Strong ISM PMI Shocks The Bears
September PCE Inflation Low Again Inflation isn’t a worry in yet another report. September PCE reading showed headline inflation rose from 1.3% to 1.4% which missed estimates for 1.5%. Core PCE inflation was up from 1.4% to 1.5% which missed estimates for 1.7%. While inflation wasn’t an issue in this report, the market is looking…
Major FAANG Tank
Tech Earnings & COVID-19 Fears Tank Markets The stock market fell because of tech earnings and COVID-19 cases spiking on Friday. With all the FAANG stocks cratering except Alphabet, we all wonder if there was some profit taking and some fear of rising rates. Oddly, even though stock investors fear a slowdown because of COVID-19…
Government Helps September Income Growth
September PCE Shows Better Income Growth Monthly personal income growth in September was 0.9% which beat estimates for 0.3%. This was a good reading because the comp was revised higher by 2 ticks to -2.5%. Obviously, the comp was still easy. Yearly personal income growth rose from 5.5% to 6.2%. One problem with this reading…
Big Tech Earnings Crash The Nasdaq
Thursday Calm Before The Storm The stock market rallied nicely on Thursday as both the S&P 500 and the Russell 2000 rose 1.19%. Plus, the Nasdaq rose 1.64%. Tech stocks rose into earnings. Twitter, Apple, Facebook, Amazon, and Alphabet all reported after the close. They all fell after their earnings reports after hours except Alphabet. …
Another Good Jobless Claims Report
Solid Jobless Claims Report Again Even with all the COVID-19 mania and fears of a slowdown, the jobless claims report in the week of October 24th was good again. That’s 2 good weeks in a row. Seasonally adjusted initial claims fell from 791,000 to 751,000 which was below estimates for 758,000 and just 1,000 above the…
Investors Fear Renewed COVID-19 Outbreak
Brutal Correction On Wednesday Fear of COVID-19 exploding and new shutdowns finally got to the market as there was a major correction on Wednesday. S&P 500 crashed 3.53%. There was across the board selling. It was less of a factor day and more of a panic day. Microsoft’s earnings related decline took down the Nasdaq…
Is The Economy Set To Tank In November?
Worries Are Here Even though firms literally just reported great earnings this week, worries are back because traders believe Q3 is meaningless now that the economy is worsening. That’s true to an extent. The economy will be in worse shape in November because of COVID-19. A difference between investor fears and these earnings reports is…
COVID-19 Trade Is On... For Now
Another Big Selloff For Small Cap Value COVID-19 trade is on which means large cap growth will outperform small cap value most days. Tuesday was an ok day for large cap tech and another disaster for small cap value. Bad COVID-19 data suggests this will continue, but good vaccine news can change that immediately. It’s…
Shutdowns Are Back As Cases Rise In France and American Midwest
Vaccine Seems So Far Away Later in this article, we will discuss the latest COVID-19 numbers. In this section, let's discuss the lockdowns. Lockdowns appear to be spreading like March. Except for the fact that we don’t have a fiscal stimulus coming. And we know the impact COVID-19 has in the short term on people’s…
Big Monday Decline As COVID-19 Cases Rise
Monday Blues The stock market had a rough Monday, although it did rally solidly off its afternoon low. S&P 500 fell 1.86%. It increased 1.06% from its low at 1:35PM. It’s fairly common to see the market bottom between 2:30 PM and 3:30 PM on big down days, but this bottom was earlier than usual. …