Market News – March 18, 2019

Market News

NEW HOME SALES:  According to the Census Bureau, 607,000 new homes were sold in January.  This is 6.9% below December and 4.1% below January of a year ago.  The graph below shows new home sales since 1963.  Even with increased sales in the last several years, current rates are somewhat low historically.  The supply of…

March 18, 2019

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Market News – February 26, 2019

Market News

NOT SELLING ENOUGH KETCHUP:  As you will see below, stocks advanced last week, but it would have been better had it not been for a 30% drop in Kraft Heinz.  After reporting a significant drop in earnings followed by the announcement of an SEC investigation into its accounting, the stock price plummeted.  There are a…

February 26, 2019

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Market News – February 17, 2019

Market News

STOCKS RISE AGAIN:  Most tech companies have reported their fourth-quarter results, and most have exceeded expectations.  This has been one of the fundamental drivers of the stock rally.  On Friday, the tech-heavy NASDAQ Composite closed more than 20% higher than its Christmas Eve low.  In addition to the tech rally, a trade deal with China…

February 17, 2019

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Market News – February 11, 2019

Market News

THE RICH GET….YOUNGER:  It stands to reason that older Americans would generally be richer due to the time they have to save money.  Thus, according to a recent study by Bloomberg, one third of the country’s wealth is retained by those who are 65 and older.  The average age of those in the U.S. with…

February 11, 2019

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Market News – February 4, 2019

Market News

BIG JUMP:  The U.S. economy added 304,000 jobs in January.  This was the 100th straight month of increased employment (see graph below).  The consensus expectation was about half that figure.  Despite the shutdown, companies kept hiring.  The unemployment rate ticked up from 3.9% to 4.0% due to two factors.  First, 176,000 government workers on temporary…

February 4, 2019

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Market News – January 22, 2019

Market News

FOUR IN A ROW:  U.S. stocks notched their fourth consecutive week of gains last week.  Have fears of an economic slowdown subsided?  Apparently so, at least for now.  Data continues to show a very healthy labor market and the Federal Reserve has lately been indicating flexibility with monetary policy.  Both factors seem to have ignited…

January 22, 2019

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Market News – January 14, 2019

Market News

2019’S GOOD START:  All major U.S. stock indices had a strong week, continuing what has been three weeks of solid and steady growth since the December swoon.  Next week, major companies will begin to report their fourth-quarter earnings, and most analysts have downgraded their forecasts due to trade uncertainty.  We will see how actual results…

January 14, 2019

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Market News – January 7, 2019

Market News

LOTS OF JOBS: The U.S. economy added 312,000 new jobs in December, a surprise to the upside for sure. In addition, the Bureau of Labor Statistics revised its October and November numbers reporting that there were 58,000 more jobs created in those months than earlier reported. In addition, wage growth was higher than expected. Average…

January 7, 2019

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Market News – December 24, 2018

Market News

FED RAISES RATES: The Federal Reserve raised its benchmark interest rate another quarter of a percent on Wednesday. The Fed made it clear that it intends to continue raising rates next year. Fed chair Jerome Powell emphasized the continued strength of U.S. economic growth despite the recent strains caused by weaker growth in Europe and…

December 24, 2018

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Market News – December 17, 2018

Market News

U.S. INDUSTRIAL PRODUCTION INCREASES:  After moving down 0.2% in October, industrial production in the U.S. rose 0.6% in November.  Manufacturing remained steady while the utility and mining sectors grew.  Industrial production in the U.S. is now 26% above the recession low and 4% above the pre-recession peak.     FEAR ABOUT GLOBAL ECONOMIC GROWTH SETS…

December 17, 2018

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