Posts by Mike Verity

Approaching the end of the quarter with solid gains for all major stock market indexes, momentum seems to be holding. Investor sentiment is strong, as is the fear of missing out. And the rally has clearly broadening out beyond the handful of top tech & internet stocks that dominated last year. About 70% of the…

Stocks opened mixed this morning as traders parse fresh data on the economy (see below). The rally in place since Halloween seems to be losing some momentum and many investors think we could see a minor correction in the near-term. Optimism is prevalent judging by the VIX Index and AAII Investor Sentiment Bullish survey, and…

Stocks opened lower this morning and I’ve heard several theories to explain it. First, the market can’t keep going up in a straight line. The last time we had a measly 5% correction was October, and since Halloween major stock market averages are up about 20%. Second, economic growth and inflation have been a bit…

We’re seeing broad-based gains across asset classes this morning. Stocks opened modestly higher (S&P 500 +.1%). Bonds are in rally mode due to lower inflation and interest rate expectations. Commodities are also rising across the board. Data from the Bureau of Economic Analysis (BEA) shows consumer incomes are growing faster than expected even as spending…

Both stocks and bonds opened higher this morning after falling more than 1% in yesterday’s session. A hotter-than-expected inflation report has traders reconsidering their exuberance (see below). Inflation picked up a bit more than expected last month according to the Bureau of Labor Statistics (BLS). The Consumer Price Index (CPI) rose .3% in January from…

The bond market opened higher this morning in reaction to a New York Federal Reserve report on rising credit card delinquencies (see below). Long-term Treasury bonds are up about .8%, intermediate corporates are up .5% and even short-term bond funds are up about .2% in early trading. Bonds are clearly leading the parade, dragging all…

The US economy managed to grow 3.3% during the fourth quarter compared to 4.9% growth in the third quarter. Clearly economic activity slowed a bit toward the end of the year, but remains far more robust than most economists and investors anticipated. Remember, 2% annual growth is considered healthy. In addition, the report’s inflation gauge…

The Dow and S&P 500 opened sharply higher this morning after some upbeat earnings announcements from Netflix, Elevance and General Dynamics (see below). Stocks have fully recovered from their early January swoon and are now making fresh highs. On the other hand, bond prices have reset lower to start the year. It seems traders (yet…

Stocks opened higher this morning, with the S&P 500 very close to its 2022 all-time high. The Nasdaq 100 just touched a new record high. This move not only defies traders’ expectations but it is also defying the bond market. Today bonds are selling off as interest rates move higher and that’s usually enough to…