Fed Rates - Stocks Rally On Election Day With the 0.63% rally in the S P 500 on Tuesday, the stock market is only down 6% from its September peak. It is up 3.06% year to date. This rally continues to vindicate my short term bullishness. I’m still bullish in the short term. CNN Fear and
Consumer Confidence - Strong Redfin Sales Report The Redfin report showed year over year same store sales growth for the week of November 3rd was 6.1%. That beat the previous week’s growth of 5.9%. This is the strongest growth rate since the beginning of October. It signals the holiday shopping seas
Multiples - Apple Amazon Fall, But Stocks Rally The S P 500 rallied 0.56% on Monday. Berkshire Hathaway’s Class B shares rallied 4.7%. That's because the company bought almost $1 billion of its shares back in August. In the fist 9 months of the year the firm purchased $24.4 billion worth of shares.
Strong Markit PMI Services The Markit PMI services index was similar to the manufacturing survey. Its final reading was very close to the preliminary mid-month reading. Final October reading of 54.8 beat the consensus and mid-month reading of 54.7. It beat last month’s report which was 53.5. Improve
Fed Rate Hikes - Mixed Action On Friday Before delving into Fed rate hikes, let's review Friday's market action. With all the volatility in the past few weeks, it appears investors aren’t focused on the midterm elections. At worst, I think the election won’t affect stocks. At best, it will inspire a
Apple - Another Solid Rally On Thursday In the past 3 days the S P 500 is up 3.75%. It was up 1.06% on Thursday. Nasdaq was up 1.75%, but that looks to be short lived. Apple fell after hours. Tussell 2000 increased 2.22% and the VIX fell 8.9%. Even though stocks have been roaring higher
Wage Growth - Jobless Claims Job Cuts Jobless claims and Challenger Job Cuts report didn’t match because one time layoffs boosted job cuts. The jobless claims report signals all is fine in the labor market. Number of claims fell from 216,000 to 214,000. There wasn’t much of an effect on the labor ma
Strong ADP Report The October ADP private sector jobs report showed 227,000 jobs were created as you can see from the chart below. This beat the consensus by a wide margin. Consensus was 178,000 and the highest estimate was 200,000. Year over year growth in the BLS jobs report has been slowing which
Inflation - Income Growth Misses Estimates Inflation Meets Them Personal income growth in the September PCE report came in at 0.2% on a month over month basis. It missed the consensus for 0.4%. Stripping out taxes, real disposable income growth was 0.1%. As you can see from the chart below, year ove
