Last week, the S&P 500 as well as the Nasdaq 100 started out strong but finished poorly. The Russell 2000, on the other hand, stayed strong, closing near the week’s high. Before one interprets this as markets’ way of telling … Continued
US corporate profits collapsed 21 percent in the first half this year. Directionally, this is in line with operating earnings estimates for S&P 500 companies. In the latter’s case, the revision trend has improved the past two and a half … Continued
The longest bull market in U.S. stock market history abruptly came to an end last month. Between March 9, 2009 and February 19, 2020 – that is, 131 months – the S&P 500 large cap index rallied 401 percent, second … Continued
From trade disputes to declining corporate profits to yield-curve inversion, there is no shortage of issues for worrywarts to worry about. From recent highs, major US equity indices have dropped in the mid- to high-single digits. Medium term, more downside … Continued
The 1Q19 earnings season is upon us. Expected growth has softened. The bar is low. The sell-side expects growth to pick up speed in the second half. Operating earnings of S&P 500 companies are expected to grow 9.1 percent this … Continued
Thanks to last year’s tax cuts, corporate taxes have seen a big drop, with a wide gap between what corporations make and what they pay in taxes. While this gives them more money to spend on dividends and buybacks, this … Continued
On a 12-month rolling total basis, federal deficit in August shot up to just under $900 billion. This at a time when the US economy is in expansion. In all probability, the red ink only gets worse from here. The … Continued
US corporate profits rose to a new high in 2Q18, but prior quarters were revised lower by $739 billion. Second-quarter US corporate profits were published Wednesday. Profits adjusted for inventory valuation and capital consumption rose 7.7 percent year-over-year to a … Continued
US small-caps are outperforming. Price action is great. But large-caps are not on the same page. And high-yield corporate bonds have diverged with small-caps for a while now. In early 2016 when US stocks reached a major low, several other … Continued
The tech-heavy Nasdaq 100 index is doing very well so far this year – up 22.4 percent. This compares with a rise of 10.3 percent for the Dow Industrials, 10.1 percent for the S&P 500 large cap index, and a … Continued