Credit markets are even uglier than stock markets
By now I assume you know that today was another brutal day for U.S. stocks (although markets moved up significantly in the last hour.) The Standard & Poor’s 500 closed down another 1.71% and the Dow Jones Industrials dropped 0.98%. The NASDAQ Composite was...
OPEC production curbs collapse in Russia-Saudi fight
It’s over. The three-year marriage of convenience between Saudi Arabia and Russia is done. The Saudi’s argued that Russia and OPEC producers must cut production further in response to falling demand for oil in the face of the coronavirus outbreak. Russia...
MGM looks like a good test case as Wall Street debates V- or U-shaped recovery from the coronavirus
Shares of MGM resorts International (MGM) fell 11.59% today, Thursday March 5, to close last $20.60. The shares closed at $31.21 at their 2020 high on January 17. The impetus for the latest big drop in the stock was the announcement of the first reported case of the...
S&P 500 gains 4.22% today–there’s a trend here but it’s not what you might think
The “explanation” for today’s 4.22% gain in the S&P 500 and the 4.53% gain in the Dow Jones Industrial Average is that it’s a reaction to the surprising victories by former Vice-President Joe Biden over Vermont Senator Bernie Sanders in...
Is a 20% drop in these Dip-o-Meter stocks enough?
I ran the prices and the performance of the 15 Dip-o-Meter stocks last night to see if any were yet in Buy-on-the-dip category. Of course all those numbers have been left needing big revisions after today’s rally. (I’ll wait a day on that revision to see...
What now for Treasuries and their ETFs? Should you be buying even at record low yields? I’m adding shares of Vanguard’s 1-3 year Treasury ETF
I’d wager that almost nobody today is buying U.S. Treasuries for their yield. The yield on the 10-year Treasury broke below 1% to 0.9043% for the first time EVER. The 10-year finished the day with a yield of 1.01%. The yield on the 2-year Treasury fell to a low...
Oops!”Emergency” interest rate cut spurs U.S. stock sell off as Fed creates negative feedback loop
The U.S. Federal Reserve announced an “emergency” 50 basis point cut to its benchmark interest rate. The cut left the Fed benchmark with a range of 1% to 1.25%. The move comes ahead of the Fed’s regular meeting on March 18. The interest rate cut,...
PMI survey shows U.S. manufacturing remains barely above contraction in February; still better than China’s deep drop
The Institute for Supply Management’s Purchasing Managers’ Index for manufacturing fell to 50.1 in February, down from 50.9 in January. In this survey anything above 50 signals an expansion. The report was good news of a sort since U.S. manufacturing in...
For another day, at least, financial markets continue to believe in central bank fairy dust
Financial markets moved higher on news that finance ministers and central bankers from the Group of Seven economies will hold a teleconference tomorrow, Tuesday, on how to respond to the coronavirus pandemic. The expectation is that central banks in Japan, England,...
Buying General Motors in my Dividend Portfolio
I don’t think the coronavirus stock market rout is over, but I do believe you have to be opportunistic about snapping up dividend yield during this correction. Today shares of General Motor (GM) were down another 2.12% as of 2:40 p.m. New York time. That brings...
For another day the Federal Reserve rallies the market
It was just four sentences–“The fundamentals of the U.S. economy remain strong. However, the coronavirus poses evolving risks to economic activity. The Federal Reserve is closely monitoring developments and their implications for the economic outlook. We will...
U.S. stocks break down on bad coronavirus news from California; technical support fails
This morning it sure looked like U.S. stocks were going to bounce back from yesterday’s beating and from a deeply negative open. After opening down 2.28% at 9:31 a.m. New York time and then sinking even lower to down 3.54% by 10:35, the Standard &...
The odd mini rally in China stocks
It was less obvious today when there were other splashes of green among global stocks. But on Monday and Tuesday, the trend was readily apparent since so few stocks moved up on those days and so much of the market was colored a bright red. Oddly enough some China...
Today’s attempt at a bounce doesn’t hold–S&P 500 closes down in New York
This morning it looked like U.S. stocks would bounce from the drop of Monday and Tuesday–about 6% on the Standard & Poor’s 500. As of 10:51 a.m. New York time the index was up 1.64% to 3182.08. But that has turned out to be the high of the day. By...Selling SolarEdge Technologies out of Picks portfolio on odds of continued market drop
As I was prowling through the wreckage of momentum stocks in the last few days for my post on Tuesday, “They shoot momentum stocks, don’t they” I noticed one very lonely spot of green. While stocks such as Nvidia (NVDA) and Twilio (TWLO) were down...
They shoot momentum stocks don’t they?
The last two days of a plunging stock market on fears that the outbreak of coronavirus will last longer and spread farther than previously imagined have taken a huge chunk out of some momentum stocks. Just today shares of Nvidia (NVDA) fell another 4.11%, Twilio...
Market decides coronavirus outbreak is no time for a bounce
The Standard & Poor’s 500 opened higher today–by 0.65%–a typical reaction the day after a big drop. But stocks quickly reversed direction and by 11:20 a.m. New York time on Tuesday morning, the S&P 500 was down 1.33%. One of the big...
Market wakes up to coronavirus threat–it’s not just China anymore
What’s different this week? Why is the market plunging today on coronavirus fears when last week it shook off the news? Because the last few days have brought news that the coronavirus isn’t limited to China anymore. From Italy comes a report that the...
Coronavirus cases–and deaths–spread beyond China–Is this the feared shift to pandemic outside of China?
Today Japan reported the first two deaths from coronavirus among passengers quarantined on the Diamond Princess cruise liner, South Korea reported its first fatality, and new cases in Iran sparked fears that the disease is spreading in the Middle East. China tallied a...
SolarEdge rockets 17.94% today on analyst upgrades ahead of earnings today after the close
SolarEdge Technologies (SEDG) closed up 17.94% today ahead of fourth quarter earnings due after the close. Cascend Securities raised its target price on the shares by 17% during today’s session. Today’s jump will, of course, make it harder for the company...
It’s still a “Central banks to the rescue” mentality in the financial markets
U.S. stocks were up strongly today on news that the central banks of the United States and China were likely to continue to provide cheap–and cheaper–liquidity to financial markets and economies. In minutes of its January 29 Open Market Committee meeting...
China quarantines 760 million people–think that will have an effect on the economy?
We still don’t know if the coronavirus epidemic is slowing in China–the latest report shows deaths in China up 105 to 1,770 and the official number of cases climbing in mainland China to 70,548. Hubei province has reported 1,933 new cases, up from 1,843...
Raising target on Barrick Gold in Jubak Picks Portfolio and buying the shares for my Dividend Portfolio
Barrick Gold (GOLD) reported fourth quarter earnings of 17 cents a share on Wednesday, February 12. That beat the 14 cents a share estimate from Wall Street analysts for the quarter. A year ago the company earned 6 cents a share in the fourth quarter of 2018. But that...
China changes the way it counts coronavirus cases resulting in 13,300 more cases–and nobody really knows what this means
The calming words from the World Health Organization after Chinese health officials added 13,3000 cases to the total in Hubei province is that this is just a change in how cases are reported and NOT an indication that the epidemic, which has looked to be slowing over...
Unsustainable debt a danger? But it’s so far away, the markets say
Nobody wants to hear that U.S. government and consumer debt aren’t sustainable. Not President Donald Trump. Not the financial markets. Today, February 11, Federal Reserve Board Chair Jerome Powell told the House Financial Services Committee that it was important...
AbbVie continues its run–picks up momentum from Allergan results
Shares of AbbVie (ABBV) tacked on another 1.32% today to a close at $96 continuing a run that began back on January 31 at $81.02. The trend picked up momentum on February 7 after the company reported fourth quarter earnings with better than expected sales for its...
The challenge for the next ten years: Mediocre projected investing returns for a decade
Pickings look rather slim for investors over the next decade, according to the results of Morningstar’s annual survey of financial market forecasts. Certainly much slimmer than the extremely strong returns for U.S. stocks for the last decade. During that period...
Supply chain disruptions from coronavirus worse than earlier projected
Workers at Hon Hai Precision Industry (also known as FoxConn) were originally to be back at work at Apple’s (AAPL) largest manufacturing partner for iPhones today February 10. Then last week the company told workers to stay away from its Shenzhen headquarters...
Here’s why U.S. economy added 225,000 jobs in January, well above projections but U.S. stocks closed down
The U.S. economy added 225,000 jobs in January, well above the average 175,000 jobs added per month in 2019. And still markets fell. The Standard & Poor’s 500 dropped 0.54% and the Dow Jones Industrial Average closed down 0.94%. The NASADAQ Composite...Jim’s Daily Email Alerts:
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