By now, everybody knows the bull argument. In short, stocks are discounting better days ahead for the economy and earnings, less regulation, a “fantastic” stimulus package, and of course, “massive” tax reform. But as I’ve opined a time or two, the key here is that these expectations must at some point turn into reality. I.E. the hoped-for outcome must manifest in the form of corporate earnings that are better than the already elevated expectations. And what happens if this economic reality is delayed, interrupted, or worse? By now, everybody probably knows the answer to this question as well. “Nothing good,” the bears tell us. S...
Trade data headlines show the trade balance significantly worsened from last month. Our analysis paints an improving picture for trade using the rolling averages – however imports grew much more than exports. Analyst Opinion of Trade Data Our monthly analysis using unadjusted data showed surprising growth in both exports and imports. But the data in this series wobbles and the 3-month rolling averages are the best way to look at this series. The 3-month averages are improving. The worsening of the trade balance does not bode well for 1Q2017 GDP. Import goods growth has positive implications historically to the economy – and the...
The best large cap sector is industrials. The top scoring industry is healthcare plans. The average large cap score is 68.21 and the average score over the past four weeks is 69.50. The typical large cap stock in our universe is trading -10.51% below its 52 week high, 4.89% above its 200 dma, has 4.28 days to cover held short, and is expected to grow its EPS by 13.1% in the coming year. The best scoring large cap sectors are industrial goods, technology, healthcare, and financials. Services, utilities, consumer goods, and basic materials score below average. The following are the top and bottom scoring large cap stocks this week. The stronges...
11,550. That’s the last 5% line on the Big Chart that will give us a sign that it’s time to raise our Must Hold levels – raising the trading floor on the markets 10-15% (still TBD) to S&P 2,100ish. That would then become the bottom of our trading range and will influence where we begin to put our CASH!!! to work – at much higher levels. As you can see from the chart, the NYSE (our broadest index and the hardest to manipulate) has been in a very tight range, between 9,500 and 11,000 since late 2013, which is when we drew up the lines on the Big Chart, predicting 11,000 would be fair value for our Must Hold floor by the ...
Founded in 1981, Dimensional Fund Advisor offers investment solutions from different asset classes to institutional and individual investors, investment consultants and financial advisors. Dimensional prides itself in having more than 1,000 investment professionals across 12 offices in North America, Asia and Europe. Dimensional had nearly $460 billion of assets under management as of December 31, 2016. For the past three decades, the company has been providing investment management strategies to its clients. This Texas-based company invests in both domestic and foreign equities, fixed income securities, retirement income funds, real estates ...
Last week, a slew of Federal Reserve officials talked up the likelihood of a rate hike in the meeting next week. Janet Yellen was at pains to stress that the reason for a likely rate hike was that the incoming economic data were as good as or better than Fed models predicted they would be. Now market are putting the odds of a hike next week at 96%, a virtual certainty. But the very fact that Yellen and her compatriots commented on the likelihood of a rate hike at a specific meeting has been the subject of consternation. Why it matters: While markets don’t like surprises, the Fed’s effectively pre-announcing a rate hike doesn’t sit well ...
Dick’s Sporting Goods, Inc. (NYSE:DKS) early Tuesday posted [Mar 7, 2017 | 7:39am] solid fourth quarter earnings results, but its outlook for 2017 was weaker than expected, and investors sold the shares off considerably in morning trading. Written by StockNews.com The Coraopolis, PA-based sporting goods retailer reported adjusted Q4 EPS of $1.32, which was $0.02 better than the Wall Street consensus estimate of $1.30. Revenues rose 10.9% from last year to $2.48 billion, matching analysts’ view. Dick’s noted that consolidated same-store sales rose 5.0% in the latest period, at the higher end of its guidance for a 3% to 6% increase. S...
The volatility in the crude oil market is at a 28-month low but that complacency in the market may be short lived as the International Energy Agency warns of looming oil supply shortages over the next three years. This comes as Exxon Mobil makes a big investment in the coming U.S. oil boom as it plans to invest 20 billion dollars in the Gulf Coast creating 35,000 construction jobs and 12,000 permanent jobs as it seeks to position itself as the U.S. becomes a major oil and gas exporter. These are high paying jobs, many of which will pay more than 100,000 dollars per year. The global energy landscape is changing and the coming oil boom is on it...
There were so many oil stocks on the list this week that I put the cut off at 15 million shares (just for oil stocks) to help filter it down. Cliffs Natural Resources (CLF) Average day range (30) is 5.79% and average volume (30) is 25.3million. Synergy Pharma (SGYP) Average day range (30) is 5.6% and average volume (30) is 6.9 million. Dynegy (DYN) Average day range (30) is 5.42% and average volume (30) is 3.4 million. AK Steel Holdings (AKS) Average day range (30) is 5.39% and average volume (30) is 24.5 million. Oclaro (OCLR) Average day range (30) is 5.38% and average volume (30) is 9.6 million. Community Health Systems (CYH) Average ...