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Market Brief – Tuesday 10/2/18

The DJIA set a new all-time high today as the S&P 500, Nasdaq-100 and Russell 2000 all closed lower. It now takes the average American worker 1,164 hours to buy one share of the Dow Jones Industrial Average! Treasury yields moved down in early trading, jumped on remarks from Fed Chair Powell that the Fed … Read more

Market Brief – Monday 10/1/18

U.S. equity futures flashed green on the news a trilateral trade deal between the U.S., Mexico, and Canada has been reached. While stocks are excited over this news, stocks did not sell off when President Trump sought to renegotiate NAFTA, so news of a renegotiated deal shouldn’t have much impact. Also, the changes in this … Read more

Weekend Market Brief – Sunday 9/29/18

Going into last week’s Federal Reserve meeting, speculators increased their already record short positioning on U.S. Treasury bonds to a new record short position. Speculators and investors alike are betting ten-year Treasury yields are headed somewhere between 4-6%, yet they continue to run into an impenetrable wall that is preventing yields from rising past 3.1%. … Read more

Market Brief — Friday 9/28/18

Asian equities moved higher, but European equities tumbled on news from Italy that they are targeting a budget deficit of 2.4% of GDP, which is higher than expected. Italian stocks and bonds got hammered. U.S. investors don’t seem too concerned about what is going on overseas as equities moved higher in the morning. Ten-year Treasury … Read more

Market Brief — Thursday 9/27/18

Asian and European equities were down following yesterday’s Fed rate hike. Foreign equities have been falling as the Fed tightens, which is what is supposed to happen. U.S. equities quickly shrugged off yesterday’s post FOMC drop as stocks quickly recovered from yesterday’s losses. Treasury yields were higher in early trading but were flat in overnight … Read more

Market Brief — Wednesday 9/26/18

The Federal Reserve raised the Federal Funds rate by 0.25%, as expected, and the stock market had the proper reaction. When the Fed tightens the money supply by raising interest rates, stocks should fall, and Treasury bonds should rise. All major stocks indices were down slightly, and Treasury bonds rallied off their recent bottom. The … Read more

Market Brief — Tuesday 9/25/18

The stock market was quiet ahead of the Fed’s press conference tomorrow where the Fed is expected to raise the Federal Funds rate by 0.25%. The market will be watching for a change in language to determine if the Fed plans to be more aggressive with future rate hikes. Treasury yields moved higher but were … Read more

Market Brief — Monday 9/24/18

A new tax in the form of tariffs will be hitting American consumer’s pocketbooks in the near future as both the Trump Administration and China fulfilled their promises to implement another round of tariffs today. Rumors are swirling that the Trump Administration will be moving forward with a larger $267 billion tariff against China. Hopefully … Read more

Weekend Market Brief – Sunday 9/23/18

China announced Saturday morning that they are cancelling the upcoming trade talks. Previously China proposed to send two mid-level delegations to the United States in hopes to ease trade tensions. China also stated that talks may resume sometime after the U.S. midterm elections in November. With Treasury yields jumping back to their recent highs, there … Read more

Market Brief — Thursday 9/20/18

Who is buying stocks at their all-time highs? Corporations. Margin debt growth has dramatically slowed due to higher interest rates. Retail and foreign fund flows have also slowed significantly. Corporations continue to repurchase their stock to allow their executives to cash in on their lucrative stock options. When the last marginal buyers are corporations, investors … Read more