Leading Index Spikes Showing 2020 Economic Growth Acceleration
Consumers Very Confident In Stocks January University of Michigan consumer confidence index wasn’t surprising. It was strong just like the Conference Board and Bloomberg consumer confidence indexes. The overall index rose 0.5 to 99.8 (up 0.7 from the 1st half of the month). Current conditions index fell 1.1 to 114.4 and the expectations index rose 1.6…
Rally Back or More Selling?
In today’s video, Don questions if we are looking for a rally back or more sell side activity in the days and weeks to come? Don also suggests that we will see more volatility this week as there seem to be things, in the big picture, that just don’t seem right. Don’t be surprised if…
Stocks End January On A Low Note
Causes Of The Decline (Coronavirus/Sanders) January 2020 looks a lot like January 2018. There was volatility at the end of each month as the market had previously reached a euphoric state. This current decline is occurring during earnings season, just like 2 years ago and just like 2018 earnings aren’t the reason stocks are falling. …
Ignore The Crash In The Chicago PMI
Homeownership Rate Strengthens Homeownership rate has been on a tear in the past couple quarters as the housing market seems to be nearly fully recovered from the bubble in the 2000s. Even though the recession ended in 2009, as you can see in the chart below, the rate continued to decline until bottoming in Q2…
Extreme Risk Prevails but is More to Come?
Stocks rocked as we saw the 3rd consecutive week of a breach of the expected move in the S&P after 23 straight weeks of no breach. Next week's expected move is now the widest it has been in a long time. Will the volatility prevail or will the rally return? Lots to discuss in this…
Modest Q4 GDP Growth & Improved Homeownership Rate
2.1% Q4 GDP Growth Year over year GDP growth was 2.3% and quarter over growth was 2.1% which exactly met estimates and was at the high end of my expected range (1.7% to 2.1%). St. Louis Fed Nowcast was exactly correct even though its final reading doesn’t come out until Friday. This seems to have…
Amazon Beats Earnings Estimates & Coronavirus Threat Grows
Coronavirus Deemed Global Health Emergency WHO stated the coronavirus is a global health emergency. Sure enough, stocks rallied on Thursday just like the historical charts suggested would happen. U.S. stock market investors see this issue as a short-term one-time event. The coronavirus likely won’t have a major impact on America. JETS airline ETF rose 0.72%…
Surging Shares, Earnings, and Overnight Gaps - What to do now?
One day after Tesla (TSLA) rocked traders with a huge overnight gap-up on earnings, Amazon (AMZN) does the same with an even larger price gap to kick-off Friday's exciting trading session. Where does this leave us for strategies and what stocks are joining the market (and AMZN) breaking to new highs from our scan? Join…
Microsoft & Tesla Rise While Facebook Falls (On Earnings)
Microsoft’s Blowout Earnings It was yet another great earnings report for Microsoft which continues to fire on all cylinders. This was Microsoft’s 2Q 2020. The firm reported EPS of $1.51 which destroyed estimates for $1.32. Revenues were $36.91 billion which beat estimates for $35.68 billion. Revenues were up 14% yearly. Its stock is up 63%…
Pending Home Sales Index Falls The Most Since 2010
Home Price Growth Rises Again Even though yearly FHFA home price growth fell very slightly, it has been clear for the past few months that home price growth is bottoming. Monthly price growth in the 20 city Case Shiller index was 0.5% in November which beat estimates and the prior reading of 0.4%. Monthly non-seasonally…