Image Source: UnsplashMARKETSU.S. stocks continued their upward march on Friday afternoon, positioning for robust weekly gains as Wall Street’s confidence in a jumbo Fed rate cut gathered steam overnight. In a sharp reversal, traders who had nearly written off the possibility of a significant pivot by the Federal Reserve following recent inflation and jobs data are now rallying around the idea of a 50-basis-point cut. The odds of such a move have surged to 49%, up from just 15% the previous day.This spike in expectations came after The Wall Street Journal’s Fed insider, Nick Timiraos, hinted that the size of the Fed’s September 1...
Image Source: PixabayWith the Fed’s call on 25 basis points or 50 basis points coming next week, how concerned is the stock market?Video Length: 00:27:27More By This Author:Is It Time To Dump Stocks?Why The Bulls Have An Edge Over The BearsAre The Charts Starting To Drift From The Soft-Landing Script?...
Image Source: PixabayThe Zacks Research Daily presents the best research output of our analyst team. Today’s Research Daily features new research reports on 16 major stocks, including Verizon Communications Inc. (VZ), Prologis, Inc. (PLD), and Medtronic plc (MDT), as well as a micro-cap stock Crimson Wine Group, Ltd. (CWGL). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.You can see all of today’s research reports here ...
Image Source: PexelsStocks continued their upward drift today, as complacency in the largesse of the Fed to Wall Street continues to build.Gold and silver continued their breakout, moving higher.The VIX fell.The Dollar fell.Clearly indications to lower rates amid a slowing economy and lower inflationary pressures.I took a trip out west of here this morning to Amish country. On they way there I stopped at a Costco for gasoline (2.91) and at the entrance there was a display advertising their gold bars for sale. No surge pricing here.So as I tuck into some wonderful bakery and prepared foods for the weekend, let’s give thanks for favo...
Image Source: UnsplashAn event-full week (US CPI, US PPI, Presidential debate, ECB rate decision, and WSJ Fed whispers) left stocks, bonds, gold, crypto, and crude all higher in price, while the dollar was clubbed like a baby seal.Soft survey data continues to rebound higher (full of hope) while hard data – most notably labor market-related – has been significantly lagging expectations…Source: Bloomberg…which, along with comments from The Wall Street Journal’s Fed-Whisperer (NikiLeaks) on discussions about a 50bps cut next week, sent rate-cut expectations higher on the week (despite plenty of chop around the h...
Do you know who has been missing from the most recent gold bull run?The Chinese.And yet, we’re still seeing gold push to record highs.What happens when the Chinese jump back into the market with both feet? Another Record Gold set another new record on Thursday as investors drool over the prospect of an interest rate cut next week. The gold price climbed by about 1.8 percent, peaking at around $2,559 per ounce. By early Friday morning, the yellow metal was up nearly $8 at $2,577.Investors shrugged off a small uptick in core CPI last month and a larger-than-expected increase in producer prices, anticipating that the Federal Reserve is goin...
Image Source: Pixabay The negative outlook remains, RSI and MACD suggest bearish momentum. The multiple rejections by the 20-day SMA suggest that the buyer’s traction is too weak. A break from above mentioned average would improve the outlook. In Friday’s session, the EUR/GBP pair fell slightly by 0.15% to 0.8435, showcasing a negative technical outlook. Bears continue to drive the pair lower, reinforcing the overall bearish trend while buyers continue to struggle to conquer the 20-day Simple Moving Average..The Relative Strength Index (RSI) is currently at 44, within negative territory, with a mildly declining slope, signifying weak...
Image Source: UnsplashBoeing (BA) is bleeding cash, yet offered a reasonable deal including a commitment to build the next plane in Seattle. The union walked out.Boeing Workers Go on StrikeThe Wall Street Journal reports Boeing Union Goes on Strike, Halting 737 Production Boeing’s (BA) biggest labor union went on strike, halting production of its bestselling jets and dealing the latest blow to the struggling aerospace giant. Thousands of machinists who build Boeing’s 737, 777 and 767 jets walked off the job shortly after midnight Pacific time Friday, after rejecting a labor deal struck between the union’s leaders and Boeing’s execut...
Image Source: PixabayThis week, the market was informed about the latest development in US inflation. Although the somewhat higher core rate did not really meet the market’s wishes, it continues to dream of massive interest rate cuts by the Fed. While the Fed rate is still at 5.5%, the US Treasury with a term of over two years already indicates a market yield of just above 3.5%. One wonders whether the market is not too optimistic about interest rates…The oil price (Brent crude) has a very high correlation with inflation expectations. In fact, the falling oil price indicates that inflation will continue to fall. So far so good...
Image Source: PixabayLinked here is a detailed quantitative analysis of Cardinal Health, Inc. (CAH). Below are some highlights from the above linked analysis: Company Description: Cardinal Health Inc. is one of the leading wholesale distributors of pharmaceuticals, medical/surgical supplies and related products to a broad range of health care customers. Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description: 1. Avg. High Yield Price 2. 20-Year DCF Price 3. Avg. P/E Price 4. Graham Number CAH is trading ...