Canada

October 2, 2018

October 2, 2018

Stocks opened higher again this morning (Dow +131 pts; SPX +.16%). There’s not much news for traders to chew on today. Utilities are bouncing back 1.3% after having corrected in September. At the same time, materials, tech and energy are trading higher. Biotechs, banks and transports are in the red. Small-caps are taking a hit (-2% in 2 days) after a new trade agreement was reached with Canada. Remember, small-caps were seen as a safe haven investment when trade tensions were at their worst. European stock markets were lower in today’s session on concerns about Italy’s budget deficits. The fact that the dollar is stronger and Treasury yields are lower has to do with Italy as well. Whenever European finances or economic growth look a bit uncertain, global investors tend to buy US Treasury bonds. So the 10-year Treasury yield dipped back down to 3.05%. And that, of course, is why utility stocks are rising today.


*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.

October 1, 2018

October 1, 2018

Stocks surged at the open this morning (Dow +250 pts; SPX +.65%). Materials, industrial and energy sectors are all up over 1% in early trading. Only the most interest rate sensitive sectors—utilities and real estate—are in the red. The VIX Index fell below 12 and most global equities rallied. Even Chinese markets participated last night (Shanghai Composite +1%). The dollar is a little stronger today and commodities are mixed. Gold, copper and iron ore are falling in price, whereas WTI crude oil is up around $73.90/barrel. Despite trade war fears, global oil demand is healthy and the perceived constraint—what with trade sanctions in Iran & assorted problems in Venezuela—is supply. Bonds are mixed in early trading. Longer-term Treasuries are selling off a bit. The 10-year Treasury yield backed up to 3.06%. On the other hand, junk bonds are surging after a new trade deal with Canada was announced (see below).


*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.

August 31, 2018

August 31, 2018

The major stock market indexes are mixed in early trading (Dow -55 pts; SPX -.13%; Nasdaq +.1%). Retailers, semiconductors and REITs are moving up, but most other groups are in the red. Banks and oil companies are some of the worst-performing groups, and year-to-date they’ve been flattish. Trade volume is pretty light in front of the three-day weekend. European stock markets are down about 1% and Asian markets were down overnight. Over the last 24 hours we’ve seen headlines saying President Trump is leaning toward imposing trade tariffs on another $200bil in Chinese imports, and he’s also doing his part to cast doubt on the trade talks between US and Canadian officials this week. Today is the deadline for negotiating a new NAFTA deal with Canada. That country’s foreign affairs minister said the two sides are “not there yet.” That haze of political uncertainty will keep a lid on stock market gains for now.


*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.

May 24, 2018

Stocks sank at the open this morning after President Trump canceled the nuclear summit with North Korea. The Dow is down 190 pts and the SPX is down .47%. Wow, the stock market is doing a terrible job of ignoring day-to-day political rhetoric. It fell head-over-heels for Mnuchin’s overly optimistic messaging on the China trade negotiations, and now it feigns total surprise that the North Korean summit may not happen. There are a few groups trading higher today. Utilities are up for the second consecutive day, and telecoms are trying to rebound from a 3-month slide. Industrials are also up modestly because the dollar is a bit weaker. Commodities are mixed in early trading. Gold is up 1%, not surprisingly. WTI crude oil is down 1% to $71.10/barrel. Bonds are trading up today—and over the last week—as yields dip. The 5-year and 10-year Treasury yields are back down to 2.80% and 2.96%, respectively. 


*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.

March 9, 2017

Stocks opened higher this morning (Dow +39 pts; SPX +.16%). Banks and telecom carriers are leading the way. Energy stocks, on the other hand, are following oil prices lower. The VIX Index, a closely watched gauge of fear among traders, is languishing around 11.7. Most commodities are trading down today. WTI crude oil has fallen below $50/barrel for the first time this year as domestic oil inventories continue to build. Bond prices continue to slide as yields head higher. The 5-year and 10-year Treasury note yields are up to 2.11% and 2.58%, respectively. 


*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.

April 8, 2016

The major stock market averages are rebounding from yesterday’s rout (Dow +88 pts; SPX +.58%). European markets are one reason; they are poised to close up about 1.3%. Energy is leading the way (+2.2%) but industrials, materials and financials are also up over 1% in early trading. WTI crude oil has been jumping around on nothing but far-fetched speculation; today it’s trading up toward $40/barrel. There are as many opinions on oil as there are Wall Street analysts. Jeffries says the current oil price is unsustainable and a recovery will be protracted. Merrill Lynch, on the other hand, says US oil production is in freefall and the global oversupply of oil is starting to clear up. Meanwhile, there is no fundamental (supply/demand) reason why WTI crude oil prices are 6% than they were yesterday. Bonds are selling off a bit this morning. The 5- and 10-year Treasury yields are up to 1.18% and 1.74%, respectively. The 2-year Treasury yield, by the way, is down around .7%, suggesting bond traders don’t fear a Fed rate hike any time soon.


*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.