@theMarket: Have Odds Improved for a Fed Rate Cut?By Bill Schmick, 03:50PM / Friday, May 17, 2024 | |
This week's inflation data heartened investors. Equities and commodities rose while bond yields and the dollar fell. The question is whether the data will convince the Fed to relent on keeping interest rates higher for longer.
If we take a long-term view, the Consumer Price Index (CPI) change was minuscule. For April, inflation gains slowed from 3.5 percent to 3.4 percent, while core inflation increased over the last 12 months by 3.4 percent compared to 3.5 percent in March. That's no big deal, and yet, the numbers did break the trend of warmer CPIs over the last three months.
The cooler inflation announcement caught investors by surprise since most 0 Comments Read More >> |
@theMarket: Markets Flirt with All-Time HighsBy Bill Schmick, 03:18PM / Friday, May 10, 2024 | |
Like birds on a wire, stocks wobbled early this week neither moving higher nor lower. Higher jobless claims and an okay Treasury auction nudged the indexes towards the goal line with the S&P 500 Index above the 5,200 level for the first time in a month.
However, there is still a lot of indecision out there. Growth seems to be slowing. Inflation remains sticky. Consumer confidence is falling, and the Fed is on hold. Countering those negatives, there are some positives. Corporate earnings have been good. Yields remain in a range and the dollar has pulled back from highs. Neither the bulls nor the bears have enough data to end this stalemate. This week should resolve the 0 Comments Read More >> |
@theMarket: Whipsaw Action Leaves Markets HigherBy Bill Schmick, 11:22AM / Saturday, May 04, 2024 | |
It was a week where macroeconomic data, corporate earnings, and the Federal Reserve dictated the direction of the markets on almost a daily basis. By the end of the week, the verdict was a plus for the bulls.
On Friday, the non-farm payrolls indicated that the labor market cooled notably in April. The U.S. economy added 175,000 new jobs which was a lot lower than the expected job gains of 240,000. The unemployment rate rose to 3.9 percent. What is bad news for the economy is good news for the stock market since weaker macroeconomic data means the Fed may cut interest rates sooner rather than later.
At the Federal Open Market Committee meeting on Wednesday, 0 Comments Read More >> |
@theMarket: Two Steps Forward, One Step Back Keep Traders on Their ToesBy Bill Schmick, 02:09PM / Friday, April 26, 2024 | |
The S&P 500 bounced by more than 2 percent this week, retracing almost half of the 5 percent decline we have suffered so far in April. The jury is still out on whether this is only a dead-cat bounce or a signal that the downside is over.
It was a week of mixed messages for sure. Good earnings drove markets up on Monday and Tuesday. About 43 percent of companies listed on the S&P 500 Index have reported so far. Overall, 57 percent of them are beating estimates. Those that have been beaten are doing so by a median of 8 percent. There have been stand-out winners and losers among them.
Meta, for example, had good results, but its future guidance (higher 0 Comments Read More >> |
@theMarket: Markets Sink as Inflation Stays Sticky, Geopolitical Risk HeightensBy Bill Schmick, 03:11PM / Friday, April 19, 2024 | |
Geopolitical risk, inflation, higher for longer, rising bond yields, take your pick. There are several reasons for the stock market sell-off. The bad news for investors is that after a counter-trend bounce, the selling should continue.
There are at least half a dozen reasons why the markets were down again this week. If you have been following my columns, you know that I have been expecting this decline for weeks. The truth is that this pullback is long overdue. I believe it is a healthy, if painful, development that could last a few weeks.
I am not discounting the reasons for this decline. The attack on Israel last weekend was gut-wrenching. My next-door 0 Comments Read More >> |
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