Market Brief – Tuesday 4/30/19

Stocks started the day lower on reports that China’s manufacturing sector is slowing down again after investors jumped at the rebound in China’s manufacturing sector for March. It seems as if the large credit injection by the Chinese government has fizzled. Treasury yields followed stocks lower and while stock prices rose after the bad economic … Read more

Market Brief – Monday 4/29/19

Stock prices continue to favor the risk takers who remain happy as long as corporate executives are willing to lie to them about a second-half rebound. Corporate earnings projections show a resumption of double-digit earnings growth, even though there is no evidence in the economic data to suggest there is even the slightest hint of … Read more

The Next Bull Market Isn’t in Stocks

After one of the longest Bull markets in history, investors still believe stock prices have a few more years to another decade to run higher. For most retirees who have been forced into buying stocks due to low-interest rates, another decade of rising stock prices is a huge blessing. Stock prices would need to rise … Read more

Market Brief – Friday 4/26/19

After the blow, out first quarter GDP print of +3.2%, which took everyone by surprise, stock prices and Treasury yields both traded lower. The market makes the news, not the other way around. Wall Street has been advertising how great it is to buy stocks at the highs but as stock prices rise, there are … Read more

Market Brief – Thursday 4/25/19

Stocks fought back against early losses as investors remain focused on initial jobless claims and corporate forward guidance. Initial jobless claims jumped last week after falling for five straight weeks where it managed to fall below 200k claims. March Durable Goods Orders rocketed higher to +2.7% MoM as preliminary data shows improving consumer demand. On … Read more

Market Brief – Wednesday 4/24/19

Stock prices continue grinding higher as earnings are coming in at a negative annualized rate, but analysts are reducing their estimates prior to reporting so companies can miss on earnings while beating on expectations. For the moment, the focus of the stock market is on expectations. Treasury yields headed lower in early trading after failing … Read more

Market Brief – Tuesday 4/23/19

Stocks started the day higher as corporations are beating their earnings-per-share estimates due to last-minute analyst downgrades, while revenue numbers continue to fall short. Treasury yields are falling after 10-year Treasury yields were rejected at their resistance level in overnight trading. Dollar sensitive sectors, such as gold, silver and agricultural commodities were all down in … Read more

Market Brief – Monday 4/22/19

Looking back to Friday, Housing Starts fell -0.3% MoM in March after falling -12% MoM in February. Single-family starts are down -4.6% on an annualized basis and building permits are down -6.2% on an annualized basis. In overnight trading, South Korea’s preliminary trade data for the first twenty days in April are not optimistic. On … Read more

Deficits Don’t Matter Until They Do

There’s an old saying on Wall Street that things don’t matter until they do. Deficits, debts, earnings, profits, cash flow, fundamentals and anything related doesn’t matter until it does. When it does matter, the stock market usually reacts rather negatively. How and when do these things matter, and why? The answer is rather simple – … Read more

Market Brief – Thursday 4/18/19

U.S. Treasury yields are headed back down and continue to lead the broad stock market, which will eventually lead to lower stock prices. Today’s opening move in Treasury yields confirms yields are in a downward trend and that the bond market is not buying into the hype the equity market is selling. Retail Sales rocketed … Read more