We head into the end of the first quarter with all three major U.S. equity indices positive for the year. We are fortunate to be in a better economic and social environment versus this time last year when the initial impact of the COVID-19 pandemic was driving equity markets lower and forcing people into …
The Federal Reserve acknowledged some improvement in the economy in its Wednesday Federal Open Market Committee (FOMC) meeting statement, while stating that inflation remains below target. The economic improvement versus inflation battle continues in the fixed income and equity markets. This past week “Team Inflation” won as the equity markets declined and bond yields …
Springing Forward! The equity markets moved to the upside last week. Investors seem to be a little more comfortable with bond yields. Two inflation measures for February, the CPI and PPI, showed an increase in inflation mainly tied to increasing energy prices. The February CPI showed 12-month rate of inflation for consumer goods and …
Continued upward movement in interest rates pressured stocks during the week, but a strong Employment Report ended the week on a stronger note. The Dow Jones Industrial Average was +1.8%, the S&P 500 Index was +0.8%, and the NASDAQ 100 Index was –1.8%. The U.S. economy added 379,000 jobs in February versus an expectation …
A sharply steepening yield curve pressured stocks last week. The Dow Jones Industrial Average was –1.7%, the S&P 500 Index was –2.4%, and the NASDAQ 100 Index was –4.9%. We are nearing the end of the fourth quarter earnings season with 479 in the S&P 500 Index having reported earnings. Eighty percent of companies …
Optimism on U.S.—China trade helped markets extend gains for the third straight week. Stocks are at record levels as the third quarter earnings season slows into its final weeks. Of the 446 companies in the S&P 500 that have reported 3Q earnings, 74% have exceeded expectations, 7% have met expectations and 19% have reported …
The corporate earnings season has so far been less negative than originally anticipated. Of the 199 companies that have reported 3Q earnings, 78% have exceeded expectations, 7% have met expectations, and 15% have reported below expectations. This has improved current earnings estimates for the quarter to a 2.0% decline in year/year earnings on 3.4% …
Investors were surprised late last week by the announcement that the U.S. would impose a 5% tariff on all goods imported from Mexico and gradually increase them until the flow of illegal immigrants stopped. The economic and political uncertainty of this policy added to the uncertainty currently in the market from the U.S.—China trade …
Despite increased tensions with Iran and the start of the summer driving season, crude oil had its steepest decline since the late December lows, down 6.6% for the week. The equity markets also extended their recent decline with most averages adding to multi-week declines. As a follow-up to last week’s comments on the American …
U.S.-China Trade dominated the headlines last week. As trade talks stalled, the U.S. increased the previously announced tariffs on Chinese goods from 10% to 25%. The U.S. is also investigating options for tariffs on an additional $300 billion of Chinese-made goods not currently under tariffs. The Chinese Vice Premier spent last week in the …
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