read more...]
Two Surprises in Today’s Economic Data
We had two surprises in today's economic data. Weather may have played a role in both surprises. Initial Jobless Claims for the week ended 3/18/17 surged to 258,000 from a prior reading of 243,000. The Street consensus called for 240,000 new jobless … [Read more...]
Capital Markets Fall in Love With Strong Manufacturing Data
Yesterday, the equity market surged higher and UST yields increased due to pro-growth policy comments, by President Trump and strong economic data. We discussed President Trump, yesterday. My view is that markets were cheered not by what Mr. Trump … [Read more...]
Donald Trump, Hillary Clinton or the Dali Lama? It’s Not The Messenger That Matters to The Markets
After flattening yesterday, following hawkish commentary by Fed officials (which have pushed the probability of a March Fed Funds Rate hike to over 80%, according to Bloomberg), the curve steepened this morning, due mainly to President Trump's … [Read more...]
Markets Brace for Testimony From Fed Chair Janet Yellen
Today, the market is focused on economic data and Fed Chair Janet Yellen's testimony before Congress (as well as any comments from the Tweeter in Chief). There has been much hubbub about the bond market not sufficiently pricing in a March Fed Funds … [Read more...]
PayPal (PYPL) Scores Monster 2016 Gains Along With eBay
Paypal Holdings Inc shared its Q4 revenues on Thursday after market closing. The same evening had Microsoft Corporation announce its own quarter earnings. Those interested in the Windows maker’s report can click here. As for PayPal, the last three … [Read more...]
Is it Smart to Invest with Personal Loans?
The two major goals of investments are capital preservation and capital multiplication. Good investors know that they must strive to keep their investment capital intact and that the capital must yield an income or record an increase in value. … [Read more...]
Reaction of the USD to the Durable Goods Orders
Latest figures published relating to the Durable Goods Orders are set to spark a decline in the USD. The results place pressure on the Federal Open Market Committee to increase rates at the last meeting of the year, taking place on December 14th. … [Read more...]
Trump Has a Generous Plan for Dealing U.S. Student Debt Crisis
Donald Trump has beaten the odds to become the 45th President of the United States in a keenly fought election with Hillary Clinton. Trump deviated from his usually brash and arrogant rhetoric during victory speech in the wee hours of Wednesday … [Read more...]
Is The Stock Market On The Verge Of A Major Plunge?
With stocks up about 6% this year as of Friday’s close, one might assume that the stock market is having an average year. And in terms of return compared to times past, that’s probably a fair assessment. When you peel back the onion, however, you’ll … [Read more...]
Wal-Mart Stores, Inc. (WMT) to Cut 7,000 Jobs
Wal-Mart Stores, Inc. is expected to cut 7,000 back-office jobs. Some of the positions which are to be eliminated belong to some of the highest paid hourly workers in stores. Thus, the firm plans to cut thousands of back office positions around the … [Read more...]