S&P 400 Hits A Record High
Another Rally- Stocks Are On Fire On Friday stocks had an across the board rally as all major indexes went up. The S&P 400, which is a mid cap index, hit an all-time high as it was up 0.5%. The S&P 500 outperformed the Nasdaq and Russell 2000 as it was up 0.31%. The S&P…
10 Year Treasury Yield Has A Mini Crash
Reversal Thursday I mentioned after Wednesday’s stock market close that the tech stocks and the small caps were overbought. We saw a reversal of the recent trading action on Thursday as the Dow and the S&P 500 outperformed the Nasdaq and Russell 2000. The big caps rallied after underperforming this year. McDonald’s led the Dow…
More Job Openings Than Unemployed Workers
Kicking The Can Down The Road With the recent acceleration in economic growth, the new trend is analysts at the major investment banks pushing off their recession prognostications by a year or two. When the economy falters, it’s very easy to call for a recession because this cycle is about to be the longest since…
Stocks Rally As Economic Data Signals 3.7% GDP Growth
Another Rally On Wednesday It was another record day for small caps and tech stocks as the Russell 2000 was up 0.68% and the Nasdaq was up 0.67% on Wednesday. The S&P 500 was up 0.86% to 2,772. The next big technical milestone is 2,787 which is the 2nd highest peak in history. It was…
The End Of The Buyback Blackout Period Is Helping Stocks
Buybacks Helping Stocks There were a lot of reasons stocks fell during the Q1 earnings season. The results were great, but stocks were in the midst of a sentiment shift catalyzed by the unwind of the short volatility trade. Since then, fears of geopolitical strife and trade wars have hurt performance. One of the lesser…
Refuting A Bearish Argument: The Economy Is Accelerating
Record Highs In Tech, Small Caps, And Microcaps I have been very bullish on stocks recently which has been the correct position to take as the S&P 500 has broken out of its recent tight range. It was up 0.07% on Tuesday. Tuesday was a microcosm of the recent action since the S&P 500 was…
Q2 GDP Expectations Continue To Climb
Motor Vehicle Sales Motor vehicle sales are a big portion of consumer spending which goes into GDP. I have been expecting 2018 motor vehicle sales to be weak, but I expect a pickup in GDP growth in Q2. As you can see in the chart below, total vehicle sales were 16.9 million which missed estimates…
Record High For The Nasdaq
Technical Break Out For Stocks Even though the S&P 500 only rallied 0.45% and the Nasdaq only rallied 0.69%, this was one of the best days of the year for the market because it was a break out. The Nasdaq hit a record high as Apple, Amazon, and Microsoft drove the index higher with record…
Earnings Growth For Q2 Expected To Be 18.9%
Great Earnings Coming in Q2 The financial media acts as if the earnings reporting season is the only time that earnings matter and acts as if stocks beat estimates they should move higher. Those are incomplete understandings of earnings. Firms are expected to beat estimates, so raising guidance and beating the whisper number are more…
Stocks Rally On Strong Jobs Report
Stocks Still Range Bound The stock market rallied sharply on Friday because of the great jobs report. The S&P 500 was up 1.08% and the Nasdaq was up 1.51%. It’s very rare to see the stock market rise and oil fall, but that’s what happened on Friday as WTI fell 3% to $65.81. The spread…