@theMarket: Countertrend Bounce Ends Quarter But Sell-down Should ContinueBy Bill Schmick,
03:48PM / Friday, September 29, 2023 | |
September has been a story of higher-bond yields, a stronger dollar, and spiking oil prices. The higher these assets climbed, the lower the stock market fell. And now we enter October, a month that is notorious for providing negative returns at least in the first weeks of the month.
"Tread cautiously" was how I described September-October several weeks ago. History indicates that those are the two worst months for stocks. So far that advice has proven accurate. The stock market has had its worst decline all year and the prospects that this sell-off will continue are high despite the dead cat bounce we are enjoying right now.
While yields, the 0 Comments
Read More >> |
@theMarket: Oil Prices Boost Inflation But Don't Deter InvestorsBy Bill Schmick,
10:26AM / Saturday, September 16, 2023 | |
Stocks did remarkably well this week considering the macroeconomic data. That could be signaling further upside soon for the financial markets.
The decline in the inflation rate over the past six months has been encouraging. However, the recent climb in oil and gasoline prices threatens to put a crimp in the trend of declining inflation.
As I have written many times before, oil is the fuel that powers the global economy. It is involved in every stage of production and as such, its price has an enormous influence on the rate of inflation. Thanks to production cuts by OPEC-plus over the last few months, the price of oil has risen from roughly $65 a barrel to 0 Comments
Read More >> |
@themarket: Markets in a Topping ProcessBy Bill Schmick,
10:37AM / Saturday, August 26, 2023 | |
Fed Chairman Jerome Powell indicated that he was "prepared to raise rates further" at the Jackson Hole Symposium this week. Investors who were hoping to hear a more dovish outlook were disappointed.
The market walked away with an understanding that interest rates had two paths forward. The best case was flat for a longer period, or higher if inflation persists. About last year's address, Powell said "The message is the same: It is the Fed's job to bring inflation down to our 2 percent goal, and we will do so."
Beyond Friday's event, it was a slow week with little volume and plenty of volatility. Second-quarter corporate 0 Comments
Read More >> |
@theMarket: Bond Yields Up, Stocks DownBy Bill Schmick,
02:57PM / Friday, August 18, 2023 | |
The seasonal influence of what is normally a weaker August through September continued this week. All the averages have declined since the end of July and will continue to do so in the weeks ahead.
My expected pullback in the equity averages continued this week. So far in August, the S&P 500 Index is down 5 percent, the NASDAQ has fallen 7 percent-plus, while the Dow Jones industrials outperformed with a 2.4 percent decline. There are several reasons investors could point to in explaining the pullback, but for me the reasoning is simple.
All the markets were extended beyond reason after a great first half of the year. The prices of the Magnificent Seven 0 Comments
Read More >> |
@theMarket: Big-Cap Tech Earnings Bolster MarketsBy Bill Schmick,
04:31PM / Friday, July 28, 2023 | |
Corporate earnings results for Google and Meta helped push the averages higher this week, while Microsoft results were somewhat disappointing. The net result was higher stock prices for many sectors of the markets.
The most interesting change that I perceived in the overall markets this week was the FOMC's lack of impact on financial markets. Over the past year, these monthly two-day Fed events were market-moving. Investors parsed every word of every sentence in the meeting notes and spent hours and even days interpreting every answer that Chair Jay Powell uttered in the Q&A session.
This week, the Fed raised Fed fund rates yet again to a 22-year 0 Comments
Read More >> |
|
|
MEMBER SIGN IN
