Following the massive ADP employment beat (but productivity disappointment), March rate hike odds finally upticked to certainty. Fed Funds futures now imply a 100% chance that The Fed hikes next week. Up from low 20s to 100% in a month… What did The Fed see that suddenly spooked them all? Which reminds us of the WTF-est chart we know of right now – as The Fed’s forecast for GDP collapses, so the odds of a rate hike soar (FF Futs tumble)…...
Adidas increased sales and profit targets on Wednesday, sending shares in the German sportswear firm to a record high as it pledged to keep investing heavily in the key U.S. market and do more to boost e-commerce sales. BNN.ca “We are still in catch-up mode in North America,” Chief Executive Kasper Rorsted told journalists, noting that the United States accounts for a third of global sports wear sales but is the only market where Adidas significantly lags Nike…(Adidas more than doubled its share of the U.S. athletic footwear market to 10% in January, but remained far behind Nike at 45%, according to market data firm NPD)...
Historically when Gold is stronger than Silver, Metals bulls have not made quality buy and hold gains. Historically when Silver is stronger than Gold, both have done pretty well from a buy and hold basis. Below looks at the Gold/Silver ratio since 2008, which reflects a very important price point could be at hand. As mentioned above, when the ratio was low and turned higher back in 2011, that is when Gold, Silver and mining stocks, started heading lower for the next 5-years. This reflects that Gold is stronger than Silver, which historically is when metals struggle to make quality upside gains. The ratio at (3) is testing a 6-year rising sup...
Tomorrow brings the European Central Bank’s March rate decision to markets. No movement on rates is expected, and as has become usual for ECB meetings of recent, the primary drivers will likely emanate from the details and the verbiage offered by Mr. Mario Draghi during the accompanying press conference. The big question is the prospect of QE-taper. Recent European economic data has been encouraging of late, with Euro-Zone GDP growth currently tracking at an annualized 1.7%, and inflation in the month of February printing above the bank’s 2% target. With the ECB’s QE program set to scale-down at the end of March, the bank will be buying...
US companies added workers at a blistering pace in February, according to the ADP Employment Report. Private payrolls increased 298,000, far above the 183,000 consensus forecast via Econoday.com. The gain is the strongest monthly increase in nearly three years. Today’s update also lifted the year-over-year trend in payrolls for the second straight month. If the bullish data is confirmed in Friday’s official jobs report from Washington, the news will further boost confidence for expecting that the Federal Reserve will raise interest rates at next week’s monetary policy meeting. “February proved to be an incredibly strong month for em...
There are three items of note on this fine Wednesday morning. First, let’s remember that the FOMC is meeting next week. And while the market now expects Yellen & Co. to raise the Fed Funds rate target by 0.25%, traders don’t tend to make big commitments in front of important events. Next, billionaire hedge fund manager, David Tepper, was back on CNBC this morning offering up his latest views on the markets. Recall that comments from the once reclusive manager have been known to move markets and that the rally in 2010 after Tepper said stocks were in a win-win situation became known as the “Tepper rally.” This morning Mr. Tepper sa...
Morgan Stanley Adam Jonas noted that Tesla (TSLA) has historically brought in strategic partners at important points in its history to participate in its capital formation – pointing to its prior deals with Daimler (DDAIF), Panasonic (PCRFY) and Toyota (TM) – and he wonders if Tesla, which is targeting higher spending for its launch of the Model 3, may now see another opportunity to explore getting help from new or existing partners to meet its capital needs. However, Jonas noted that he is “not aware of any possible initiatives in this respect.” The analyst, who ascribes a valuation of $233 per share to the core autom...
While the week had its share of action, the two big events are yet to come: the ECB and the NFP. This keeps tension high for EUR/USD traders. Worries about Brexit hurt the pound and the Aussie stabilizes for now. Is the Fed hike already priced in? This is a question that will accompany us for another week. Wrap up of the morning show for March 8th, 2017: Video length: 00:03:51...
Childrens Place Inc. (NASDAQ:PLCE) posted mixed fourth quarter earnings results, but its comparable store sales results were excellent, and its 2017 outlook smashed expectations....