Chart 1 plots dividend yield for the 10 S&P 500 sectors. The data is as of 2Q16, hence financials still include real estate, which last month became a sector within its own right. The chart also includes buyback yield for … Continued
Crude oil sits at a critical juncture. Depending on which way it breaks probably decides stocks’ path of least resistance near term. Last week, OPEC announced its commitment to cutting output to between 32.5 million barrels per day and 33 … Continued
The following are futures positions of non-commercials as of September 27, 2016. 10-year note: Once again, Mario Draghi, ECB chief, urged Eurozone governments to complement central-bank action. He was speaking before the European parliament on Monday. Mr. Draghi said there … Continued
Four and counting! That is the number of consecutive quarters S&P 500 companies have spent in dividends and buybacks more than they took in operating earnings. In 2Q16, these companies earned $222.8 billion out of operations, and doled out $98.3 … Continued
During the August 31-September 15 period, the Nasdaq composite rallied 0.7 percent – quite an achievement considering that at the lows on September 12 it was down as much as 2.2 percent. The tech-heavy index’s performance was also in contrast … Continued
This could very well be setting up like a tug of war between favorable seasonals and elevated multiples, with possible retest of make-or-break 2120 on the S&P 500 large cap index. Going back to 2009 when the bull market erupted, … Continued
The following are futures positions of non-commercials as of September 20, 2016. 10-year note: A steeper yield curve is typically associated with a strengthening economy. So when the Bank of Japan says it will target a steeper yield curve, what … Continued
The 3Q16 earnings season is upon us … will begin in earnest in about three weeks. As of September 16th, S&P 500 companies are expected to earn $29.41 out of operations (courtesy of S&P Dow Jones Indices). This compares with … Continued
In July’s Treasury International Capital System data released last Friday, there was one particular data point equity bulls were probably happy to see. Global investors purchased $26.1 billion in U.S. equities in that month. This was the highest monthly purchase … Continued
As of last Friday, only 32.6 percent of S&P 500 stocks were above 50-day moving average, earlier having dropped to 29.8 percent on Wednesday. This compares to 22 percent on June 27 (orange arrow in Chart 1) when the S&P … Continued