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DAILY UPDATE: Stocks Slide but Schwab Hit Hard

Posted on April 15, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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A top investor in Charles Schwab sold its entire stake amid turmoil in the banking sector in March.
GQG Partners told the Financial Times it had ditched its $1.4 billion stake in the lender.
REF: https://www.ft.com/content/059e8214-0b38-44d6-8c76-23aaed2bbd4e
Schwab’s stock has dropped over 30% since the start of March, making it one of the worst-hit banks.
CITE: https://www.r2library.com/Resource

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The domestic stock markets owe much of their resilience today to the strength of the biggest companies, which investors tend to favor when recessions appear likely, though financial stocks have lagged most of the year, according to Liz Ann Sonders, chief investment strategist at the Schwab Center for Financial Research. Indeed, small-cap stocks were notable laggards yesterday, with the Russell 2000 index falling more than 1%.

The markets appear convinced the Fed will raise its benchmark interest rate by another quarter of a point in May, taking it to a range of 5%–5.25%, even after the larger-than-expected de-celerations in both consumer and producer prices reported earlier this week.

The following is a round-up of yesterday’s market activity:

The S&P 500 Index was down 8.58 (0.2%) at 4137.64; the Dow Jones industrial average was down 143.22 (0.4%) at 33,886.47; the NASDAQ Composite was down 42.81 (0.4%) at 12,123.47.
The 10-year Treasury yield was up about 6 basis points at 3.515%.
CBOE’s Volatility Index was down 0.73 at 17.07.

Among S&P 500 sectors, real estate and utilities were among the weaker performers yesterday. Notwithstanding the day’s weakness, volatility expectations as measured by the VIX dropped to its lowest level since late 2021.

WTI crude oil futures rose modestly and have surged about 24% over the past four weeks, illustrating still-present inflationary forces.

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CITE: https://www.amazon.com/Dictionary-Health-Information-Technology-Security/dp/0826149952/ref=sr_1_5?ie=UTF8&s=books&qid=1254413315&sr=1-5

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DAILY UPDATE: Technology Stocks Soar with the Markets

Posted on April 14, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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A rally on Wall Street yesterday is lifting stocks to their highest level in almost two months following the latest sign that inflation continues to cool. Yesterday’s report showed that prices paid to producers last month were 2.7% higher than a year earlier, the lowest inflation level there in more than two years. The hope on Wall Street is that easier inflation on the wholesale level will not only support profits for companies but also flow through to cooler inflation for consumers. A day earlier, a separate report said inflation for consumers slowed to 5%.

Inflation and how high the Federal Reserve will hike interest rates to tame it have been at the center of Wall Street’s struggles for more than a year. The Fed has hiked rates at such a feverish pace over the last year that it’s already slowed parts of the economy and caused strains to appear in the banking system.

CITE: https://www.r2library.com/Resource/Title/0826102549

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And so, stocks climbed on the cooler-than-expected PPI, and perhaps some optimism around the Q1 earnings season, with several big banks reporting Friday. However, expectations around Fed policy didn’t budge much.

Bond yields were little changed and markets still see a 70% probability of the Fed enacting a quarter-point rate increase in May, according to the CME FedWatch tool.

The following is a round-up of yesterday’s market activity:

The S&P 500 Index was up 54.27 points (1.3%) at 4146.22; the Dow Jones industrial average was up 383.19 (1.1%) at 34,029.69; the NASDAQ Composite was up 236.93 (2.0%) at 12,166.27.
The 10-year Treasury yield was up about 3 basis points at 3.447%.
CBOEs Volatility Index was down 1.29 at 17.80.

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DAILY UPDATE: The Markets and Gold Futures

Posted on April 13, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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The consumer-price index, a closely watched inflation gauge that measures what consumers pay for goods and services, rose 5% last month from a year earlier, down from February’s 6% increase and the smallest gain since May 2021, the Labor Department said yesterday. Earlier, the consumer price index for March came in below expectations, rising 0.1% monthly compared to forecasts for a 0.2% increase. Many other indicators have inflation continuing to fall in the coming months as tightening credit conditions and weaker economic demand take a bite out of economic growth.

CITE: https://www.r2library.com/Resource

The following is a round-up of today’s market activity:

The S&P 500 Index was down 16.99 (0.4%) at 4091.95; the Dow Jones industrial average was down 38.29 (0.1%) at 33,646.50; the NASDAQ Composite was down 102.54 (0.9%) at 11,929.34.
The 10-year Treasury yield was down about 3 basis points at 3.404%.
CBOE’s Volatility Index was down 0.01 at 19.09.

Technology stocks led Wednesday’s declines, with the PHLX semiconductor index sinking 1.8%. Consumer discretionary and transportation were also among the weakest sectors, while oilfield services led gainers as crude oil prices extended a recent rally.

WTI crude futures jumped over 2% above $83 a barrel and ended near a five-month high. Gold futures rose a second straight day and remain above $2,000 an ounce.

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CITE: https://www.amazon.com/Dictionary-Health-Information-Technology-Security/dp/0826149952/ref=sr_1_5?ie=UTF8&s=books&qid=1254413315&sr=1-5

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DAILY UPDATE: Inflation with Market Updates

Posted on April 12, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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A closely-watched government measure of inflation is expected to show that price increases cooled further last month. March’s Consumer Price Index (CPI), slated for release today,is expected to come in at5.2%, a slowdown from February’s 6% annual gain, according to estimates from Bloomberg. The number would mark the slowest annual increase in consumer prices since May 2021 but would still be significantly above the Federal Reserve’s 2% target. The Fed has been raising interest rates to try to bring down inflation, but the central bank risks sending the economy into a recession by hiking rates too high too fast.

CITE: https://www.r2library.com/Resource/Title/0826102549

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The following is a round-up of today’s market activity:

The S&P 500^® Index was down 0.17 point at 4108.94; the Dow Jones industrial average was up 98.27 (0.3%) at 33,684.79; the NASDAQ Composite was down 52.48 (0.4%) at 12,031.88.
The 10-year Treasury yield was up about 1 basis point at 3.428%.
CBOE’s Volatility Index was up 0.12 at 19.09.

Energy companies led the gainers, with the PHLX Oil Service Index jumping nearly 2% behind strength in crude oil futures, which rallied to their highest levels since late January. The transportation and financial sectors were also strong.

The U.S. dollar weakened slightly, while gold futures climbed nearly 1% to end a three-day tumble.

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DAILY UPDATE: Sternlicht Speaks on Inflation as the Markets Stabilize

Posted on April 11, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Image result for inflation

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Starwood Capital CEO Barry Sternlicht, who has a net worth of $4.6 billion, says inflation is going to drop—and it’s going to drop hard. In an interview with CNBC’s Squawk Box, Sternlicht was asked what he’d say in response to JPMorgan Chase CEO Jamie Dimon’s annual letter to shareholders, in which Dimon writes that current economic conditions “create more risk and potentially higher inflation,” and higher rate hikes.

However, after saying he’s a big fan of Dimon and that he runs “probably one of the best banks in the world,” Sternlicht clarified to CNBC that “we don’t agree on everything.”

CITE: https://www.r2library.com/Resource

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The following is a round-up of yesterday’s market activity:

The S&P 500^® Index was up 4.09 (0.1%) at 4109.11; the Dow Jones industrial average was up 101.23 (0.3%) at 33,586.52; the NASDAQ Composite was down 3.6 at 12,084.36.
The 10-year Treasury yield was up about 4 basis points at 3.419%.
CBOEs Volatility Index was up 0.54 at 18.94.

Energy and transportation were the strongest-performing S&P 500 sectors, while communications services was the biggest laggard. WTI crude oil futures fell slightly but remained near two-month highs posted last week.

Gold futures fell sharply for the second session in a row. The U.S. dollar index jumped to its strongest level in nearly two weeks.

CITE: https://www.amazon.com/Dictionary-Health-Information-Technology-Security/dp/0826149952/ref=sr_1_5?ie=UTF8&s=books&qid=1254413315&sr=1-5

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DAILY UPDATE: Good Friday with Stock Market Close-Out

Posted on April 7, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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The financial markets will be closed on Friday, April 7th, for Good Friday holiday observation. Most firms will process transaction requests received on April 7th as if received on Monday, April 10, before 4 p.m., Eastern Standard Time. Since it is not a federal holiday, almost everything else will be open. The U.S. bond market will open at its usual 8 a.m. EDT on Friday but close early at noon EDT. Regular hours resume on Monday.

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Here’s how the major indexes performed Thursday:

•The S&P 500^® Index rose 14.64 points (0.4%) to 4105.02; the Dow Jones industrial average was little changed at 33,485.29; the NASDAQ Composite rose 91.09 (0.8%) to 12,087.96.

•The 10-year Treasury yield rose about 2 basis points to 3.305%.

•CBOE’s Volatility Index was down 0.68 at 18.40.

After jumping 7% in the first quarter, the S&P 500 Index started out the second quarter posting a slight drop for the week. Tech stocks were generally firm, and communication services led gainers among S&P 500 sectors, while energy stocks led declines. WTI crude futures were little changed but remained above $80 a barrel and near two-month highs. Gold futures extended Wednesday declines from 13-month highs.

CITE: https://www.r2library.com/Resource/Title/082610254

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DAILY UPDATE: The Softening Economic Markets

Posted on April 6, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

“Sameach Pesach”

Holy [Maundy] Thursday

By Staff Reporters

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Markets: The NASDAQ extended its losing streak for a third day yesterday amidst a mixed showing for stocks overall. Among the tech stocks having a rough day was cybersecurity giant Zscaler, as investors got new data suggesting the labor market may be cooling (setting off recession jitters again).

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This week’s economic numbers “all point to a softening economy,” but not necessarily a “soft landing,” says Kevin Gordon, senior investment strategist at the Schwab Center for Financial Research. An economic slowdown that averts recession “is what the Fed is looking for, but the market is saying today—with both stock prices and bond yields lower—that recession fears are outweighing hopes for a soft landing,” Kevin says.

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Here’s how the major indexes performed:

The S&P 500^® Index fell 10.22 points (0.3%) to 4090.38; the Dow Jones industrial average rose 80.34 (0.2%) to 33482.72; the NASDAQ Composite fell 129.47 (1.1%) to 11996.86.
The 10-year Treasury yield fell about 3 basis points to 3.309%.
CBOEs Volatility Index was up 0.12 at 19.12.

Among S&P 500 sectors, consumer discretionary and industrial stocks led declines. One bright spot was the healthcare sector, which jumped nearly 2%, helped by gains in Johnson & Johnson (JNJ) and Eli Lilly (LLY). Recession concerns weighed particularly heavily on small-cap stocks, as the Russell 2000 index dropped near a two-week low. WTI crude futures fell slightly but remained above $80 a barrel and near two-month highs.

Gold futures extended this week’s rally and ended at a 13-month high.

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CITE: https://www.amazon.com/Dictionary-Health-Information-Technology-Security/dp/0826149952/ref=sr_1_5?ie=UTF8&s=books&qid=1254413315&sr=1-5

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DAILY UPDATE: The Domestic Markets

Posted on April 5, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Happy Passover to all those celebrating tonight

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Johnson & Johnson proposes monster $8.9 billion talc settlement. The healthcare giant offered $8.9 billion to settle lawsuits from tens of thousands of people who claim that its talc-based powders and other products gave them cancer. It’s a huge increase from the $2 billion J&J originally offered and would be one of the largest product liability settlements in history, according to the WSJ. To clinch the settlement, J&J needs support from more than 75% of the voting claimants—and it thinks it has it.

And here’s how the major indexes performed yesterday, Tuesday:

The S&P 500 Index fell 23.91 points (0.6%) to 4,100.60; the Dow Jones industrial average fell 198.77 (0.6%) to 33,402.38; the NASDAQ Composite fell 63.13 (0.5%) to 12,126.33.
The 10-year Treasury yield fell about 9 basis points to 3.346%.
CBOE’s Volatility Index was up 0.44 at 18.99.

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Small-cap stocks were among the weakest performers Tuesday, with the Russell 2000 index sinking more than 2%. Industrial, energy, and financial stocks led decliners among S&P 500 sectors. Gold futures surged to a 13-month high, while the U.S. dollar index slipped.

Shares of Walmart fell as the largest U.S. retailer began its investor meeting Tuesday. Comments from Walmart executives could offer indications on the overall financial health and spending patterns of U.S. consumers. The company said in February that high prices and weak demand for discretionary items could be headwinds.

CITE: https://www.amazon.com/Dictionary-Health-Information-Technology-Security/dp/0826149952/ref=sr_1_5?ie=UTF8&s=books&qid=1254413315&sr=1-5

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DAILY UPDATE: About the Markets

Posted on April 4, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Major U.S. stock indexes ended mixed, after the announcement of a surprise OPEC+ production cut sent crude oil prices to two-month highs and fueled inflation concerns that could keep the Federal Reserve in policy-tightening mode. This weekend, several OPEC+ members, including Saudi Arabia, announced production cuts totaling nearly 1.2 million barrels a day that are slated to start in May. In response, WTI crude futures soared above $80 a barrel. Word of the planned cuts also boosted expectations that the Fed could raise its benchmark interest rate again in May as the central bank extends efforts to tamp down inflation. The OPEC+ cuts “suggest more headline inflation pressure in the near-term,” says Jeffrey Kleintop, chief global investment strategist at Charles Schwab & Co. The potential for further waves of inflation will “keep central banks from declaring victory over excessive price gains,” he adds. “That’s another headwind for tech stocks and other ‘long duration’ equities that get more of their cash flow in the future than in the near term.”

CITE: https://www.r2library.com

The following is a round-up of today’s market activity:

The S&P 500^® Index was up 15.2 (0.4%) at 4124.51, the highest close since Feb. 15; the Dow Jones industrial average was up 327 (1.0%) at 33601.15; the NASDAQ Composite was down 32.45 (0.3%) at 12189.45.
The 10-year Treasury yield was down about 7 basis points at 3.417%.
CBOE’s Volatility Index was down 0.14 at 18.56.

Oil producers and other energy companies led gainers Monday. Health care stocks also outperformed. Consumer discretionary and real estate were among the laggards.

Among individual stocks, Tesla (TSLA) shares tumbled over 6% following reports the electric car-maker delivered just 423,000 vehicles in the first quarter. Analysts had expected 430,000, according to research firm FactSet.

Looking ahead, medical companies, especially vaccine makers, may be worth watching this week with the World Vaccine Congress taking place in Washington, D.C. Some well-known vaccine makers include Moderna (MRNA), Johnson & Johnson (JNJ), and GlaxoSmithKline (GSK). Late last month, Walgreens Boots Alliance (WBA) reported a steep year-over-year decline in demand for COVID-19 vaccinations.

The U.S. dollar index fell slightly, while gold futures climbed above $2,000 per ounce to post their highest close in over two years.

CITE: https://www.amazon.com/Dictionary-Health-Information-Technology-Security/dp/0826149952/ref=sr_1_5?ie=UTF8&s=books&qid=1254413315&sr=1-5

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DAILY UPDATE: Charles Schwab VERSUS First Quarter 2023 Stock Market Results

Posted on April 2, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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A disastrous month of March is what Charles Schwab has just experienced. An avalanche of bad news fell on the firm. The stock fell 33% between Feb. 28 and Mar. 31. At the end of February, Charles Schwab’s shares were trading at around $77.92. A month later the price is now $52.38. The difference translates to more than $47 billion in market capitalization wiped out in just one month. According to Bloomberg News, this is Charles Schwab’s worst month since the October 1987 stock market crash, known as Black Monday. That day, the Dow Jones index lost 508 points, a decline of 22.6% and the largest daily decline in a stock market index at the time. Only the drop by 76% of the Icelandic stock market in 2008 would exceed this record.

VERSUS

With the first quarter of 2023 behind us, and despite wild fluctuation due to continuous rate hikes from the Fed and an unexpected bank panic, stocks and bonds managed to turn in a pretty, pretty, pretty good performance for the quarter. The S&P 500 gained 7%, and the Dow Jones Industrial Average gained 0.4%. But if the market’s metaphorical report card is impressive, tech companies were indisputably the honors students.

CITE: https://www.r2library.com/Resource/Title/082610254

The LEADERS

Wall Street rewarded tech companies’ layoffs and other cost cutting measures, giving tech stocks a resurgence. And with ChatGPT becoming a household name, investors have their money on generative AI as the next big bet. As of last night:

The tech-heavy NASDAQ Composite index rose a whopping 18% since January 1, its largest quarterly gain in two years.
Stocks of the tech giants leading the charge in AI-powered search, Microsoft and Alphabet, are up 20% and 16%, respectively.
Bitcoin surged 72%.
CITE: https://www.amazon.com/Comprehensive-Financial-Planning-Strategies-Advisors/dp/1482240289/ref=sr_1_1?ie=UTF8&qid=1418580820&sr=8-1&keywords=david+marcinko

The LAGGARDS

Bank stocks were a delight for short sellers, who made $2 billion betting against the sector in the past three months.

Smaller institutions were most badly injured by the bank panic: The SPRD S&P Regional Banking ETF, which consists of non-behemoth banks, had more than a quarter of its value wiped out in Q1.
Large banks are feeling the pinch of rising interest rates: Global merger and acquisition deals suffered the biggest first-quarter decline since 2001, according to data analyzed by the Financial Times.
CITE: https://www.amazon.com/Comprehensive-Financial-Planning-Strategies-Advisors/dp/1482240289/ref=sr_1_1?ie=UTF8&qid=1418580820&sr=8-1&keywords=david+marcinko

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DAILY UPDATE: Stock Markets Blast Off – No Fool!

Posted on April 1, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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April Fools’ Day—occurring on April 1 each year—has been celebrated for several centuries by different cultures, though its exact origins remain a mystery. April Fools’ Day traditions include playing hoaxes or practical jokes on others, often yelling “April Fools!” at the end to clue in the subject of the April Fools’ Day prank. While its exact history is shrouded in mystery, the embrace of April Fools’ Day jokes by the media and major brands has ensured the unofficial holiday’s long life.

CITE: https://www.r2library.com/Resource/Title/082610254

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Investors celebrated a lower-than-expected reading on the Federal Reserve’s preferred inflation gauge by driving major U.S. stock indexes higher Friday, the last trading day of the first quarter. Sentiment got a boost after reports that the personal consumption expenditures (PCE) index rose 0.3% in February, a little below the 0.4% economists were expecting, and 5% from the same month a year ago. Core PCE inflation, which excludes volatile food and inflation prices, was also up 0.3% from the previous month and 4.6% from a year earlier. PCE and core PCE both rose 0.6% in January from the month before.

Despite wild fluctuation due to continuous rate hikes from the Fed and an unexpected bank panic, stocks and bonds managed to turn in a pretty, pretty, pretty good performance for the quarter. The S&P 500 gained 7%, and the Dow Jones Industrial Average gained 0.4%.

But, tech companies were indisputably the market leaders.

CITE: https://www.amazon.com/Comprehensive-Financial-Planning-Strategies-Advisors/dp/1482240289/ref=sr_1_1?ie=UTF8&qid=1418580820&sr=8-1&keywords=david+marcinko

LEADERS

Wall Street rewarded tech companies’ layoffs and other cost cutting measures, giving tech stocks a resurgence. And with ChatGPT becoming a household name, investors have their money on generative AI as the next big bet. As of last night:

The tech-heavy NASDAQ Composite index rose a whopping 18% since January 1st, its largest quarterly gain in two years.
Stocks of the tech giants leading the charge in AI-powered search, Microsoft and Alphabet, are up 20% and 16%, respectively.

Bitcoin surged 72%.

CITE: https://www.amazon.com/Dictionary-Health-Information-Technology-Security/dp/0826149952/ref=sr_1_5?ie=UTF8&s=books&qid=1254413315&sr=1-5

LAGGARDS

Bank stocks were a delight for short sellers, who made $2 billion betting against the sector in the past three months.

Smaller institutions were most badly injured by the bank panic: The SPRD S&P Regional Banking ETF, which consists of non-behemoth banks, had more than a quarter of its value wiped out in Q1.
Large banks are feeling the pinch of rising interest rates: Global merger and acquisition deals suffered the biggest first-quarter decline since 2001, according to data analyzed by the Financial Times.

“The 0.3% monthly increase in core PCE was a step in the right direction but suggests the path to 2% inflation will still likely be long and bumpy,” says Collin Martin, a fixed income strategist at the Schwab Center for Financial Research.

CITE: https://www.amazon.com/Comprehensive-Financial-Planning-Strategies-Advisors/dp/1482240289/ref=sr_1_1?ie=UTF8&qid=1418580820&sr=8-1&keywords=david+marcinko

Here’s how the major indexes performed Friday.

The S&P 500 Index rose 58 points (1.44%) to 4109.05; the Dow Jones industrial average was up 415 points (1.26%) at 33274.15; the NASDAQ Composite was up 208 points (1.74%) at 12221.91.
The 10-year Treasury yield slipped seven basis points to 3.482%.
CBOEs Volatility Index was down 22 basis points (1.16%) at 18.78.

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DAILY UPDATE: Charles Schwab and the Major Market Indices

Posted on March 31, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Analysts at Morgan Stanley downgraded Charles Schwab Corp (NYSE: SCHW) on Tuesday, citing concerns over cash sorting and regulatory changes. But, Schwab CEO Walt Bettinger recently said that the company’s banking unit had enough liquidity to cover if 100% of its bank deposits ran off without having to sell a single security — Morgan Stanley says otherwise. Schwab’s recent performance has not been up to Morgan Stanley’s expectations, with customers moving cash out of sweep accounts into money market funds at a rate twice that which the bank had been modeling.

CITE: https://www.r2library.com/Resource/Title/082610254

***

Here’s how the major indexes performed Thursday.

The S&P 500^® Index rose 23 points (0.57%) to 4050.84; the Dow Jones industrial average was up 141 points (0.43%) at 32859.03; the NASDAQ Composite was up 87 points (0.73%) at 12013.47.
The 10-year Treasury yield slipped 2 basis points to 3.555%.
CBOE’s Volatility Index was little changed at 19.14.

***

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DAILY UPDATE: CVS Buys Signify Health, Narcan Goes OTC and the Technology Markets Ascend

Posted on March 30, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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CVS expects to finalize its $8 billion acquisition of Signify Health this week, the retail pharmacy giant said yesterday. CVS beat out both Amazon and UnitedHealth Group to buy Signify, a value-based provider network. The company announced the deal last September, and executives said they expect it to close “on or around March 29th.”

In a phone call following the deal announcement, Shawn Guertin, EVP and CFO at CVS, said the company anticipates that acquiring Signify will “generate attractive returns” for CVS. The acquisition strengthens CVS’s goal of becoming a value-based healthcare company and could give it a leg up over rival Walgreens. Both companies have doubled down on value-based care in the last couple of years, making several multi-billion dollar deals, such as Walgreens’s $5.2 billion VillageMD acquisition in 2021 and CVS’s $10.6 billion takeover of Oak Street Health.

***

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The U.S. Food and Drug Administration has approved NARCAN, an overdose-reversing nasal spray, for over-the-counter, non-prescription sale, the agency just announced. The FDA green light marks the first naloxone product approved for use without a prescription. Naloxone rapidly reverses the effects of an opioid overdose, including situations where fentanyl is involved. In the 12-month period ending in October 2022, the United States recorded 101,750 overdose deaths, primarily from opioids including fentanyl, according to the FDA.

“Today’s action paves the way for the life-saving medication to reverse an opioid overdose to be sold directly to consumers in places like drug stores, convenience stores, grocery stores and gas stations, as well as online,” the agency said in a news release.

***

Here’s how the major indexes performed yesterday:

The S&P 500^® Index rose roughly 57 points (1.42%) to 4027.83; the Dow Jones industrial average was up 323 points (1.0%) at 32717.73; the NASDAQ Composite was up 210 points (1.79%) at 11926.24.
The 10-year Treasury yield was little changed at 3.575%.
CBOEs Volatility Index was down 80 basis points (4.01%) at 19.17.

***

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DAILY UPDATE: Syzygy and the Mixed Domestic Markets

Posted on March 28, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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A rare alignment of five planets will be visible in the night sky this week, but this Tuesday [tonight] evening will be your best bet. Just head outside right after sunset, look west, and you’ll see Mercury, Venus, Mars, Jupiter, and Uranus appear to line up in an arc shape below the crescent moon. Anyone on Earth should be able to see it, even if you’re living in a city with light pollution.

DEFINITION: The word is often used in reference to the Sun, Earth, and either the Moon or a planet, where the latter is in conjunction or opposition. Solar and lunar eclipses occur at times of syzygy, as do transits and occultations. The term is often applied when the Sun and Moon are in conjunction (new moon) or opposition (full moon).

The word syzygy is often used to describe interesting configurations of astronomical objects in general. For example, one such case occurred on March 21, 1894, around 23:00 GMT, when Mercury transited the Sun as would have been seen from Venus, and Mercury and Venus both simultaneously transited the Sun as seen from Saturn. It is also used to describe situations when all the planets are on the same side of the Sun although they are not necessarily in a straight line, such as on March 10, 1982.

***

Here’s how the mixed markets fared yesterday on Monday:

The S&P 500^® Index was up 6.54 points (0.16%) at 3977.53; the Dow Jones industrial average was up 194.55 points (0.6%) at 32432.08; the NASDAQ Composite was down 55.12 points (0.47%) at 11768.84.
The 10-year Treasury yield was up around 17 basis points at 3.542%.
CBOEs Volatility Index was down 1.05 points (4.8%) at 20.71.

Outside of the financial sector, energy also had a good day Monday, as the apparent return to calm in the world of banks helped ease concerns about the economy. Oil prices recovered, with West Texas Intermediate rising more than 5% to roughly $73.

***

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DAILY UPDATE: Jack Dorsey, Deutsche Bank and the Markets

Posted on March 25, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Jack Dorsey’s wealth tumbled after Hindenburg Research targeted his payments company Block, per Bloomberg. The short seller alleged Block misled investors “with inflated metrics” Block’s share price tumbled as much as 22% on Thursday on Hindenburg’s report.

Short seller Hindenburg Research has hit another billionaire’s fortune with a report. Jack Dorsey, the co-founder of payments company Block and Twitter, saw his net worth tumble by $526 million, or 11%, to $4.4 billion after the US-based research firm led by Nathan Anderson accused Block of misleading investors in a March 23 report, according to Bloomberg. Dorsey isn’t on the list of the world’s 500 richest persons on the Bloomberg Billionaires Index currently. He was previously featured at number 456 with a net worth of $5.41 billion on March 22nd, per Insider’s scan of the Index on Wednesday.

***

Investors sparked a furious selloff in Deutsche Bank AG and thrust one of Europe’s most important lenders into the center of concerns about the health of the global financial system. Shares of Germany’s largest lender tumbled as much as 15%, their third consecutive day of losses, though they later regained some ground and were recently down 10%. The cost to insure against its default using credit-default swaps soared to their highest levels since 2020.

***

Chairman Jerome Powell was ambiguous this week about future Federal Reserve moves, suggesting “some additional policy firming may be needed.”

Treasury yields dropped near seven-month lows, a seeming indication of escalating recession worries after the Fed raised its benchmark lending rate nine times to a range of 4.75% to 5% over the past year. The release next week of updated data on consumer confidence, inflation, and economic growth will likely be in focus.

Monetary Policy: https://medicalexecutivepost.com/2023/03/17/the-modern-us-monetary-system/

The swings in stock prices this week “were consistent with the unclear outlook for monetary policy, the banking system, and the broader economy,” says Kevin Gordon, senior investment strategist at Charles Schwab. “More time needs to pass before we know the true impact of the expected tightening in credit conditions.”

The S&P 500^® Index was up 22.27 (0.6%) at 3970.99; the Dow Jones industrial average was up 132.28 (0.4%) at 32,237.53; the NASDAQ Composite was up 36.56 (0.3%) at 11,823.96.
The 10-year Treasury yield was little changed at about 3.374%.
CBOE’s Volatility Index was down 0.87 at 21.74.

The real estate sector led the gainers Friday, followed by consumer staples and health care. Financials and consumer discretionary stocks edged lower, and technology stocks were little changed, though the tech-focused NASDAQ Composite still notched its second straight weekly gain. Gold and crude oil futures both declined, while the U.S. dollar strengthened.

***

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DAILY UPDATE: Accenture, Cidara and the Markets

Posted on March 24, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Mass firings at tech companies continue as Accenture (NYSE:ACN) just announced plans to lay off around 19,000 people, or 2.5% of its current workforce, in the next 18 months. Over half of the departures will consist of people in non-billable corporate functions, the professional services firm said.

***

Despite strong gains early this week, antifungal drug developers lost steam even after Cidara Therapeutics (NASDAQ:CDTX) won FDA approval for its candidemia treatment Rezzayo. Shares of Cidara (CDTX) and its rival in antifungal space Scynexis (NASDAQ:SCYX) jumped amid concerns of a fast-spreading fungal infection caused by yeast species Candida auris in the U.S. New approval of Rezzayo for fungal disease candidemia and invasive candidiasis has failed to reignite the interest, with Cidara (CDTX) and Scynexis (SCYX) trading at least 20% lower. Meanwhile, Cidara (CDTX) has not replicated its regulatory success on the financial front, reporting lower-than-expected financials for Q4 2022 on Thursday.

***

The following is a round-up of today’s market activity:

The S&P 500^® Index was up 11.75 (0.3%) at 3948.72; the Dow Jones industrial average was up 75.14 (0.2%) at 32,105.25; the NASDAQ Composite was up 117.44 (1.0%) at 11,787.40.
The 10-year Treasury yield was down about 11 basis points at 3.391%.
CBOE’s Volatility Index was up 0.35 at 22.61.

The energy sector led declines Thursday as crude oil futures fell back under $70 a barrel, with financials and consumer staples also losing ground. Technology and communications stocks managed to hold onto gains.

Finally, gold futures surged over 2% to a one-year high near $2,000 an ounce.

***

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DAILY UPDATE: Wood, Moderna and the Domestic Down Markets

Posted on March 23, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Cathie Wood just revealed that her flagship fund ARK Invest lost over $2 billion last year. Her struggles sum up how rising interest rates are affecting markets, according to the CEO of JPMorgan Asset Management. “When the Federal Reserve hits the brakes, something goes through the windshield,” George Gatch said.
Cathie Wood’s Ark Invest also sold $13.5 million worth of Coinbase stock. The famed money manager now holds a 7% stake in the crypto exchange worth $837 million. Shares of Coinbase are up nearly 30% in the past five trading sessions as crypto prices rallied.

***

Moderna – which received about $10 billion in taxpayer money to produce its COVID-19 vaccine and has since earned billions more in profits selling it – was sued in early 2022 by Genevant Sciences and Arbutus Biopharma Corp., which accused Moderna of using technology they have patented in its vaccine. The two companies have asked a federal court in Delaware to award them damages for the infringement.

CITE: https://www.r2library.com/Resource/Title/0826102549

***

Alex Coffey, senior trading strategist at TD Ameritrade, said recent turmoil in the banking industry has effectively tightened credit conditions, possibly making further rate increases by the Fed unnecessary. Still, the Fed had to send a message that it’s not making an abrupt shift in its efforts to bring inflation down. The Fed has been in “cruise control” raising rates, “staying in the fast lane,” Alex says. “Now, it has turned off cruise and maybe changed lanes, but isn’t doing a quick move toward the off ramp. Today’s increase was not a ‘dovish’ hike, but also not the hawkish stance that was feared.”

“We’re near the end of the tightening cycle,” he adds. “But they have to do this slowly.”

The Fed commentary appeared to briefly soothe the market, causing the S&P 500^® Index to rise as much as 1% soon after the central bank’s announcement, but the benchmark changed direction in the last hour of trading. The reversal may have in part been in response to the ambiguity of Powell’s words, as well as continuing concern about a potential recession.

And so, the following is a round-up of today’s domestic market activity:

The S&P 500 Index was down 65.90 (1.7%) at 3936.97; the Dow Jones industrial average was down 530.49 (1.6%%) at 32,030.11; the NASDAQ Composite was down 190.15 (1.6%) at 11,669.96.
The 10-year Treasury yield was down about 17 basis points at 3.44%.
CBOE’s Volatility Index was up 0.88 at 22.26.

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DAILY UPDATE: Stocks Rise Ahead of the FOMC

Posted on March 22, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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The following is a round-up of yesterday’s market activity:

The S&P 500 Index was up 51.3 (1.3%) at 4002.87, its highest close since March 6th; the Dow Jones industrial average was up 316.02 (1.0%) at 32,560.60; the NASDAQ Composite was up 184.57 (1.6%) at 11,869.11, the highest close since February 15th.
Treasury yield was up about 12 basis points at 3.594%.
CBOE’s Volatility Index was down 2.74 at 21.41.
Related: https://medicalexecutivepost.com/2022/10/08/what-up-vix/

***

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DAILY UPDATE: VIX and the Equity Markets

Posted on March 18, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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The CBOE VIX index the gauge of equity volatility, twice spiked up to 30 before tumbling back down. The ICE BoAML MOVE index, a VIX for the Treasury market, jumped to its highest since the great financial crisis of 2008, at one point up more than 80% from just the start of February.

CITE: https://medicalexecutivepost.com/2022/10/08/what-up-vix/

Those moves illustrate the whipsaw action in stocks and bond yields as traders tried to work out the seriousness of the unfolding banking crisis and how much it would compromise central banks’ ability to sustain their inflation fighting strategies.

CITE: https://www.r2library.com/Resource/Title/0826102549

***

The Dow Jones Industrial Average decreased 385 points (1.2%) to 31,862, the S&P 500 Index fell 44 points (1.1%) to 3,917, and the NASDAQ Composite went down 87 points (0.7%) to 11,631. In heavy volume, 8.8 billion shares of NYSE-listed stocks were traded, and 7.5 billion shares changed hands on the NASDAQ WTI crude oil lost $1.61 to $66.74 per barrel.

Elsewhere, the gold spot price climbed $58.70 to $1,981.70 per ounce, and the Dollar Index went down 0.5% to 103.90. Markets ended mixed for the week, as the DJIA nudged 0.2% lower, while the S&P 500 gained 1.4%, and the NASDAQ Composite advanced 4.4%.

***

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DAILY UPDATE: Banks that Paused, Charles Schwab, Vanguard and the Equity Markets

Posted on March 15, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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On Monday, Newsweek published a list of banks that had trading of shares halted. According to the NASDAQ Trader website, these banks were placed under a Volatility Trading Pause. Some of the banks that were placed under a Volatility Trading Pause included PacWest Bancorp, Western Alliance Bancorporation Common Stock, First Republic Bank Common Stock and Comerica Incorporated Common Stock. Some of these banks were placed under the halt several times, but the pauses only lasted a few minutes. For example, the NASDAQ Trader website shows that PacWest Bancorp was halted at 9:49 a.m. EST and resumed at 9:54 a.m. EST.

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Billionaire Charles Schwab’s net worth has plunged about $3 billion since March 8th, 2023.
Shares of Charles Schwab Corp fell sharply amid the collapse of Silicon Valley Bank.
Investors are worried as Charles Schwab Corp is sitting on a significant amount of unrealized losses on its bond assets.

Billionaire Charles Schwab’s fortune has taken a massive beating after shares of the eponymous company he founded plunged amid the banking crisis. Shares of Charles Schwab Corp, a savings and loan holding company, closed 11.6% lower at $51.91 apiece on Monday, bringing its market value lower by nearly 38% so far this year. But, by 11am Tuesday, shares of the corporation were back up 9.5 percent.

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Meanshile, mega-manager Vanguard Funds bought sizable stakes in both Silicon Valley Bank (US:SIVB) and Signature Bank (US:SBNY) in recent months, according to data compiled by Fintel.

***

Finally, U.S. equities finished with gains and near the highs of the day, as investors sifted through the first look at February’s inflation picture. The Consumer Price Index (CPI) rose in line with estimates month-over-month, while the core rate—excluding food and energy—increased a little more than expected. On a year-over-year basis, both the headline and core rate declined, but remained elevated. In other economic news, small business optimism increased last month.

The banking sector remained in the headlines, with many banks climbing higher following sharp losses over the past few trading sessions. In other equity news, United Airlines fore-casted an adjusted Q1 loss, and Meta Platforms announced another round of layoffs that will begin tomorrow.

Treasury yields rebounded, especially at the shorter end of the curve, and the U.S. dollar was nearly unchanged, while crude oil prices tumbled, and gold traded lower.

Asian stocks fell as turmoil in the U.S. banking sector spilled over into the region, while European stocks climbed as investors digested the inflation data out of the U.S.

***

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DAILY UPDATE: E.S.G. Investing is Down but Markets are Up as Marc Benioff Speaks

Posted on March 3, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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The US Senate passed a disapproval resolution formally killing a Department of Labor rule that encourages private retirement plan fiduciaries to consider environment, social and governance (ESG) factors when making investment decisions for over 150 million Americans. ESG is a framework that helps stakeholders understand how an organization is managing risks and opportunities related to environmental, social, and governance criteria (sometimes called ESG factors). ESG is an acronym for Environmental, Social, and Governance. ESG takes the holistic view that sustainability extends beyond just environmental issues. While the term ESG is often used in the context of investing, stakeholders include not just the investment community but also customers, suppliers, and employees, all of whom are increasingly interested in how sustainable an organization’s operations are.

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Stocks Shake Off Fed Uncertainty, Rise in Interest Rates: U.S. equities rallied into the close to finish near the highs of the day, as investors appeared to shake off the persistent rise in interest rates. The markets also digested some earnings reports, as shares of Dow member Salesforce jumped after topping expectations, and Macy’s also moved solidly higher after besting the Street’s forecasts.

However, disappointing guidance from Best Buy took some of the luster of its earnings beat. Elsewhere, the economic calendar added to the Fed uncertainty, as jobless claims unexpectedly dipped, while Q4 productivity was revised lower and unit labor costs were adjusted to the upside. Treasury yields continued their ascent, and the U.S. dollar gained solid ground, while crude oil prices edged higher in choppy trading, and gold was slightly lower.

Asia finished mixed, and Europe posted gains across the board, as the global markets continued to wrestle with recent data.

***

Finally, Marc Benioff is bracing for a recession that shows shades of the dot-com crash and financial crisis. The Salesforce CEO is shifting his focus from sales and deals to efficiency and profitability. Benioff warned that falling stocks and recession fears dampen corporate spending.

***

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DAILY UPDATE: Markets Mixed and Choppy

Posted on March 2, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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U.S. equities finished mixed as the global markets remained choppy amid uncertainty regarding how aggressive monetary policy tightening will remain and what the ultimate impact will be. Q4 earnings season continues to wrap up, with Lowe’s Companies posting mixed results and guidance, while Kohl’s Corporation missed and issued disappointing guidance, and Dollar Tree bested the Street’s forecasts.

In economic news, the ISM Manufacturing Index and S&P Global’s Manufacturing PMI both remained in contraction territory, mortgage applications fell for a third-straight week, and construction spending surprisingly declined.

Treasury yields rose, and the U.S. dollar was lower, while crude oil and gold prices advanced. Asia finished mostly higher, and markets in Europe were mostly lower, as some favorable economic data out of China was met with some disappointing European reports.

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DAILY UPDATE: Stocks Cool Down as February Ends

Posted on February 28, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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It’s the 28th and final day of February. Have you wondered why February is shorter than the other months? Turns out, we have ancient Roman superstitions to thank. Roman King Numa Pompilius tweaked the calendar to sync it with the lunar year, and that included changing every month to 29 days (because even numbers were unlucky at that time). One month, though, needed to have an even number of days, and February was selected since it was when the Romans held rituals for the dead. And so, February was dropped down to 28 days.

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Markets: Stocks started climbing again yesterday after last week’s slump as things calmed down a bit in the bond market. Tech stocks led the upward trend, along with Union-Pacific, which jumped after the railroad company said it would give in to investor pressure and replace its CEO this year.

***

Overall, U.S. equities finished in the green, although well off the best levels of the day, trimming some of last week’s sharp drop.

Treasury yields were mixed, and the U.S. dollar lost ground as the markets continue to grapple with uncertainty regarding how much more aggressive monetary policies in the U.S. and Europe will be to try to cool off inflation.

Gold traded higher and crude oil prices saw modest losses. The equity front was relatively light, though Pfizer is reportedly in talks to acquire Seagen, while Berkshire Hathaway posted Q4 operating earnings that were down year-over-year (y/y) but it noted $2.6 billion in share buybacks.

Finally, in other economic news, durable goods orders fell on the headline level, though core durable goods orders rose, while pending home sales jumped. Asia was broadly lower, while Europe finished with widespread gains.

***

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DAILY UPDATE: The “Bond King” PODCAST as Stocks Move Up

Posted on February 24, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Jeffrey Gundlach has raised the alarm on an impending US recession, warning investors they need to prepare for it regardless of how severe it ends up being. Gundlach — whose nickname is the “Bond King” — is a billionaire investor and the boss of DoubleLine Capital. He warned stocks may come under pressure, loan defaults might surge, and inflation could prove stubborn in a recent Yahoo Finance interview. Moreover, he cautioned that attempting to forestall an economic slump can result in a far more devastating downturn in the future.

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U.S. equities ended higher in a choppy trading session as uncertainty remained regarding the ultimate economic impact of aggressive global central bank tightening. The volatile session followed yesterday’s release of the minutes from the Fed’s February monetary policy meeting, which suggested that the Central Bank may need to continue its rate hike campaign to try to tame inflation. In economic news, jobless claims came in below expectations, and Q4 GDP growth was unexpectedly revised lower and the inflation components came in well above estimates.

Treasury yields were mostly lower in choppy trading, and the U.S. dollar was mostly unchanged, while crude oil prices increased after a string of losses, and gold moved to the downside. Q4 earnings season continued down the home stretch, as Nvidia Corporation rallied after topping estimates and offering upbeat Q1 revenue guidance. Elsewhere, eBay matched earnings forecasts but its outlook garnered scrutiny, and Domino’s Pizza fell after missing revenue forecasts and adjusting its guidance lower.

Asian stocks finished mostly lower, though Japan was closed for a holiday, and markets in Europe were mixed as investors around the globe grappled with the outlook for monetary policies.

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DAILY UPDATE: U.S. Stocks Slow Down after FOMC Minutes

Posted on February 23, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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U.S. equities did an about-face in late-day trading to finish mixed, with the Dow and S&P 500 adding to yesterday’s solid declines. The moves came following the release of the minutes from the Fed’s February 1 monetary policy meeting that showed Committee members remain steadfast in their rate hike campaign despite some cooling in inflationary pressures. In other economic news, mortgage applications fell for a second-straight week.

CITE: https://www.r2library.com/Resource/Title/082610254

Treasury yields were lower, and the U.S. dollar was higher, while crude oil prices tumbled, and gold traded to the downside. As Q4 earnings season continued to roll down the home stretch, Palo Alto Networks topped forecasts and offered upbeat guidance, and TJX Companies offered an outlook that missed forecasts.

In other equity news, Dow member Intel Corporation slashed its dividend and reaffirmed its Q1 outlook. Asia finished lower and Europe was mixed as investors awaited today’s Fed report.

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DAILY UPDATE: Meta C-Suite Executives Exit & ARK Reduces Nvidia Holdings as Markets Collapse

Posted on February 22, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Meta confirmed chief business officer Marne Levine is stepping down after 13 years with the company in order to “recharge and prioritize some quality time with family” before beginning her “next professional chapter.” She’s the third female C-suite leader to leave Meta in recent years, following chief operating officer Sheryl Sandberg’s exit in 2022 and global ad chief Carolyn Everson’s in 2021.

***

Cathie Wood has steadily reduced ARK Invest’s position in Nvidia (NASDAQ: NVDA) over the last four months. Between November 2022 and January 2023, her flagship ARK Innovation ETF (NYSEMKT: ARKK) completely exited its stake in the microchip stock. So far in February, Wood has also significantly trimmed the positions of Nvidia held by two other ARK Invest ETFs. ARK Fintech Innovation ETF (NYSEMKT: ARKF) still owns 48,272 shares of the stock. ARK Next Generation Internet ETF (NYSEMKT: ARKW) still owns 81,054 shares. After the sales, Nvidia ranks as the 22nd- or 23rd-largest holding in both of these ETFs. Wood’s activity isn’t because Nvidia isn’t performing well. Actually, the stock has soared close to 50% so far in 2023. Several stocks that she has bought this year haven’t delivered comparably impressive gains. So, she is likely just taking gains.

***

U.S. equities kicked off the holiday-shortened week by posting sharp losses. Uncertainty regarding the Fed’s future rate hike decisions appeared to pressure market sentiment, as investors grapple with recent hot inflation data and Fedspeak. Retail companies headlined the earnings calendar, as Dow member Walmart bested profit projections and raised its annual dividend, while Dow component Home Depot beat estimates and increased its quarterly dividend, but issued some disappointing guidance. And, Amazon corporate employees will be paid up to 50% less in 2023 due to its falling share price, the WSJ reported. Amazon’s pay packets rely heavily on stock awards, making them vulnerable to price fluctuations. The tech giant is laying off 18,000 employees, its largest ever job cuts, amid weakening economic conditions.

The economic calendar showed manufacturing activity increased but continued to contract, while services activity rose more than expected into expansion territory. Additionally, existing home sales declined in January as the median existing home price continued to rise.

Treasury yields were noticeably higher, and the U.S. dollar gained ground, while crude oil prices were slightly lower, and gold fell. Asia finished mixed, and Europe was mostly lower, as international investors digested some mixed global manufacturing and services sector reports.

Finally, SoftBank Group Corp. founder Masayoshi Son increased the amount of stock pledged as collateral to financial institutions to 175.25 million shares, or about 35% of his total stake in the Japanese conglomerate.

CITE: https://www.r2library.com/Resource/Title/0826102549

***

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DAILY UPDATE: “FAT” Tuesday, Amazon and Shopping Insights

Posted on February 21, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Mardi Gras: New Orleans loves to party all year round, but today aka “Fat Tuesday,” the city will go wild with parades to celebrate Mardis Gras. Down in Rio de Janeiro, Carnival is back in full force and an expected 46 million people will join in on the fun, which lasts through Wednesday.

Shopping insight: Walmart and Home Depot will report earnings this week and share an important update about the American consumer…who seems to be holding up pretty well, despite inflation. Fed minutes on Wednesday, and an inflation report due Friday. Stocks have hit a wall after a blistering start to the year, and the Dow has posted three straight weekly losses.

And, Amazon’s corporate employees will make less money in 2023, people close to the matter just told the Wall Street Journal. Shares of the world’s largest online retailer dropped roughly 36% over the last year, shaking up Amazon’s stock-heavy compensation plan while pulling employee pay much lower than target compensation levels.

***

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DAILY UPDATE: Gas Prices Up – Stock Markets Down

Posted on February 17, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Gasoline prices have unexpectedly risen in January, at a time when Americans normally stay put and demand remains relatively flat. Last week, the national average price for regular gas crept up to $3.51 a gallon, according to the American Automobile Association (AAA), jumping up by 12 cents compared to a week before and 41 cents in December. As of today, regular gas was on average $3.49 a gallon. It was a dark surprise for American consumers wary of the skyrocketing prices experienced last summer when gas reached a record height of $5.02 a gallon on average nationwide

CITE: https://www.r2library.com/Resource/Title/0826102549

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Stocks Closed Lower Amid Wholesale Price Inflation Report

U.S. equities declined sharply following another hotter-than-expected read on inflation, as well as hawkish commentary from Fed officials, which seemed to complicate the outlook for further monetary policy tightening. January’s Producer Price Index (PPI) came in above estimates, causing more Fed uncertainty that had already ramped up following this week’s elevated consumer inflation report, and yesterday’s much stronger-than-anticipated retail sales data. A busy day of economic data also included a lower-than-projected level of jobless claims, softer-than-forecasted housing construction activity, and an unexpected tumble in manufacturing activity out of Philadelphia.

Treasury yields were higher following the inflation report, and the U.S. dollar increased, while crude oil prices nudged lower, and gold was little changed. Q4 earnings season continued to roll on, with Dow member Cisco Systems topping forecasts, though Shopify offered disappointing revenue guidance, and Paramount missed expectations.

Asian and European stocks finished higher for the most part, as investors grappled with the U.S. inflation data and monetary policy uncertainty.

***

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DAILY UPDATE: IBM and SAP Lay-Offs but Equities Positive

Posted on January 28, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Technology giants IBM and SAP joined the ranks of large companies laying off significant numbers of workers, as both announced that they will be laying off thousands of employees.

***

U.S. equities closed out the week on a positive note, as investors sifted through another heavy dose of earnings and economic data. Dow components posted mixed earnings results, as Visa bested expectations, and American Express missed forecasts but offered upbeat guidance.

Additionally, Dow member Chevron also fell short, and Intel disappointed the Street amid a fourth-consecutive quarter of declining sales and warned of future losses. Meanwhile, KLA Corporation beat estimates but offered lackluster guidance. News on the economic front was upbeat, as personal income rose, pending home sales posted a gain for last month, and consumer sentiment was positively revised.

Treasury yields were higher, and the U.S. dollar increased, while crude oil and gold prices declined.

Asian stocks finished out the week with gains in continued light volume as mainland Chinese markets remained closed for the Lunar New Year holiday, and markets in Europe were higher for the most part amid some cautious trading ahead of a host of monetary policy decisions slated for next week.

***

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DAILY UPDATE: Stocks Rise with Economic Data

Posted on January 27, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Q4’s strong GDP numbers are raising hopes that the Fed could actually pull off the tricky “soft landing”—where it knocks down inflation through interest rate hikes without sending economic growth into reverse. The resilient labor market is cooperating: Despite all the headlines about layoffs, jobless claims fell last week to their lowest point since April 2022.

CITE: https://www.r2library.com/Resource/Title/0826102549

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U.S. stocks ended the day in the green as the markets digested a host of economic and earnings data. The economic calendar came in heavy today, as Q4 GDP growth was higher than expected, jobless claims unexpectedly fell, new home sales rose, and durable goods orders jumped, but dipped when stripping out the volatile component of transportation activity. Several Dow members were in focus, as IBM exceeded expectations, though its cash flow performance garnered some scrutiny on the Street, and Dow Inc. missed quarterly estimates. Fellow Dow component Chevron announced an increased dividend and a new $75.0 billion share repurchase plan, while in other news, Tesla topped quarterly estimates and offered an upbeat outlook.

Treasury yields traded mostly higher, and the U.S. dollar advanced, while crude oil prices increased, and gold moved to the downside.

Asian stocks finished mixed in lighter volume as several markets remained closed for holidays, while markets in Europe were higher for the most part, adding to the region’s strong start to the year.

***

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DAILY UPDATE: Markets Morass & Walgreens Boots Alliance

Posted on January 26, 2023 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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Image result for morass

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U.S. equities came well off their lows of the day to finish nearly where they began, as the Street sifted through a slew of mixed results with Q4 earnings season kicking into gear.

IOW: A seismic morass.

Dow member Microsoft topped profit projections, but its revenues and guidance disappointed, and Dow Component Boeing Company posted an unexpected loss, and its revenues came in short of forecasts. Elsewhere, AT&T exceeded earnings estimates and topped subscriber expectations, which are overshadowing its lackluster guidance, and Texas Instruments is lower on its outlook. The economic calendar was relatively light today, with the lone report being a third-straight weekly gain for mortgage applications.

Treasury yields were lower, and the U.S. dollar lost ground, while crude oil prices were nearly unchanged, and gold prices were higher.

And, Asia finished mixed, with mainland China and Hong Kong remaining closed for the Lunar New Year holiday, and Europe was mostly lower as investors continued to digest yesterday’s flood of manufacturing and services data.

***

Finally, Walgreens Boots Alliance Inc. is weighing a sale of its pharmacy automation business, which could fetch up to $2 billion, according to people familiar with the matter.

***

CITE: https://www.r2library.com/Resource/Title/0826102549

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DJIA Surges!

Posted on December 13, 2022 by Dr. David Edward Marcinko MBA MEd CMP™

By Staff Reporters

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The DJIA Briefly surged over 600 points this morning.

WHY DOW?

Inflation data showed the Consumer Price Index rose 0.1% on the month of November, cooler than the expected 0.3% rise. The index rose 7.1% year over year, lower than the 7.3% Econoday estimate.

CITE: https://www.r2library.com/Resource/Title/082610254

In addition, the next meeting Fed meeting kicks off Tuesday with an interest rate decision on Wednesday. While the Fed has already heavily telegraphed a 50-basis-point hike, investors will be looking for further guidance on the Fed’s plans.

Finally, according to the CME’s FedWatch tool, traders place a 79% chance of a 50-basis-point rate hike.

***

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Got Cash Money in the Bank?

Posted on September 4, 2013 by Dr. David Edward Marcinko MBA MEd CMP™

Is it Really a Long-Term Investment?

By Rick Kahler CFP® http://www.KahlerFinancial.com

Got money in the bank? Of course, that’s a good thing.

But, more than a fourth of Americans think the best long-term investment strategy is money in the bank. However, that may be a bad thing!

So, what about medical professionals; and what is a doctor to do?

The Bankrate Survey

Here is the rather discouraging result of a July survey by Bankrate. One of its questions was, “For money you wouldn’t need for more than 10 years, which one of the following do you think would be the best way to invest the money?”

Cash was the top choice at 26%, followed by real estate at 23%. Sixteen percent of the respondents chose precious metals such as gold. Only 14% would put their long-term investment into the stock market, and just 8% thought bonds were the best choice.

Head-on-Desk Syndrome

Doh! That thumping sound you hear is me banging my head on my desk.

I assume those who opted for cash did so because keeping money in the bank seemed to be the safest choice. For long-term investing, however, that safety is an illusion. The best and safest place to put your nest egg for the future is not in the bank, but in a well-diversified portfolio with a variety of asset classes.

Here’s why:

Savings accounts and CDs are safe places to store relatively small amounts of cash that you expect to need within the next few months or years. The funds are protected by insurance. You know exactly where your money is, and you can get your hands on it anytime you want.

Short Term Stability

This short-term safety does not make the bank a good place for money you will need for retirement or other needs ten years or so into the future. It may seem like safe investing because the amount in your account never goes down. You’re always earning interest. Yet, over time, that interest isn’t enough to keep pace with inflation. The purchasing power of your money decreases, which means you’re actually losing money. It just doesn’t feel like a loss because you don’t see the loss in value.

Stock Markets Fluctuate

In contrast, the stock market fluctuates. The media reports constantly that “the DOW is up” or “NASDAQ is down,” as if those day-to-day numbers matter. This fosters a perception that investing in the stock market is risky. Combine that with the scarcity of education about finances and economics, and it’s no wonder that so many people are afraid of the stock market and view investing almost as a form of gambling.

Wise long-term investing in the stock market is anything but gambling. Instead of trying to buy and sell a few stocks as their prices go up and down, wise investors neutralize the impact of market fluctuations by owning a vast assortment of assets.

A Dual Strategy

This is accomplished with a two-part strategy.

1. The first is to invest in mutual funds rather than individual stocks. With just one mutual fund that invests in an index of stocks, you might own thousands of different companies. Your hard-earned fortune isn’t dependent on the fortunes of just a few companies.

2. The second component is asset class diversification. An asset class is a type of investment, such as U. S. and International stocks, U. S. and International bonds, real estate investment trusts, commodities, market neutral funds, Treasury Inflation-Protected Securities, and junk bonds. Ideally, a diversified portfolio should include nine or more asset classes.

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Assessment

By holding small amounts of a great many different companies and asset classes, you spread your risk so broadly that the inevitable fluctuations are small ripples rather than steep gains or losses. As some types of investments decline in value, other types will be gaining value. Over the long term, the entire portfolio grows.

And, in the long term and for most medical professionals, investing this way is usually safer than money in the bank.

Conclusion

Your thoughts and comments on this ME-P are appreciated. Feel free to review our top-left column, and top-right sidebar materials, links, URLs and related websites, too. Then, subscribe to the ME-P. It is fast, free and secure.

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