Nordstrom (JWN)

EARNINGS & STIMULUS TO THE RESCUE

EARNINGS & STIMULUS TO THE RESCUE

EARNINGS & STIMULUS TO THE RESCUE

The stock market gapped up at the open today on overseas headlines (see below). The Dow is currently up 126 pts and the SPX is up .24%. Banks are up over 2% in early trading after strong earnings reports from Bank of America (BAC) and Goldman Sachs (GS). Oil fell back under $52/barrel in early trading, but that could easily turn around through the trading day. Bonds are mixed—corporates are modestly higher on the day but Treasuries are selling off as yields tick higher. The 10-year Treasury yield has rebounded to 2.73% from 2.55% just 2 weeks ago. Remember, higher long-term Treasury yields will likely be viewed by investors as a positive for the economic outlook.


*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 10, 2017

Stocks opened lower again this morning (Dow -40 pts; SPX -.18%). The reason: “Doubts swirl on tax overhaul” according to Bloomberg. In the middle of yesterday’s session, the SPX briefly fell 1.18% from its recent all-time high, then recovered. Famed investor Mario Gabelli pointed out that a “1% correction is not a big event,” and if interest rates stay below 2.5%, the market can continue rallying for another “year or two.”  Bank of America/Merrill Lynch says yesterday’s rout was a “dress rehearsal, not the Big One.” The firm notes “insane gains” this year, especially within the tech sector, and one can expect a pullback. The firm says a full stock market meltdown would “require recession risk or moves higher in wage inflation, bond yields, and volatility or credit spreads.” They don’t see that in the near term. 


*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.

December 16, 2016

The major stock market averages opened mixed this morning (Dow +28 pts; SPX flat). Real estate and utilities are the best performing sectors, up over 1%. Financials, consumer discretion and materials are lower. So we’re seeing a risk-off trend today. The VIX Index is down 3% to 12.4, suggesting little fear on the part of investors. The dollar is flat today but has been trending upward (+4.5% this year). And yet, commodities are mostly higher on the year. That could possibly signal better global economic growth overcoming the currency headwind. At the moment, WTI crude oil is up to nearly $52/barrel. Bonds are flattish. The 5-year and 10-year Treasuries are yielding 2.07% and 2.60%. 


*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.