May 13, 2020 @ 6:57 pm | Breaking News |
It will take more than a year, and perhaps several years, for oil demand to recover to what it was before the coronavirus pandemic, said Fatih Birol, executive director of the International Energy Agency ahead of Thursday’s update on energy markets. Crude demand...
May 13, 2020 @ 6:52 pm | Breaking News |
Yesterday, I argued that the barrage of cautionary comments from Federal Reserve officials seemed designed to talk stock prices lower and to push Congress toward a new bigger coronavirus rescue package. (Why might the Fed want to slow the current rally? The only...
May 13, 2020 @ 6:47 pm | Breaking News |
As of 12:30 p.m. New York time today, U.S. stocks had continued their downward move of yesterday. The Standard & Poor’s 500 was lower by 2.23% and the Dow Jones Industrial Average had tumbled 2.35%. The NASDAQ Composite was off 2.44% and the Russell 2000...
May 12, 2020 @ 10:40 pm | Breaking News |
On March 23, the Federal Reserve announced that it would create a facility to buy corporate bunds and ETFs tracking the corporate bond market. That facility remained an all-talk/no-action vehicle until today when the New York Federal Reserve Bank announced that its...
May 12, 2020 @ 10:33 pm | Breaking News |
Think of it as a first step toward a policy move and not as an actual plan for action. In its quarterly monetary policy report released Sunday, the People’s Bank of China said it will resort to “more powerful” policies to counter unprecedented economic challenges from...
May 11, 2020 @ 3:32 pm | Breaking News |
On March 31 Wall Street analysts were projecting a decline in first quarter earnings of 6.9% for the stocks in the Standard & Poor’s 500, according to Factset. As of May 8, with 86% of the S&P 500 reporting, the consensus projection for the quarter was...
May 11, 2020 @ 1:03 pm | Breaking News |
Due to a quirk in the Federal Reserve calendar, the central bank doesn’t meet in May. (Next meeting June 10; last meeting April 29.) That means the Fed has lots of time to jawbone the financial markets and Congress in an effort to get Washington to provide more...
May 7, 2020 @ 7:39 pm | Breaking News |
The Fed funds futures market, which trades bets on where the Federal Reserve’s benchmark interest rates are headed, has rallied this week to send prices for futures contracts in early 2021 above 100. Above 100 traders are pricing in negative interest rates from...
May 7, 2020 @ 7:32 pm | Breaking News |
Initial claims for unemployment totaled 3.17 million for the week ended May 2, the Labor Department reported today. Economists surveyed by Bloomberg had projected 3 million new claims for the week. This week’s total was down from the 3.85 million initial claims...
May 6, 2020 @ 7:14 pm | Breaking News |
A new study by the Federal Reserve that looked at 600 earnings calls last month found that 42% of American non-financial public companies are discussing slashing investments. Another 17% are focused on drawing down on credit lines (The study, conducted by Fed ,...
May 6, 2020 @ 7:03 pm | Breaking News |
Employment at U.S. companies plummeted in April by the most in records back to 2002, according to numbers fro the ADP Research Institute release today.. The report reflects data through April 12 in order to align with the report from the Labor Department for April,...
May 5, 2020 @ 7:19 pm | Breaking News, DIS, Jubak Top 50 Portfolio, Volatility |
How did Wall Street analysts get Disney (DIS) earnings today so wrong? Analysts had been projecting earnings of 86 cents a share. The company reported earnings of just 60 cents for the company’s second quarter. The bigger-than-Disney takeaway here is...
May 5, 2020 @ 7:14 pm | Breaking News |
The Organisation for Economic Cooperation and Development said annualized inflation across the group of 37 advanced economies slowed to 1.7% in March from 2.3% in February. That’s the biggest deceleration since the 2008 global financial crisis. Energy prices...
May 5, 2020 @ 7:10 pm | Breaking News |
Credit card issuers have already cut the credit limits or closed credit card accounts entirely for about 1 in 4 credit card holders–almost 50 million Americans–in the past 30 days, according to a survey byLending Tree’s Compare Cards website. The...
May 4, 2020 @ 6:55 pm | Breaking News |
Okay, the Treasury actually will need to borrow only $2.99 trillion, but close enough, no? It will still be a record. The previous record for borrowing in a single quarter was $530 billion in the July to September 2008 quarter in the fallout from the global financial...
May 4, 2020 @ 6:48 pm | Breaking News |
By the end of April 3.8 million homeowners had sought mortgage relief and were not making their payments. That’s a 2,400% increase from early March, Black Knight, a mortgage technology and data provider, told the Washington Post. The problem may be even worse...
May 1, 2020 @ 7:37 pm | Breaking News |
As economic indicators go, this isn’t one that I follow in normal times. In normal times banks are happy to accept an application for a home equity loan from anyone who owns a house. Real estate is a good credit risk. In normal times. But if you’re still...
May 1, 2020 @ 7:27 pm | Breaking News |
On Wednesday, I felt really stupid. I don’t believe in this rally. I still think we’re due for the bear to come roaring back. And I think the bottom in this market is still somewhere ahead. But on Wednesday April 29, I felt completely WRONG. The Standard...
April 30, 2020 @ 5:48 pm | Breaking News, Dividend Income Portfolio, KO |
Today’s shocking announcement from Royal Dutch Shell (RDS-A) that it would cut its 10% dividend, to 16 cents a share is a brutal reminder of one of the big challenges facing dividend investors. Royal Dutch shares were down 12.02% as of 3 p.m. Nw York time today,...
April 30, 2020 @ 5:45 pm | Breaking News |
The job losses continued, as expected, with 3.84 million people filing new claims for unemployment in the week that ended on April 25. That follows on 4.44 million new claims for unemployment in the prior week. Economists surveyed by Bloomberg had projected 3.5...
April 29, 2020 @ 7:30 pm | Breaking News |
As expected the Federal Reserve left interest rates at their current level of 0%-0.25%. And there were very few changes in the central bank’s language. But a few subtle shifts are worth noting, I believe. The Fed said in early April that “We have also committed...
April 29, 2020 @ 7:24 pm | Breaking News |
The U.S. economy contracted at a 4.8% annualized pace in the first quarter. That’s the worst slide since 2008 and the first down quarter for growth since 2014. Consumer spending, no surprise in days of coronavirus shelter at home orders, led the decline (with a...
April 28, 2020 @ 7:48 pm | Breaking News |
As long as I can remember (which is only back about 40 years when it comes to the economy) the worry has been inflation. From the stagflation of the late 1970s, to Paul Volcker’s brutal but successful assault on inflation in the early 1980s, to the seemingly...
April 28, 2020 @ 7:44 pm | Breaking News |
I’ll bet Mitch McConnell has Federal Reserve chair Jerome Powell tearing his hair out. McConnell has repeatedly said in recent days that he’s opposed to any plan to provide $500 billion or so of Federal (that is taxpayer money) to state and city...
April 27, 2020 @ 7:33 pm | Breaking News, Dividend Income Portfolio, OKE |
The greatest danger of any dividend position right now is from a cut to the dividend payout. That kind of cut would send even an already crushed stock lower. I think that’s the possibility facing shares of ONEOK (OKE) when it reports earnings on April 28. The...
April 27, 2020 @ 7:29 pm | Breaking News |
Today is all about optimism–forget plunging oil prices, uncertain earnings, or a first quarter drop in GDP– for an upturn in the economy as more states–Colorado is newest to climb on board–re-open parts of their economies. Today, at least, no...
April 24, 2020 @ 7:41 pm | Breaking News |
As of the close on April 24, the iShares MSCI Brazil Capped ETF (EWZ) was down 7.71% today to $22.15. Brazil is facing an intertwined crisis as a president who has called the coronavirus pandemic a “fantasy” also struggles with a political crisis that...
April 24, 2020 @ 7:33 pm | Breaking News |
No big moves. No major disruptions. No threats of meltdowns. Today has been a welcome breather, a bit of stability, for market that’s had more than its share of excitement this week. So far. It’s only 1:30 p.m. in New York. And we could see selling or...
April 23, 2020 @ 6:49 pm | Breaking News |
The Financial Times reported that a Chinese trial for Gilead Sciences’s (GILD) antiviral drug remdesivir against Covid-19 ended without meaningful conclusions on its efficacy. That was enough to reverse the gains in the Standard & Poor’s 500 on the...
April 23, 2020 @ 6:44 pm | Breaking News |
A new survey from CBS News shows that most Americans would be reluctant to head out to former activities even if stay-at-home orders were lifted now. Only 13%, for instance, would be comfortable going to a large sports or entertainment event if a stay-at-home order...