Major equity indices essentially went sideways last week, and interest rates firmed up. August fared very well in job creation, and this probably puts the FOMC under pressure to tighten monetary policy, provided of course this Friday’s CPI report plays … Continued
Prospects for higher short rates are kind of taking a toll on equity indices that until recently were pricing in monetary easing this year. The elevated investor optimism has taken a hit but is nowhere near done in the big … Continued
Small-caps get no love. They have not for a while. Unlike its large-cap peers that keep making new highs, the Russell 2000 remains substantially below its November 2021 high. The index ceased to respond to solid jobs picture as early … Continued
Job openings are at record highs. Of its dual mandate of maximum employment and price stability, the Fed is singlehandedly focused on the former, being oblivious to rising consumer prices. If these openings get gradually filled, resulting in continued upward … Continued
Job openings are at record highs. If past is prelude, this leads to job creation. This time around, thanks to stimulus money, Americans do not seem desperate for jobs – unless wages rise enough to tempt them back into the … Continued
Job openings – both non-farm and NFIB – are at new highs. But this optimism is not getting translated into other aspects, such as capex plans. Last Friday’s jobs report was a huge letdown. Versus expectations of a million new … Continued
The 10-year T-yield is itching to move lower – at least near term – if nothing else just to unwind its overbought condition. This could have implications for tech shares and gold, among others. The 10-year treasury yield is beginning … Continued
The recovery in the economy from recent lows has been uneven. In equities, the S&P 500 (large cap) rallied to a new high last Friday, while the Russell 2000 (small cap) was rejected at a crucial resistance. Amidst this, several … Continued
There is a divergence in progress in the U.S. job market. Historically, non-farm job creation and openings move in tandem. They are currently going their separate ways. In December, non-farm job openings fell 364,000 month-over-month to 6.42 million. They have … Continued
Up 3.3 percent at one time, the S&P 500 ended January down 0.2 percent. ‘As January goes, so goes the year’ adage is not fail-safe but worth paying attention to. Not the least because the index rallied nearly 29 percent … Continued