Posts by Mike Verity

Stocks are volatile in early trading in the wake of a key inflation report (see below). At the moment, the Dow is down 260 points and the S&P 500 is down .5%. The VIX Index sagged below 20, suggesting little actual fear among traders. In recent days the US dollar rebounded and bonds sold off.…

Stocks opened mixed this morning (Dow +100 points; SPX flat; Nasdaq -.9%). The VIX Index, which gauges fear among investors, rose to 21 from 18 this month. But while expected volatility may be rising, the VIX is nowhere near its 2022 average. Bonds continue to sell off as interest rates creep higher. Bankrate’s average 30-year…

The stock market is up an astounding 7% so far this year as sentiment improves and investors look forward to two likely catalysts this year: disinflation and the end of Federal Reserve rate hikes. But of course we’re not out of the woods quite yet with regard to market volatility. This morning stocks gapped up…

Where is this recession we keep hearing about? For the past year, many economists and investment strategists said it was right around the corner. But its shadow has crept steadily backward. US economic growth slowed to 2.1% last year following an abnormal surge of more than 5% in 2021. But we haven’t yet seen a…

Major stock market indices sank this morning following Microsoft’s earnings announcement (see below). Currently, the Dow is down 200 points and the S&P 500 is down .85%. The tech-heavy Nasdaq is faring worse, down 1.2%. Commodities are mostly lower as well except for WTI crude oil, hovering around $80/barrel. The bond market is mixed, with…

Earnings season has kicked into high gear. Netflix (NFLX) reported mixed fourth quarter results yesterday and yet the stock is up about 7% this morning. Revenue growth slowed to just 2% y/y, and earnings per share plunged 90%. That sounds a bit shocking, but it shouldn’t. After all, the stock plunged 76% from November 2021…

Wholesale inflation slowed more than expected in December, and November’s gain was revised lower. The Producer Price Index (PPI) decelerated sharply from a year-over-year rate of 7.3% to 6.2%. Underlying inflation—excluding the more volatile categories of food & energy—slowed to a 4.6% rate. I mention this because it is now abundantly clear to investors—if not…

Major stock market averages opened slightly higher this morning, but quickly lost momentum. Currently, the Dow is down 385 points, the S&P 500 is down .16% and the Nasdaq is flat. And yet, the VIX Index remains below 20, suggesting no panic among traders. And it’s true that so far this year, the stock market…

Stocks opened higher today amid signs that inflation is falling (see below). The Dow is up 300 points and the S&P 500 is up .6%. Beat-down tech and communications sectors are up about 1%, and energy stocks are up 2% in early trading. Commodities and bonds are also broadly higher. With every passing day, it…

The stock market rallied this morning, building on Friday’s gains. Currently, the Dow is up 130 points and the S&P 500 is up 1%. Investors are expressing some hope that the Fed can begin to relax its aggressive approach to fighting inflation. Bonds are rallying as well, pushing yields lower in tandem with interest rate…