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January 19, 2018

Stocks settled down yesterday and gave back a modest part of Wednesday’s big gain. Over the past few weeks, and particularly after Wednesday’s giant rally, we have begun to hear the term “melt up” to describe the current market. And it isn’t just stocks. As the Dow crossed 26000 literally days after reaching 25000, oil […]

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January 17, 2018

Stocks roared out of the gate yesterday with the Dow rising close to 300 points.  But by the end of the session, the market had given back all of the gains and then some, with all leading averages closing lower.  Only Merck’s# nice gain on the heels of a favorable clinical trial for its big […]

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January 12, 2017

Stocks resumed their rally yesterday, as bond yields receded.  Two big banks, JPMorgan Chase and Wells Fargo, reported earnings this morning that seemed positive, at least according to the headlines.  Both stocks, however, are lower in pre-market trading, suggesting that perhaps equities are priced to perfection in front of earnings calls.  We can draw much […]

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January 10, 2018

Stocks set another record high yesterday, but finished well off their highs for the session after yields on long bonds moved up yesterday afternoon. That decline in bond prices and rally in yields has carried over this morning sending futures lower. As we note often, the two primary determinants of stock prices are earnings and […]

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January 8, 2018

Stocks rose Friday for the fourth day in a row and closed at another record high. Bonds remained in a tight range. The optimism over equities flows primarily from the improved impact on earnings from the new tax legislation and strong synchronous worldwide economic growth. The obvious question is how far can this rally go? […]

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January 5, 2018

Stocks set new all-time highs yesterday for the third day in a row.  This was the first time since 1964 that stock markets began a year setting new record highs in each of its first three trading sessions.  Despite the rise in stock prices, long term bond yields remained in a tight range.  At the […]

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January 3, 2018

Happy New Year to everyone.  Wall Street celebrated the first trading day of 2018 with a solid start.  While many had feared that the first few days could see some profit taking focused on 2017s winners, the leaders yesterday were largely the same high profile names that have been market leaders throughout this entire business […]

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December 29, 2017

Stocks rose modestly yesterday in very light trading. Perhaps the most notable mover yesterday was the dollar, which fell to within 2% of its 12-month low set in September. One would think with the combination of a strengthening economy, a less active Fed, and broad tax cuts to take effect next week, the dollar would […]

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December 27, 2017

Stocks posted a modest rally, led by energy shares in very light post-Christmas trading. Indeed, that is likely to be the theme for the week, light trading perhaps with a slight upward tilt, and many hedge fund traders have wrapped up their books for the year and settled into a beach chair somewhere warmer than […]

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December 22, 2017

Stocks rose yesterday after two down sessions on a day when Congress finally passed tax reform.  Bond yields showed little change.  Overnight bitcoin prices fell as much as 25%.  Is that the beginning of the end for this craze?  Probably not.  But it clearly demonstrates the volatility and risks associated with an asset class that […]

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