Early signs of tariff repercussions are appearing. Companies are withdrawing their forward guidance. It is just a matter of time before this reverberates through elevated earnings estimates for both this year and next. All this comes at a time when … Continued
Amid fears of tariffs-induced economic slowdown/contraction and indiscriminate selling of stocks, equity bulls are hoping for signs of stability and a relief rally. It has been 11 quarters since the US economy shrank. The contraction took place in 1Q22, dropping … Continued
Earnings Season is upon us. Fourth-quarter estimates for S&P 500 companies customarily have been gradually revised lower over the past several months. Heading into this, equities rallied huge last week, although the major US indices are off their December highs. … Continued
August’s CPI report dealt a fatal blow to market hopes for a 50-basis-point cut next week. Nevertheless, futures traders are betting that the Fed would lower rates by 250 basis points in the next one year, beginning with 25 basis … Continued
Large-cap bulls are on the rampage. Sell-side analysts are egging them on, as they continue to lower June-quarter earnings estimates for S&P 500 companies. Some sentiment readings look dangerously elevated. Equity bulls are not taking a break. They have been … Continued
The June-quarter earnings season is upon us, and US equity indices increasingly are giving out signs of fatigue. Halfway through, they have already rallied mid- to high-teen percent this year. Digestion of these gains is the path of least resistance … Continued
If Wednesday’s CPI for April cooperates, equity bulls will try to use it to build on last three weeks’ momentum. Major US equity indices have rallied back to just under their all-time highs from March but are giving out signs … Continued
In the latter part of last week, tech delivered, helping the major US equity indices rally big. Two issues could make or mar this week. The FOMC meets, and two more tech behemoths report earnings. The FOMC meets this week, … Continued
The earnings season is upon us. The bar is low. With the S&P 500 sideways in recent weeks after a massive rally since last October, better results can help the index push through short-term resistance, but building on the gains … Continued
It is an FOMC week. The meeting is taking place at a time when markets are demanding aggressive cuts this year and the Fed is saying ‘no way’. Financial conditions have eased tremendously, and the central bank probably does not … Continued