Tech Boom Turns To Bust As The Nasdaq Has Its Worst Week Of 2017
Friday was a great day for the market as most sectors were up. Energy and the financials did well as the S&P energy sector was 2.48% and the S&P financials sector was up 1.93%. However, in the afternoon the technology sector had a bit of a flash crash led by NVIDIA which was down 6.46%…
NASDAQ Feels the Fear
The handful stocks leading the market higher got rocked on Friday. The asset rotation game continued as money got pulled from the major tech stocks into the financial and energy market. In this crucial weekend update we answer the real question - how much longer can the market play the rotation game and when will…
Atlanta Fed Downgrades Q2 GDP Growth Estimate To 3.0%
Regional Banks Soar It was interesting to see the financials rally on Friday given the problems with getting Dodd-Frank repealed. After falling 12.37% from its high on March 1st to its low on June 6th, the KRE regional bank index is up 7.13%. As I said, the Dodd-Frank repeal isn’t going as smoothly as the…
Consumer Comfort Remains High
The weekly Bloomberg Consumer Comfort index was released Thursday morning. It fell from 51.2 to 49.9. This was the first decline in 4 weeks. Confidence among Republicans decreased, while it increased among Democrats. This shows the partisan differences are disintegrating. This makes sense because now that the election is over, the questions can be answered…
Financials Lead, and Metals at an Inflection Point
Overall markets bounce around in a very tight range today as traders spent the day watching the political soap opera unfold. The winner of the day was financials as the Fed likelihood of a 25 basis point Federal Funds Rate increase next week hit 98%. In tonight's video we look at what's next for financials…
ECB Lowers 2018 Inflation Forecast To 1.3%
The stock market was up modestly on Thursday after the big news surrounding the Comey testimony and the ECB statement were released. It’s now focusing on the U.K. elections which will affect Friday’s trading. The market has been so quiet, small moves that these events cause look like big moves because volatility has vanished this…
The ‘Euphoriameter’ Is Near The 2014 Peak
Are We At The Euphoria Stage? Despite the potential for volatility on Thursday, the stock market hovered near its all-time high. The VIX once again stayed at the 10 handle. The chart below takes the excitement seen in the low VIX, high forward PE multiples, and bullish sentiment and combines them to create the Euphoriameter.…
Markets Racing Forward without a Driver
Stocks slightly higher on the day in another slow trading day. The market seems to be waiting for a catalyst that perhaps we get tomorrow. In tonight's market update we look at the upcoming Comey testimony, ECB announcement, and the election in Britain. Do any of these events have a chance to move the market…
The Day Before Comey’s Testimony & The ECB Meeting
Wednesday’s market action was tepid because it is the day before two important events. The former FBI director, James Comey, will be testifying in front of Congress and the ECB will be meeting tomorrow. There’s not much I can say about Comey’s testimony which will add to the conversation about the potential political consequences for…
ISM & JOLTS Are Solid Despite Citi Surprise Weakness
In my last article, I mentioned the April JOLTS labor report which was released Tuesday. Let’s look at it more closely because it’s known as Janet Yellen’s favorite labor report. Personally, my favorite labor report is the Atlanta Fed’s 3-month smoothed average of wage growth, but everything is worth reviewing. The JOLTS report was good…