Markit Manufacturing PMI Falls Markit manufacturing report from February showed business is starting to wane as the coronavirus catalyzes a slowdown in global growth. PMI fell from 51.9 to 50.7. Good news is this is only a tick lower than the flash reading. It's surprising that activity didn’t decel
Another Huge Move In Markets As Stocks Surge Wednesday had yet another awe-inspiring move in stocks and bonds as the S P 500 rose 4.22% and there were many volatility clusters. However, if the market avoids another big decline, we will see a return to normalcy where stocks grind higher. The chart be
Bullard Talks Down March Fed Decision Fed did an emergency cut on Tuesday. Questions are now being asked about the March 18th meeting as we only have a couple more days before the Fed’s quiet period starts (Friday). When asked about future Fed action Bullard stated, “We certainly can keep our option
Another Wild Day For Stocks The stock market had a very wild day as it was down in the morning, briefly rallied after the Fed’s emergency cut, and then crashed sharply. In markets volatility clusters which means when the previous day had high volatility, the next day has a greater than average likel
Yield Curve Just Predicts Fed Action Many of us thought the Fed wouldn’t cut rates until its March 18th meeting. But instead it did an emergency 50 basis point cut on Tuesday. This decision didn’t calm markets. Before we get to what Powell stated and the impact it had on markets, let’s look at what
Buy Everything? Monday’s market was similar to the rally on Friday afternoon. It was a very strong across the board rally. 79% of stocks rose which didn’t meet the threshold set on December 26th, 2018. That's the one in which 96% of stocks rose, but we wouldn’t call Monday’s rally disappointing. Dow
Consumers Are Still Doing Fine Little evidence exists that the coronavirus is significantly hurting the consumer. There have likely been changes to consumer behavior. Reports are coming in of consumers stocking up on necessities. That could be good for firms like Costco. As a side note, going to a c
Another Wild Ride Friday was the grand finale of the week and it didn’t disappoint. It was arguably the wildest ride of this correction. There were moments where it looked like stocks bottomed and moments where it looked like we were headed for new lows. It was one of the craziest days we've seen in
Stocks Aren’t That Cheap Currently, the stock market’s sharp decline is drawing everyone in. It’s addicting to watch such a vicious decline. Since this was the fastest 10% decline from a peak, we are watching market history. Because stocks have fallen so fast, the natural first inclination is to buy
Correction Becomes True Panic There are quite a few amazing stats on this recent selloff. However, recognize that by the time the impact of the coronavirus is shown in economic data, stocks will likely be done selling off. Traders are always on the leading edge of the facts even though it seems like
