January 2019 Jobs Report Was Great
January 2019 Jobs Report Once again, the jobs report beat estimates by about double. The January report showed there were 304,000 jobs created. This beat estimates for 158,000. The BLS report beat the ADP report’s estimate for private sector job creation. ADP showed 213,000 and the BLS report showed 296,000 jobs created. The bad news…
Amazon Reports Weak Guidance & U.S. Manufacturing Accelerates In January
Amazon Beats Estimates: Stock Falls Amazon was expected to disappoint investors because of weakness from the cloud. The firm disappointed investors because of the expected increase in investments and decelerating revenue growth. And also weak guidance, but not because of the cloud. Specifically, Q4 EPS was $6.04 which beat estimates for $5.68. Revenues were $72.4…
S&P 500 Has Its Best January Since 1987
S&P 500 - Another Nice Rally: This Time Led By Facebook After the worst December since the Great Depression, the S&P 500 had its best January since 1987. Don’t let the year 1987 scare you. While I’m bearish on stocks, we aren’t doomed to repeat the crash of October 1987. The S&P 500 was up 0.86%…
Boeing & Microsoft Earnings Reviews
Boeing & Microsoft - Big Shift In Rate Hike Expectations Fed has moved with the whims of the stock market for the first time since Powell became chairperson. The Fed became dovish in late December. That helped spark the rally since then. Fed’s statement reflected this new guidance. If the Fed would have made a smaller…
Dovish Fed & Key Earnings Reports - Stocks Are Loving Them
Dovish Fed - Big Rally Wednesday As Stocks End 7 Day FOMC Losing Streak The stock market rallied sharply on Wednesday. S&P 500 increased 1.55%, the Nasdaq rallied 2.2%, and the Russell 2000 increased 1.05%. Equities loved the great earnings report from Boeing, the weak earnings report from Apple, and the dovish Fed guidance. Apple…
Home Price Growth Was The Lowest Since January 2015
Home Price Growth - Housing To Hurt Q4 GDP Growth It’s pretty obvious at this point that the housing market was terrible in November and December. Prices were unaffordable especially in some cities in the West. The stock market was volatile, and the decline in interest rates didn’t start helping the housing market by then.…
Apple Gives Weak Q2 Revenue Guidance
Apple - Stocks Fall Slightly As Most Important Week Continues S&P 500 fell 0.15% and the Russell 2000 fell 0.14%. The first 2 days of the most important week of the year have been duds. That’s no surprise. Earnings guidance has been weak, and stocks were very overbought starting the week. The Nasdaq fell 0.81%…
Consumer Sentiment Weakens In January
Consumer Sentiment - Redbook Growth Falls Sharply Year over year same store sales growth in the Redbook weekly report declined in the week of January 26th from 7% to 5.8%. We are now back to the doldrums of early January where growth was decelerating sharply. This is perfectly in line with the consumer sentiment report I…
Caterpillar & Nvidia Send Stocks Lower
Caterpillar - Stocks Fall Monday Stocks finally took a breather on Monday as they fell modestly. S&P 500 fell 0.78%, the Nasdaq fell 1.11%, and the Russell 2000 fell 0.63%. Equities were on a 5 week winning streak heading into Monday as the S&P 500 was up 6.3% year to date. Stocks still need to fall further…
Government Shutdown To Hurt Q1 GDP Growth By 0.4%
Government Shutdown - Potential Effects The government shutdown might resume on February 15th. As for now, the CBO released the potential effects from the shutdown on past and future GDP growth. Negative impact on Q4 GDP growth will be 0.2% and the negative impact on Q1 will be 0.4%. Government Shutdown - Reports Still Delayed It’s…