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July 26, 2017

Stocks rose on the heels of excellent earnings reports from McDonald’s# and Caterpillar. This morning Dow components Coca Cola and Boeing also reported good earnings and the parade marches on. One of the confusing aspects of this economic recovery has been the absence of inflation, particularly as the labor force approaches full employment. Certainly, one […]

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July 24, 2017

Stocks dipped slightly on Friday in quiet mid-summer trading. General Electric#, a Dow component, reported OK earnings but gave a disappointing outlook as the company segues between CEOs. Incoming CEO John Flannery promised to offer a new strategic approach by November. This was viewed with concern as GE’s fortunes have been lagging those of other […]

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July 21, 2017

Stocks closed mixed yesterday in a session dominated by individual company earnings reports. Industrials were mostly lower while health care issues advanced. I want to start today and focus on two companies that reported results this week, IBM and Netflix. On Monday, after the close, Netflix reported a greater number of new subscribers than Wall […]

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July 19, 2017

Stocks advanced yesterday after a series of strong earnings reports.  While only a small fraction of companies have reported Q2 earnings so far, almost 75% have beaten expectations on both the top and bottom lines.  Thus, despite, all the troubles in Washington, stocks are moving higher.  On the other hand, without any economic tailwinds emanating […]

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July 17, 2017

Stocks closed Friday at record highs despite some disappointment with earnings of three of the largest U.S. banks. Last week extended a record string of individual shareholder bearishness: according to the American Association of Individual Investors, only 28.2% were bullish. This marked the 20th straight week that bullish sentiment was below its long term average. […]

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July 14, 2017

Stocks edged higher, continuing Wednesday’s rally after Fed Chair Janet Yellin testified before Congress that she expected the Fed to take a gradual approach relative to future interest rate increases. Over the last several sessions the leading tech stocks have staged solid rebounds recovering much of their recent losses. But with one or two exceptions, […]

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July 12, 2017

Stocks marked time yesterday as politics once again trumped (no pun intended?) economic news. First there was the story of dirty politics surrounding Donald Trump Jr. Suffice to say, dirty politics isn’t a unique story, it probably won’t change the way we go about our lives, and time will tell how this story plays out. […]

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July 10, 2017

Stocks rose on Friday after a stronger than expected employment report. This week will be a relatively light one for data. Both PPI and CPI numbers will come out later this week as well as a preliminary look at June retail sales. June figures will likely remain weaker than normal given what we already know […]

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July 7, 2017

Stocks fell about 1% yesterday against a backdrop of a somewhat weak prediction for today’s employment report and foreign policy concerns related to North Korea’s recent ICBM launch, and the upcoming meeting today between President Trump and Vladimir Putin. You probably are tired of my harping persistently about my “two-day” rule.  But it works more […]

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July 5, 2017

Stocks generally rose on Monday in a holiday-shortened session with light volume. Interest rates, especially at the long end of the curve, continued to creep higher. Despite the pre-holiday mood with lots of traders away, there was a flurry of economic data which confirmed little deviation in the economy’s path. Manufacturing continued to be solid, […]

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