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  • Finance 0

    So Much For The Scars Of 1987

    Today marks the 30th anniversary of the 1987 Black Monday Crash, an event that had a major impact on the behavior of investors who experienced it. While it would be completely irrational, given human nature, one would think that the 22% decline in DJIA on 10/19/87 would cause investors to become a little more risk averse at this time of year. If nothing else, the increase in articles every year around this time talking about how bad the crash was would be reason enough to scare some investors every year around this time. Interestingly enough, looking at the historical performance of the DJIA on October 19th of every year where the market wa...
    On October 19, 2017 / By
  • Finance 0

    EC The Approaching US Energy-Economic Crisis

    I was recently asked to give a talk called, “The Approaching US Energy-Economic Crisis.” In other words, how might the United States encounter problems that lead to a crisis? As we will see, many of the problems that could lead to a crisis (such as increased wage disparity and difficulty in collecting enough taxes) are issues that we are already beginning to encounter. In this talk, I first discuss the connection between energy and the economy. Without this connection, it doesn’t make sense to talk about a crisis arising with respect to energy and the economy. I then discuss seven issues that could lead to a US energy-economic crisis. ...
    On October 19, 2017 / By
  • Finance 0

    KeyCorp (KEY) Meets Q3 Earnings Estimates, Revenues Up Y/Y

    Have you been eager to see how KeyCorp (KEY – Free Report) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this Cleveland-based bank-oriented financial services company’s earnings release this morning: In Line Earnings KeyCorp came out with adjusted earnings per share of 35 cents in line with the Zacks Consensus Estimate. Rise in revenue supported the results. How Was the Estimate Revision Trend? You should note that the earnings estimate revisions for KeyCorp depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate remained stable over the la...
    On October 19, 2017 / By
  • Finance 0

    Stock Bulls-This Has Me Biting My Nails

    Below looks at the Bank Index (BKX) over the past 20-years and why the Power of the Pattern feels this could become a very important price point for the bulls. As mentioned in the chart above, the Bank Index is testing the underside long-term rising channel (1) again. At the start of this year, the bank index hit the underside of rising channel (1) at (4) and banks then proceeded to trade sideways for 7-months. The rally in banks of late has the index testing the underside of channel (1) again at (5), which also could be a 2017 double top, at the underside of the long-term channel. Stock bulls should get a little nervous should weakness st...
    On October 19, 2017 / By
  • Finance 0

    Verizon Communications Inc. 3Q17 Earnings Boost Shares

    Verizon Communications Inc. (NYSE:VZ) 3Q17 earnings were released before opening bell this morning. The mobile carrier and internet service provider reported adjusted earnings of 98 cents per share on $31.72 billion in revenue, compared to the consensus estimates of 98 cents per share and $31.45 billion in revenue. In last year’s third quarter, the company posted adjusted earnings of $1.01 per share on $30.94 billion in revenue. See page for author [Public domain], via Wikimedia Commons On a GAAP basis, Verizon 3Q17 earnings were flat year over year at 89 cents per share. Wireless revenue fell 2.4% to $21.6 billion, a bit better than the c...
    On October 19, 2017 / By
  • Finance 0

    U.K. Retail Sales Dip To 4-Year Low Amid Rising Consumer Prices

    U.K. retail sales declined more than expected in September as Brexit uncertainty and surging consumer prices eroded household income. Sales declined by 0.8 percent in September, down from an increase of 0.9 percent in August, the Office for National Statistics reported on Thursday in London. On a yearly basis, sales slowed to 1.5 percent from more than 3 percent, making it the lowest sales since October 2013. In the third quarter, retail sales climbed 0.6 percent, meaning the sector contributed about 0.03 percentage point to the GDP and the decline likely reflect the 3 percent rise in the inflation rate in the month. “That is a disappoint...
    On October 19, 2017 / By
  • Finance 0

    Weekly Unemployment Claims: Down 22K, Lowest Since 1973

    Here is the opening statement from the Department of Labor: In the week ending October 14, the advance figure for seasonally adjusted initial claims was 222,000, a decrease of 22,000 from the previous week’s revised level. This is the lowest level for initial claims since March 31, 1973 when it was 222,000. The previous week’s level was revised up by 1,000 from 243,000 to 244,000. The 4-week moving average was 248,250, a decrease of 9,500 from the previous week’s revised average. The previous week’s average was revised up by 250 from 257,500 to 257,750. Claims taking procedures continue to be severely disrupted in Puer...
    On October 19, 2017 / By
  • Finance 0

    Morning Call For Thursday, Oct. 19

    OVERNIGHT MARKETS AND NEWS Dec E-mini S&Ps (ESZ17 -0.44%) this morning are down -0.51% at a 1-week low and European stocks are down -0.80% at a 2-week low as rising tensions between Spain and Catalonia spurs liquidation in equities and pushed the VIX volatility index up to a 5-week high. In a response to a Thursday deadline set by Spain for the state of Catalonia to renounce its claims to independence, Catalan President Puigdemont said his state may declare independence from Spain unless the government in Madrid agrees to talks. Spanish Prime Minster Rajoy said the Spanish government will start the process of taking direct control of the ...
    On October 19, 2017 / By
  • Finance 0

    Global Markets Shaken By Sudden Equity Sell-Off: Hang Seng Crashes, VIX Surges

    Has the market’s “melt-up” levitation finally ended? Of course, it could be much worse: as Bloomberg’s Paul Jarvis recalls, thirty years ago on this day traders around the globe were staring at their screens in disbelief as stock markets turned to a sea of red: the Dow, S&P 500, FTSE, DAX and CAC fell -23%, -20%, -10%, -9% and -10% respectively. Fast forward to 2017 and the day known as Black Monday appears as little more than a blip in U.S. and European stock markets’ relentless progress. Having closed above the 23,000 mark for the first time on Wednesday, the Dow Jones Industrial Average has led markets back fr...
    On October 19, 2017 / By
  • Finance 0

    Snap-on (SNA) Q3 Earnings Beat Estimates, Sales Strong

    Headquartered in Kenosha, WI, Snap-on Incorporated (SNA – Free Report) is a global provider of tools, equipment, and related solutions for technicians, vehicle service centers, original equipment manufacturers and other industrial users. The company divides its operations in four segments: Snap-on Tools Group, Commercial & Industrial Group, Repair Systems & Information Group and Financial Services segment. Snap-on’s overarching business model, which aims to maximize value-creation by focusing on areas like safety, quality of service, customer satisfaction and innovation, has emerged as a tried and tested growth driver. In ...
    On October 19, 2017 / By