Facebook Stock - Correction Allowed Facebook To Rally Facebook reported a similar quarter to its last quarter. It beat EPS estimates, missed revenue estimates, and missed user estimates. The difference between this quarter and the last quarter is the price of the stock. Its stock was at $217.50 on J
Fixed Investment - ECRI Leading Index Goes Negative The ECRI leading index has been bearish on the American economy since late 2017. Now that the stock market has had 2 corrections in 2018, ECRI can claim victory even though GDP growth has been strong in 2018. It’s interesting to see media commentat
Q3 GDP Growth - Solid October Consumer Confidence The University of Michigan consumer confidence reading came in at 98.6. It missed the prior reading and the consensus which were both 99. That’s not a big miss considering the volatility in the stock market lately. The final reading is down 1.8 point
Earnings Revisions - Predicted Stocks Would Fall Earnings Scout chart on earnings estimate revisions versus the S P 500 did a great job of forecasting the volatility in October. I always put various economic and stock market related research into my articles. It gives readers an understanding of the
Business Investment Growth - Beige Book The Fed’s Beige Book gives us great insight into why stocks have been volatile in October. The Fed used the word “tariff(s)” 51 times which is up from 41 in its previous report, making it the high of the year. It’s worth noting the use of the word “trade”
Weak Housing Market - MBA Mortgage Index Increases Week Over Week Home builder stocks suddenly are cratering. Also, banks are falling on worries that high mortgage rates will stifle demand for loans. Housing reports are the most important economic reports to review. There were three reports on Wedne
Stocks Crash - Heightened Volatility On Tuesday Tuesday was extremely volatile as it had the feeling of a bear market rally. The stock market was oversold coming into the day. But the S P 500 still fell 2.34% at its worst point in the day. It rallied in the afternoon to only close down 0.55%. This
Bear Market - Weak Richmond Fed Survey The Richmond Fed index fell from 29 in September to 14 in October. This missed the consensus for 24 and the lowest estimate which was 16. Weakest component was shipments which fell from 33 to 7. Volume of new orders fell from 34 to 20. There aren’t quotes
Financials Fear - Stocks Weak Again On Monday The S P 500 fell 0.43% as it was dragged down by the financials. Nasdaq rallied 0.26% as tech outperformed. Russell 2000 fell 0.16%. Because Russell 2000 firms have a large percentage of their debt in floating rate bonds, rising rates hurt this index. CN
