capacity utilization

March 16, 2018

The major stock market averages opened higher today (Dow +104 pts; SPX +.36%). Nearly all sectors are in the green, led by energy (+1%), telecom (+.65%) and financials (+.7%). Only tech is trading slightly lower. It looks like traders are putting aside for the moment chaos as the White House. European markets are poised to close up about .7% although most of Asia was down overnight. The VIX Index is trading down toward 15.3. The dollar is stronger today after some better than expected economic data. WTI crude oil opened roughly unchanged but suddenly, and unexpectedly, spiked to $62.00/barrel. Bonds are falling in price, rising in yield. That makes sense alongside a stronger dollar. The 5-year and 10-year Treasury yields are up around 2.63% and 2.84%.


*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 17, 2017

Stocks opened mixed this morning (Dow -11 pts; SPX flat). Some key groups are lower in early trading, including banks, transports, biotechs, and retailers. On the other hand, utilities, energy, telecom and materials sectors are in the green. The VIX Index is up around 11.3 (considered very low). VIX April futures are trading at 13.2, and have been trending lower this month. Commodities are mostly higher on the day. Oil is flat around $48.76/barrel. Over the past month oil prices have fallen about 8%. Bonds are mostly higher in early trading. The 5- and 10-year Treasury yields ticked down to 2.01% and 2.50%, 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.

October 17, 2016

he major stock market averages are meandering around flat this morning (Dow -24 pts; SPX -.05%). Utilities and telecoms are up .3% to .6% in early trading. Biotechs and gold miners are also in the green. Energy and consumer discretionary sectors are lower. Both Asia and Europe ended the session in the red. WTI crude oil is down just under $50/barrel. The dollar is slightly weaker and bonds are slightly higher. The 5- and 10-year Treasury yields ticked down to 1.25% and 1.77%, respectively. Yields are hovering near 4-month highs. Last week Fed Chair Yellen said she’s comfortable running with a “high-pressure” economy. That means she believes the Fed should be patient and slow with interest rate hikes even as inflation begins to rise. On the other hand, Fed Vice-Chair Fischer warned today that continued low interest rates are dangerous to financial stability.  


*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 17, 2016

tocks opened lower this morning despite some better than expected economic data. The Dow and S&P 500 are currently down 55 pts & .2%, respectively. The defensive sectors (consumer staples, utilities) are taking it on the chin. The banks and transports, on the other hand, are in green in early trading. The dollar is slightly weaker on the day and commodities are a bit higher. The Bloomberg Commodity Index, by the way, is up 9% so far this year. WTI crude oil is trading up to $48/barrel. That’s a fresh 6-month high. Bonds are lower on the day after a higher inflation report (see below). The 5- and 10-year Treasury yields are up to 1.27% and 1.75%, respectively. The 2-year Treasury, which is more sensitive to Fed rate hike expectations, has moved up to .8% from .71% a week ago. 


*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 16, 2016

Stocks opened lower this morning but quickly turned around. The Dow and SPX are current up 8 pts & .1%, respectively. Energy, tech and financials are bouncing back, but the healthcare sector continues to languish. In fact, healthcare is the worst performing sector year-to-date despite the fact that earnings season confirmed solid revenue & earnings growth, which exceeded Wall Street expectations. Much of the recent weakness can be attributed to the presidential campaign. Politicians are eager to deride pharmaceutical and biotech companies and are calling for drug price cuts. 


*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.