Posts by Mike Shu
World Assesses New Covid Variant
European stocks rallied in the overnight session, surprising just about everyone who was expecting the emerging Covid Omicron variant to keep investors in a sour mood. The Eurostoxx 600 Index climbed .8%, giving US markets permission to recover some ground lost last week. At the moment, the Dow is up 327 points and the S&P…
Read MoreGrowth vs. Inflation
Major stock market averages fell at the open (Dow -225 pts; SPX -.5%). Financials and consumer discretionary sectors are down more than 1% in early trading. The more traditionally defensive sectors—consumer staples, utilities, real estate—are holding on to modest gains. Commodities are mixed today. Oil is falling back a bit to $/barrel. Copper is down…
Read MoreMonetary vs. Fiscal Stimulus
Stock and bond markets are reacting to yesterday’s Fed announcement (see below). At the moment, the Dow is down 95 points, and the S&P 500 is up .2%. Technology, consumer discretionary and industrial sectors are in rally mode whereas banks, utilities and real estate are falling back. Interest rates (and bond yields) fell, pushing bond…
Read MoreWaiting On The Fed
Major stock market averages opened modestly lower this morning (Dow -120 pts; SPX -.1%). Banks, biotechs, retailers and commodity stocks are rising, whereas utilities & transports are in the red. If there is any pattern in that move, it speaks to investors expecting higher interest rates down the road. The VIX fear gauge is unchanged…
Read MoreEarnings Boost Stock Market
Stocks opened higher this morning, following on several days of modest gains. At the moment, the Dow is up 91 points and the S&P 500 is up .28%. Earnings surprises are the main reason for resumption of the market rally after a tough September. The VIX fear gauge sagged to 16 and gold is down…
Read MoreDon’t Cry For Me, Argentina
Major stock market averages opened mixed today (Dow +68 pts; SPX flat; Nasdaq -.1%). The financial news media are crying crocodile tears over earnings announcements by Amazon and Apple (see below). Both companies, however, are bravely singing “Don’t cry for me, Argentina.” Amazon (AMZN) reported third quarter sales and profits below analysts’ consensus projections, and…
Read MoreMicrosoft (MSFT) Steals the Show
Stocks opened a bit lower this morning despite some good earnings announcements. At the moment, the Dow is down 110 points, and the S&P 500 is flat. Technology, communications and consumer discretionary sectors are holding onto gains, but most everything else is lower. Earnings season has been positive overall, but one of the main themes…
Read MoreEarnings Season to the Rescue
Major stock market averages opened higher this morning, but quickly faded. At the moment, the Dow is up 17 points and the S&P 500 is up .13%. Most of the stock-specific moves are a reaction to earnings announcements (see below). Gold and copper are slipping. Crude oil is up a bit to trade around $84.50/barrel.…
Read MoreInvestors Bought the Dip. Now What?
Stocks opened slightly lower this morning (Dow -120 pts; SPX -.4%). It’s as if, having fully recovered from September’s -6% correction, the stock market is at a loss for what to do next. Over the past 30 days the VIX fear gauge has fallen to 16 from 25. Gold is about even with where is…
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