As the measures taken to slow the spread of the coronavirus (COVID-19) are beginning to take a toll on the economy through a reduction in activity in travel, dining, entertainment and other consumer spending categories, the U.S. government has been formulating ways to help stem the economic impact on both consumers and businesses. Two …
Uncertainty over the economic impact of the coronavirus (COVID-19) continues to negatively impact markets. The declaration of a national emergency on Friday allows coordinated action and financial resources to be used to shore up the economy and provide assistance to public health organizations. In our Dissecting Headlines section, we look at the national emergency …
As markets continue to experience volatility amid economic concerns from the spread of the coronavirus (COVID-19), we want to look at counterbalancing effects we are seeing to stabilize the economy. We mentioned last week we believe the economy should self-correct over time. While 10-year Treasury yields have fallen, the Federal Reserve also made the …
Global equity markets had their worst week in several years last week. The weekly decline, due to economic concerns surrounding the spread of the coronavirus (COVID-19), has pulled all major stock indices into negative territory for the year. Market volatility, which included several large intra-day swings, is indicative of the uncertainty. In our Dissecting …
Equities rallied last week as moderating economic data and Dovish comments from Federal Reserve Chairman Jerome Powell led investors to the conclusion that a short-term interest rate cut is on the horizon. The Fed Chairman’s speech on June 4th indicated the Fed would take appropriate action to maintain expansion of the economy in the …
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 …
The S&P 500 Index had a muted week but then generated some excitement on Friday with earnings from banks such as JP Morgan and Wells Fargo, an energy sector merger announcement with Chevron and Anadarko Petroleum, and Disney’s announcement of its direct-to-consumer media service. The S&P 500 Index closed the week +0.5% higher. The …
The S&P 500 closed out its best first quarter since 2009. The quarter came in like a lion and went out like a lamb. The giant January rebound (+8.0%) stepped down to more normal returns in February (+3.2%) and March (+1.9%). The quarterly gain almost erased the steep decline from the fourth quarter of …
The 2.9% move in the S&P 500 Index this past week erased the previous week’s 2.0% decline. The market shrugged off global economic worries and posted its best single week since last November. The U.S.-China trade meter shifted back to optimism this week. Oil continued its advance as well. WTI Crude was +4.4% for the …
Continue reading “Upbeat Week Heading into Next Fed Meeting”
US-China trade expiration is getting an extension until after Trump and Xi meet later in March. Chinese vice premier Liu He has been in Washington for negotiations all week and into the weekend. Both sides seem eager to do something constructive, but it looks like nothing will be finalized until later in March. This stops …
Continue reading “Extending the U.S. – China Trade Deadline”
A deal was struck to avoid a resumption of the partial U.S. government shutdown last week. Macroeconomic Crisis One averted, even though there may be political ramifications of the President’s decision to push ahead with funding the wall for the U.S. southern border through emergency measures. We’re much more concerned about economics, business, and investing, …
A Dissipating “Axis of Worry” Many of the concerns that caused the steep drop in the stock market in the fourth quarter of 2018 have started to dissipate. The combination of rising interest rates, a trade dispute between the U.S. and China, lower oil prices, and the U.S. government shutdown all rolled into what we …
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