Market Update

INVESTOR SENTIMENT IMPROVING ON TRADE TALKS

INVESTOR SENTIMENT IMPROVING ON TRADE TALKS

INVESTOR SENTIMENT IMPROVING ON TRADE TALKS

The major stock market averages surged in early trading following a report that the Chinese are offering trade concessions (see below). The Dow is currently up 280 pts and the SPX is up 1.2%. The materials & industrials sectors shot up 1.8%. Those groups have perhaps suffered the most from the trade war and may have the most to gain from a trade deal. As sentiment regarding a potential trade deal improves, the VIX Index continues to soften (now down to 17.6). And oil prices continue to recover (up around $53.60/barrel). Bonds are trading as you would expect on a very risk-on day. Treasuries are down in price, up in yield. The 10-year Treasury yield is back up around 2.78%, and wants to test resistance around 2.81%. Corporates, on the other hand, are at long last catching a bid. And for today, the worse the credit quality, the higher the price gain.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

November 16, 2018

November 16, 2018

The major stock market averages began the weak dreadfully, with the SPX dropping almost 2% then proceeding down another 2% over the next couple of days. The S&P 500 bounced back on Thursday, up 1.06% (29 pts) as well as the Dow up .83% (209 pts), a good day. They are both flat this Friday Morning.  Ten of the eleven sectors are in the red this week - the sole sector in the green for the week, so far this morning, are Utilities.  The VIX Index is just slightly below its historical average at 20.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.

September 14, 2018

September 14, 2018

Stocks opened higher again this morning, but quickly gave way after a report that President Trump wants additional trade tariffs on Chinese imported goods. Here we go again; all the news-algorithm traders just hit the sell button. The Dow and SPX are currently down 38 pts and .1%, respectively. Up until a few moments ago, transports, banks and semiconductors were the best performing groups in early trading. Foreign stock markets—even emerging markets—are trading higher on US dollar weakness as well as action by the Turkish government to stem their budding financial crisis. European markets are poised to close up by about .4% and Asia was broadly positive overnight. WTI crude oil is unchanged at about $68.60/barrel. Bonds are selling off as interest rates resume their slow slog upward. The 5-year Treasury yield ticked up to 2.90%, the highest since May. The 10-year Treasury yield just moved back to 3.0%. It seems that whenever we get some positive economic news overseas, US Treasury yields rise. That’s because foreign investors often look to Treasuries as a safe haven investment when times are uncertain in their own countries.


*The foregoing content reflects the author's personal opinions which may not coincide with the opinions of the firm, and are subject to change at any time without notice. Content provided herein is for informational purposes only and should not be used or construed as investment advice or a recommendation regarding the purchase or sale of any security. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. Past performance is not a guarantee of future results. Indices are not available for direct investment. Any investor who attempts to mimic the performance of an index would incur fees and expenses which would reduce returns. All investing involves risk. Asset allocation and diversification does not ensure a profit or protect against a loss. Finally, please understand that–as with other social media–if you leave a comment, it will be made public.