The rally marches on. Friday’s strength led the Dow to its sixth straight weekly gain, something that hasn’t occurred in a few years. The headline news over the weekend was all about war in Gaza and the expulsion of George Santos from the Senate. There was no economic news of note. The market has been …
December 1, 2023 – Stocks finished November with a bang. December is usually a kind time for equity investors, although adding to gains of close to 10% will be challenging. While we will get employment data a week from today and a CPI report the following Tuesday, the die appears to have been cast. Markets now expect inflation is dying and the Fed, which meets again within two weeks, is finished raising rates.
November ended with a bang, at least for the Dow, with the Industrials rising 1.5% yesterday after a strong earnings report from Salesforce. However, the NASDAQ lagged amid some profit taking. Nonetheless, it was up 11% for the month while the S&P 500 was up almost 9%. The bond market achieved a commensurate rally with …
November 29, 2023 – Stocks continue to drift higher as the yield on 10-year Treasuries drifts lower. Seasonally, this is usually one of the strongest times of the year for stocks. While upward momentum has slowed lately, it hasn’t stopped. Perhaps the biggest news late yesterday was the passing of Charlie Munger at age 99. For decades, he was Warren Buffett’s investing partner at Berkshire Hathaway. While Buffett was always the consummate value investor, it was Munger who convinced Buffett that truly great companies don’t come cheaply. One can thank Munger for steering Berkshire toward Apple.
Stocks rose once again yesterday although gains were modest and not broad-based. Bond yields edged lower. 10-year Treasury yields are now below 4.3%. At the end of October, they touched 5.0%. That tells almost all of the story as to why November will prove to be the best month for stocks in 2023. Lower rates, …
November 27, 2023 – A nice Thanksgiving weekend ended on a high note with another Eagles come from behind win. It was a weekend for the birds. Looking ahead, the corporate calendar is slim, beyond a bunch of early December analyst days which will impact individual stocks. The key employment and inflation numbers come out between December 8-12 just in front of the FOMC meeting that concludes December 13. Seasonally, the next several weeks are good for stocks. Hopefully, the coming data will support that bias.
Stocks were mixed on Friday but equity markets still managed their fourth straight up week. Bond yields ended lower for the week with the 10-year Treasury now at 4.47%. Earnings season is just about over after the retailers reported, and the much-anticipated results from Nvidia# now in the books. Over the weekend, the big economic …
November 22, 2023 – In a dull Thanksgiving week, two stories dominate: the turmoil at OpenAI, and the spectacular earnings at Nvidia. The two companies are linked. The explosive demand for generative AI has led to explosive sales growth at Nvidia. Alas, on Wall Street, it’s all about how expectations match up to reality. Expectations have exploded over the past year. Do they have further to go or are they getting ahead of future reality? That is always the dilemma investors face.
Yesterday was a quiet session leading off a week that is only likely to get quieter. Today is a full trading session but investors are more likely on their way to Thanksgiving celebrations this afternoon than sitting at a computer trading stocks. Friday is a half day. It will compete for the slowest trading day …
November 20, 2023 – This is likely to be a quiet holiday-shortened week. The big corporate news over the weekend was the ouster of Sam Altman as CEO of the leading AI company. The big earnings news this week will come from Nvidia tomorrow after the close. Expectations are high given Nvidia’s role as the producer of the most effective chips used to perform AI searches and create solutions.
The momentum from the October rally in both the bond and stock markets slowed last week as bargains started to disappear and no new catalyst surfaced to drive prices materially higher. 10-year Treasury yields settled around 4.5% after briefly touching 5% in late October. Stocks, which were oversold at the end of October and benefited …
November 17, 2023 – While changing interest rates remain the dominant influence on stock prices, weak earnings from Wal-Mart and Cisco were headwinds yesterday. But rates are taking over this morning pushing futures higher once again.
Stocks were little changed yesterday. Positive momentum and lower interest rates were offset by weak earnings reports from Dow Components Cisco# and Wal-Mart. Indeed, the Wal-Mart reaction puts an exclamation point on a fact all investors should know, that stocks react to how results compare to expectations, not to the actual results themselves. For most …
November 15, 2023 – Yesterday’s CPI report punctuated the notion that this rally is for real. Inflation is on its way to defeat, and later next year the economy will see blue skies ahead. Short-term issues like strikes and government shutdown threats are being resolved. The post-Covid impact is waning and the possibility of a soft landing is increasing. The sharp rally may be a bit overdone, but the likelihood that the October lows are the true bottom keeps increasing.
Stocks soared after the release of a favorable CPI report showing further signs that inflation is ebbing at a moderate pace. There is still a way to go before reaching the Fed’s 2% target, but the path is increasingly clear. Bonds also soared although yields on maturities of one year or less remained well above …
November 13, 2023 -One of the secrets to good long-term investing is to find the right growth company early and hang on for the ride. It requires recognizing great management that can build a moat and use scale to create a long-term advantage. If you find one early and worry less about short-term market gyrations, you will likely do very well.
Stocks surged Friday, more than recovering Thursday’s losses. Momentum increased throughout the session. Fear of missing out on the rally probably spurred some of the buying. As I noted last week, a sustained reversal (2+ days) created a classic V-shaped bottom. While bottoms often get retested, they don’t always. The lows set the first Friday …
November 10, 2023 – Stocks remain slaves to the bond market. A poorly received Treasury auction and sober comments from Fed Chair Powell helped to end the longest equity winning streak of the year. But unless rates surge back over 5% from here, the odds favor that the worst of 2023 is over.
The longest equity winning streak of 2023 is over. Thank a combination of sober comments from Fed Chair Jerome Powell and a poorly received Treasury auction. Treasury bond yields rose by over 10 basis points and stocks went into retreat. Equities, at least for the moment, continue to be slaves to movements in the bond …
November 8, 2023 – The longest non-stop flight you can currently take is from New York to Singapore, traveling about 9,500 miles and lasting nearly 19 hours. The shortest flight in the world is the Loganair Westray to Papa Westray in the northern Scottish Islands, traversing about 1.7 miles in 90 seconds (it is also non-stop). Distance and time are important considerations when traveling, but also when navigating the current market environment.
In the short run, markets can be volatile, expectations can change quickly and animal spirits can lead to euphoria or pessimism. Short term interest rate cycles, such as the one that started about 18 months ago, are still working their way through the economy. 10-year yields have fallen this past week from close to 5% …
November 6, 2023 – Collapsing bond yields, in the wake of less threatening rhetoric from the Fed, less expected long-term debt issuance from the Treasury, and moderating employment growth, helped to lift stocks last week. Some follow-through can be expected but nowhere near as strong as what we witnessed last week. True market bottoms are often V-shaped. The lows of two weeks ago could be retested depending on future news. But it is more than likely that the bottom for the recent correction is in.
Friday made it five-for-five as an employment report weaker than expectations pushed bond yields lower and stock prices higher. August, September and October were three miserable months for investors. Although the economy remained strong and inflation continued to come down, longer term bond yields soared as both investors and central bankers fretted about the enduring …
November 3, 2023 – The S&P 500 has rallied nearly 5% this week while the 10-year US Treasury yield has fallen almost 0.5% to 4.5%. This morning’s soft payroll report adds even more support to dovish FOMC members and reduces the likelihood of any near-term rate increases.
Apple# reported solid earnings with revenues that were in-line with expectations, but its guidance suggests a relatively weak outlook for the December quarter. Concerns about demand for Apple products in China remains an issue, but its Services business helped the company report record margins. Apple’s earnings report is consistent with most other corporate reports this …
November 1, 2023 – Today’s focus will be on the Fed as it concludes its 2-day FOMC meeting. Don’t expect any changes in rates or policy. Before its next meeting in December it will have two more employment reports, two more CPI reports, and have an early read on Christmas activity. If there is to be any change in thought, it will likely be expressed then, not today.
A sharp rally Monday followed by a more moderate one yesterday relieved a lot of selling pressure on the stock market. Normally, I look at two solid days in a row as a trend reversal, but today is FOMC day when Fedspeak dominates. Long-term bond yields in recent days have stayed within a narrow yield …
October 30, 2023 – Stocks continued to slide last week. But the pace of rising interest rates may be slowing as real returns rise, attracting more buying interest. Today, against a backdrop of inflation below 4%, one can build a bond ladder using just Treasuries that yields in excess of 5% regardless of the length of the ladder. There are economic risks out there that could pressure earnings next year, but any economic slump would likely bring an offsetting decline in interest rates. The emotional fears evident the past two weeks should start to wane soon.
Stocks continued to slide Friday although NASDAQ names got a bit of a lift from a strong earnings report from Amazon. Bonds traded within a narrow range. Despite a growing economy, full employment and falling inflation, stocks have been under a lot of pressure since the start of August. The primary culprit has been the …
October 27, 2023 – : Markets are in a sour mood. In the short run, emotions always trump the facts. Q3 GDP growth near 5% won’t be repeated. But interest rates are not likely to spike from here as they have been doing since July now that the terminal rate is firmly in positive territory. Valuations have also reverted toward normal as the excess enthusiasm that peaked in 2021 is wrung out. With interest rates and P/E’s closer to historic norms, future equity returns of high single digits over time should soon start to attract capital once again.
Stocks continued to tumble despite news that third quarter GDP grew by almost 5%. Interest rate increases, which have been the primary culprit pushing equity prices lower, reversed. Investors were simply in a sour mood. Microsoft#, which issued a superb earnings report Tuesday evening and popped Wednesday in reaction, gave back all its gains yesterday …
October 25, 2023 – Good earnings lifted markets yesterday aided by a retreat in bond yields. Overnight there were mixed reports from the likes of Microsoft# (good) and Alphabet# (mixed). The parade continues this morning. By the end of next week, the focus will return to the overall economy. Like recent earnings reports, the outlook is mixed with pockets of strength and weakness.
Stocks rebounded on a busy earnings day. Old line names like Coca Cola#, 3M, and General Electric helped to lead a rebound. But as important as earnings reports are at the moment, stocks still take their primary cue from the bond market. 10-year Treasury yields fell back from their recent 5% peak helping to lift …
October 23, 2023 – The story is simple. Interest rates keep rising and stock prices fall. Good earnings don’t matter if long rates rise 5-10 basis points per day. With housing now slumping, corporate loan growth slowing, and banks net sellers of bonds, supply is overwhelming demand, pushing bond prices down and rates up. At some point, valuation will attract buyers, but when is an open question.
Stocks continued to slump Friday even as bond yields recovered a bit. But the yield on the 10-year Treasury is back above 5% early this morning and equity futures are back in the red. Monday is often a big day for merger news. Today’s biggie is Chevron’s# planned $53 billion acquisition of Hess, somewhat replicating …
October 20, 2023 – As go bond prices so go equities. The sharp rise in bond yields is crushing the stock market. The increased cost to borrow is particularly painful for cyclical industrial names. When will the spike end? History suggests any spike gets overdone, so we don’t know. But what we do know is that if yields rise 10-basis points per day, equity investors will feel the pain. What can stop the pain? When yields are tempting enough, buyers will appear. Hopefully, that will be soon.
Bond prices fell, pushing yields higher. The pressure was too much for equities which declined along with the value of bonds. The 10-year Treasury yield closed within a whisker of 5%, its highest level since prior to the Great Recession. Earnings season rolled on with results roughly in line with expectations. While we saw a …
October 18, 2023 – Markets remain mixed as earnings season rolls into high gear. So far, result have been favorable. But a strong economy brings with it elevated interest rates, leading to a choppy market, one likely to continue.
Stocks were mixed yesterday as favorable earnings news clashed with higher interest rates. A strong retail sales report for September boosted yields as the U.S. economy continues to defy expectations that a slowdown is imminent. With net monthly job gains averaging near 175,000 and unemployment still well below 4.0%, Americans have little reason to defer …
October 16, 2023 – Earnings season is off to a good start. Upward pressure on oil prices and sticky high interest rates are an offset. For the next two weeks earnings should dominate, assuming the war in the Middle East doesn’t erupt into something much bigger than expected.
Stocks closed mixed Friday. Good early earnings reports from key banks and others were offset by a mild rise in interest rates. Earnings season rolls on this week and will be one of the dominant influences on the market. As for economic data, the key items this week will be a variety of housing numbers …
October 13, 2023 – Markets took a rest yesterday after the CPI report showed inflation remains stubborn thanks to high shelter costs which should moderate significantly in the months ahead. Today starts earnings season with big banks starting to report. The heart of earnings season will be next week and the following week. I expect a favorable reaction.
Stocks fell yesterday in reaction to a CPI report showing inflation continues to ebb at a slower pace than most want to see. Bond yields also rose in response. Thus, equities remain slaves to changing bond yields. That may moderate somewhat as earnings season begins in earnest today with several big banks reporting results. While …
October 11, 2023 – Stocks have been slaves to interest rates. They have dropped sharply over the past week, hence a good stock market rally. While volatility is likely to continue, one can make a good case that last week’s 4.9% yield on 10-year Treasuries will prove to be a near-term peak. Tomorrow’s CPI report may seal that conclusion. The economy is slowing and inflation is winding down. As that becomes more apparent, conversation will eventually move to when the Fed will start to cut short-term rates. Markets may be anticipating that now.
Stocks rose for the third straight session as interest rates fell. I have been noting that, until earnings season, stock prices appear to be slaves to the bond market. After hitting a peak of 4.89% late last week, 10-year Treasury yields this morning are back down to 4.55%. That is a huge move over just …
October 9, 2023 – While futures point to a lower opening this morning as a result of the Middle East war, Friday’s employment report, which pointed toward a soft landing, is more important economically. This week’s CPI report should be important. Odds suggest it will reveal falling inflation. But earnings reports, which start at the end of this week, will likely set market trends to year end. As always, management outlooks will be more important than Q3 earnings themselves.
Stocks rallied Friday in a rather volatile seesaw session after the release of the September employment report. On the surface the surprisingly large jump in the number of workers reported in the payroll survey spooked investors, suggesting that surprising economic strength would force the Fed to raise interest rates once again. But beneath the surface, …
October 6, 2023 – Recent market weakness is starting to generate hysterical comments within the financial community. Yes, our government’s spending habits have to be fixed but we knew that in July when stocks were surging. The higher rates today are linked to the Fed’s tactic to fight inflation. Will that tip the scales toward recession? It’s still too close to call. Most of the reactive damage has been done. But equity valuations, even with the August-September correction, are elevated. A rally may be coming but don’t expect a booming bull market ahead.
After a miserable September, stocks have limped sideways for the last two sessions waiting for today’s employment report. The focus will not only be on the top line number, which has averaged about 150,000 net new jobs over the past three months, but also on the pace of wage growth and the labor participation rates. …
October 4, 2023 – Stock prices are slaves to the movements in the bond market, at least for now with yields on 10-year Treasuries rising more than 10 basis points in a single session, and 50 basis points since the last FOMC meeting two weeks ago. When calm will be restored is anyone’s guess, but there is little rational reason for yields to rise sharply from here without some extraordinarily bad news on the inflation front.
Stocks fell sharply yesterday taking their cues from the bond market. Since the last FOMC meeting concluded September 20th the yield on the 10-year Treasury has risen almost exactly 50 basis points (in less than two weeks). The Fed dramatically altered its stance at that meeting to adjust policy to keeping rates higher for a …
October 2, 2023 – September was a bad month for both equities and bonds. In addition, the spike in oil prices didn’t help. But other than momentum, it’s hard to justify either oil prices or bond yields continuing to rise sharply. Equity P/Es are still a bit high, but the pace of decline in stock and bond prices should abate soon.
September was the worst month of the year for equities. The NASDAQ was down 4%, the S&P 500 down close to 3.5% while the Dow fell 2.4%. There is little reason to search for the cause beyond one number. The yield on the 10-year Treasury rose from 3.85% to over 4.5%. This morning it is …
September 29, 2023 – Markets staged a modest rally yesterday following a downward trend for interest rates during the session. But it’s hardly time to signal all clear. The economy continues to decelerate and investors are still adjusting to higher rates. But there is little rationale for 10-year yields to move much higher. That suggests the current correction may run its course before Q3 earnings season ends.
Stocks staged a modest rally yesterday after bond yields retreated following a spike in yields overnight. The rally also relieved a short-term oversold condition. With that said, there was little in yesterday’s rally that would encourage investors that the August-September correction is over. That would require strong follow through today and Monday. There was little …
September 27, 2023 – Yesterday was a bad day. There was no particular bad news. Yes, the economy is slowing and long-term rates push higher. But the real problem is simple. Large cap equity valuations are too high and need correcting. 18x forward earnings is out of line with an economy that is weakening, alongside bond returns averaging close to 5%. They are not wildly overvalued and don’t require another bear market to correct. But money will always flow from expensive to cheaper assets. That’s what’s happening now.
Stocks fell sharply amid a series of negative events. Bad momentum, an extended auto strike, the likelihood of a partial government shutdown, higher interest rates, you name it. The news was all bad and the stock market reflected it. Meanwhile 10-year Treasuries traded over 4.5% and threatened to move ever higher. With all this said, …
September 25, 2023 – While lower prices in the wake of the Fed’s hawkish post-meeting news on Friday might have started to create some bargains, stocks remain expensive if one assumes rates will stay elevated for an extended period of time.
Equity markets didn’t seem to like what the Fed had to say last Wednesday judging by the reaction of the stock market in the ensuing sessions. 10-year Treasury yields rose sharply. Since they are a measure of long-term inflation expectations, the Fed’s course toward a soft landing with moderating inflation either didn’t sit well or …
September 22, 2023 – Stocks fell sharply, continuing a negative reaction to the outcome of Wednesday’s FOMC meeting. While rates remained unchanged, the committee expressed a bias toward increasing rates again at the next meeting that ends November 1. In addition, the dot-plot of projections from Committee participants suggested only one (net) rate cut between now and the end of 2024. While short-term rates barely budged, yields on 10-year Treasuries rose by about 15 basis points, suggesting tougher economic conditions ahead, higher rates for longer and, by extension, lower P/E ratios. Lower P/Es mean lower stock prices.
Looking ahead, there are two possible logical outcomes, a soft landing or a recession. Clearly, the Fed’s message was in support of a soft-landing. The unemployment rate, now at 3.8% is expected to peak around 4.1% suggesting net jobs continue to grow, on average, every month. However, the pace of growth will be even slower …
September 20, 2023 – Today concludes the 2-day FOMC meeting. No change in rates is expected but investors will parse every detail of the post-meeting releases as well as comments from Fed Chair Jerome Powell. Recent data suggests both inflation and the economy are slowing. The ideal soft landing is still within reach, but it is also quite possible that the economy might slip into recession over the next few months.
Leading economic indicators have been declining for over a year, and the peak-to-trough decline is the steepest for any non-recession period this century. Money supply, year-over-year, is falling at a rate approaching 4% and it could fall at least 3% more over the next 12 months unless the Fed decides to stop reducing its balance …
September 18, 2023 – Markets are directionless, torn between better economic activity and an increase in storm clouds from labor unrest to China. What is crucial is the future trend for interest rates. Investors will parse this week’s FOMC meeting for clues, but probably won’t get a much clearer picture for their efforts.
Stocks have been trading sideways in a directionless pattern for the past month. On the plus side, earnings have exceeded forecasts and the economy continues to grow at a rate faster than economists had predicted. But that has been countered by a series of concerns: 1. Interest rates, particularly at the long end of the …
September 15, 2023 – Auto workers are out on strike. So far, markets don’t care. They probably won’t care overall, unless the strike becomes extended. Elsewhere the public offering of ARM Holdings signals a healthier IPO market. Instacart is likely next. Traders are waking up from the late summer doldrums, but valuations, high bond yields and rising oil prices probably suggest more sideways churning ahead.
Stocks staged a solid rally yesterday as economic data showed a resilient consumer in August. A further boost came from the successful return to public markets by ARM Holdings via a highly anticipated initial public offering of stock. ARM designs chips used in everything from smartphones to PCs to data centers. Its chip designs are …
September 13, 2023 – Today’s focus will be on the August CPI report. The headline number will be disturbing thanks to higher oil prices, but core inflation is likely to stay muted. Bond yields have been creeping higher and are back at the top end of recent trading ranges. Any breakout to higher yields would be disturbing to equity markets.
Stocks fell yesterday, led by the tech sector reacting to a disappointing outlook from Oracle# and a ho-hum reaction to the new iPhone offerings from Apple#. The weakness also reflected concerns that today’s CPI report might spook investors as the cost of living in August likely rose, thanks to higher energy costs. Today I am …
September 11, 2023 – Spectrum and Disney are locked in a battle over how TV content is delivered to the home. Both want a bigger economic piece of the pie. The battle reminds us of the strike by actors and screenwriters. All are fighting for a bigger piece of a smaller pie. These battles are part of a process, one where the consumer will be the winner in the end. But before the wars end, there will be lots of carnage as economic reality sorts out those parts of the puzzle that cannot survive.
Before beginning this Comment, please take a moment today to remember the events of 22 years ago and reflect both on our collective losses and the importance they represent to our future. Stocks rebounded a bit on Friday but still gave up ground for the week. There was a lot of worrisome news of economic …
September 8, 2023 – The reported impending ban on the use of iPhones in Chinese government offices sent Apple’s shares reeling and infected the entire tech sector, sending stocks lower this week. While China’s government hasn’t officially commented, this news is yet another sign of the deterioration of economic cooperation between the U.S. and China. Economically, that can’t be a good sign.
Stocks moved lower again yesterday. For a change, it wasn’t the bond market leading the stock market. Yields stayed contained within the upper end of their recent range. Rather, at a time where economic and corporate news is limited, investors have adopted a sour mood where both good news and bad news evoke negative reactions. …
September 6, 2023 – Stock prices remain slaves to interest rates. A spike in rates the past two days has put downward pressure on stock prices once again. Higher oil prices add further pressure. With little economic or corporate news coming that should change sentiment, the key data in the weeks ahead will focus on the pace of decline in inflation readings.
Stocks fell yesterday as bond yields rose and oil prices spiked. As noted often in past Comments, stock movements in the short run, at least until more economic news leads to a change in perception, will be captive to changes in long-term interest rates. Predicting short-term moves in rates is usually a futile exercise. One …
August 2023 Economic Update – Towering Deficits and a Ratings Downgrade; Do They Matter?
In this video, Tower Bridge Advisors’ Chief Investment Officer Jim Meyer discusses the economic effect of the rising Federal deficit and the unintended consequences that follow. Please watch as Jim provides some perspective on what this means to investors.
August 2023 Economic Update – Towering Deficits and a Ratings Downgrade; Do They Matter?Read More
June 12, 2023- : The S&P 500 traded into Bull market territory last week on the back of a broad market rally. The broadening of the rally is key to continued optimism in the market. However, the possibility of a recession still looms, despite the rally.
Are we in a new Bull market? Last week the S&P 500 rallied to its highest level this year which put the index 20% above its October lows. On a year-to-date basis the index is up 12% led by mega-cap technology stocks. However, as we mentioned many times before, not all stocks and sectors have …
May 12, 2023 – While mega caps keep gaining steam, the average stock is now down for the year. Eight of the last nine trading sessions have been negative for the Dow Jones Industrial Average. The Fed may be done raising rates, but an all-clear signal is far off in the distance. Transitions are hard!
April’s consumer inflation report was well received, with a continuation of a gradual slowing for inflation. Ditto for the Producer Price Index yesterday morning. Our infamous “Fed whisperer”, Nick Timiraos, helped fuel a minor rally in growth stocks when his latest Wall Street Journal missive noted “Federal Reserve officials were already leaning toward taking a …
April 26, 2023 – Markets are being buffeted by crosscurrents. The banking crisis has come back into focus amid turmoil at First Republic. Earnings reports move individual stocks both ways. Bond market strength portends a weakening economy and slower inflation. Yet pockets of economic strength endure, mostly in the travel and leisure sectors. The net for equity investors is a standoff, one likely to endure for some time amid persistent rotation of leadership.
It was a wild day yesterday with several strong moves relative to earnings, a wild ride for First Republic Bank, the regional bank most people see as the stress point within the banking system, and a sharp rally in bonds. The major averages were all lower. After the close, solid earnings from Microsoft# reduced some …
April 2023 Economic Update – The Banks, The Economy and Valuation
In this video, Tower Bridge Advisors’ Chief Investment Officer Jim Meyer discusses three key topics impacting investors – Banks, the Economy and Valuation. Please watch as Jim provides some perspective on these topics and gives investors some sense of how to position portfolios for what lies ahead.
April 2023 Economic Update – The Banks, The Economy and ValuationRead More
October 26, 2022- Stocks have now risen sharply for three straight sessions as both the value of the dollar and the yield on 10-year Treasuries retreated. But disappointing earnings last night from a trio of tech names may spoil the party this morning. Or at least give it some reason to pause. The poor numbers from tech land remind us to look forward, not back. The great opportunities that technology created over the last quarter century are now maturing. The good news is that new opportunities will appear. They always do in a capitalistic entrepreneurial society.
Stocks rose sharply for the third straight session. It’s earnings season. Through yesterday, the results were basically in line with lowered expectations, but perhaps the biggest driver of higher stock prices was the reversals over the past several days in the value of the dollar and the yield on 10-year Treasuries. Within a bear market …
October 12, 2022- As we enter earnings season, attention will shift from interest rate fears to corporate performance. Pepsi kicked it off this morning with good results, hopefully an encouraging sign. As always, the story for the season will revolve around expectations versus reality. In July, reality beat expectations sparking the best rally of the year. The key will be the relative performance of the large tech names, notable laggards coming into earning season.
Stocks ended mixed yesterday in a very volatile session where the Dow Industrial Average moved back and forth by more than 1000 points. News was rather sparse. A brief afternoon plunge occurred after the Bank of England signaled it would halt its planned intervention to support the pound Friday as originally planned. Stock, bond, and …