Tea Leaves

June 14, 2021

  Despite continued inflation pressures seen in the May Consumer Price Index (CPI) report, the markets rallied into week’s end. The Dow Jones Industrial Average closed the week –0.8%%, but the S&P 500 Index was +0.4%, and the NASDAQ 100 Index was +1.7%. The U.S. 10-year Treasury bond yield decreased to 1.462% at Friday’s close …

Tip of the Taper

June 7, 2021

  The weaker than forecast employment report rallied stocks and bonds on Friday on the expectation it would keep the Fed on hold. This was despite the Fed’s announcement it would begin selling the excess corporate bonds and ETFs it purchased during the pandemic to stabilize markets. The Dow Jones Industrial Average closed the week …

Mix and Mingle

June 1, 2021

  Investors appear to be absorbing the inflation story well as the equity markets all posted positive returns for the week. The Dow Jones Industrial Average closed the week +1.0%, the S&P 500 Index was +1.2%, and the NASDAQ 100 Index was +2.0%. The U.S. 10-year Treasury bond yield decreased to 1.593% at Friday’s close …

Hitting the Road

May 24, 2021

  It was a mixed week in the equity market with the NASDAQ 100 Index in the green and the S&P 500 Index and Dow Jones Industrial Average in the red. The Dow Jones Industrial Average closed the week –0.4%, the S&P 500 Index was –0.4%, and the NASDAQ 100 Index was +0.2%. The U.S. …

Take a Breath

May 17, 2021

  The early part of the week saw stocks under pressure from inflation concerns. A rally on Thursday and Friday triggered by the easing of mask wearing guidelines by the Center for Disease Control recouped some of the losses. The Dow Jones Industrial Average closed the week –1.1%, the S&P 500 Index was –1.3%, and …

Employment Debate Heats Up

May 10, 2021

  Bad news in the monthly employment report was good news for stocks on Friday. A much weaker employment report than anticipated was seen as a signal the economy is not as frothy as expected, causing equities to rally. The Dow Jones Industrial Average closed the week +2.7%, the S&P 500 Index was +1.3%, and …

Are You Ready for the Summer?

May 3, 2021

  The quarterly earnings reporting season is past the half-way point. Of the 303 companies in the S&P 500 Index that have reported earnings to date for Q1, 87.1% have reported earnings above analyst estimates. This compares to a long-term average of 65.3% and prior four quarter average of 75.5%. The Dow Jones Industrial Average …

Over the Hump

April 26, 2021

  Despite generally positive corporate earnings reports, the equity markets were flattish last week on concerns surrounding proposals from the White House for higher capital gains taxes. Of the 123 companies in the S&P 500 Index that have reported earnings to date for Q1, 85.4% have reported earnings above analyst estimates. This compares to a …

Crude Math

April 19, 2021

  The equity markets responded positively to the first week of first quarter earnings. Of the 44 companies in the S&P 500 Index that have reported earnings to date for the first quarter, 84.1% have reported earnings above analyst estimates. The Dow Jones Industrial Average closed the week +1.2%, the S&P 500 Index was +1.4% …