With Big Gains In Stocks, Major Tech Companies On Schedule To Report 4Q23 Earnings, FOMC Likely To Disappoint Equity Bulls

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

Combination Of Higher Prices And Lower Earnings Pushes Up Multiples, Turning Equity Bulls With Tons Of Paper Profit Into Jitttery Bunch

posted in: Economy, Equities, Technicals | 0

Since last October’s bottom in stocks, trillions in additional wealth have been added. Prices headed north, even as earnings headed south, helping push up multiples. This also makes equity bulls, who are sitting on loads of paper profit, jittery, as … Continued

Amidst Elevated Investor Optimism And Expensive Multiples, S&P 500, Nasdaq 100, and Russell 2000 Denied At Crucial Resistance

posted in: Equities, Technicals | 0

After a rip-roaring rally since last October’s bottom, major US indices stopped at what could turn out to be make-or-break resistance. Sentiment is not frothy but elevated enough to cause unwinding, and multiples have only expanded since the end of … Continued

As 1Q23 Earnings Season Ends, Large-Caps Fare Better Than Mid- To Small-Caps, Which Not Necessarily Is Good

posted in: Economy, Equities | 0

March-quarter earnings, which are on the home stretch, are raising questions – most prominently as to where the sell-side says things are headed and where they might in fact be headed. As of last Tuesday, 89.4 percent of S&P 500 … Continued

Lagging Small-Caps’ Unpromising Message For ’23 Economic Outlook; Large-Caps’ Recent Outperformance Blue-Sky

posted in: Credit, Economy, Equities, Technicals | 0

Small-caps are lagging. With a large domestic exposure, these companies offer a reliable way to take a pulse of the economy. Rates have gone up a lot and will rise even more. A recession is imminent next year. Large-caps’ recent … Continued

Earnings Season Set To Begin This Week – Post-Earnings Reaction Key, With Large-Cap Multiples Increasingly Set To Act As Headwind

posted in: Economy, Equities | 0

The 3Q earnings season begins in earnest this week. Leading up to this, the revision trend is up and stocks have come under a little pressure. Post-earnings reaction likely gets influenced by several variables, not the least of which is … Continued

Markets Likely To Be On Pins And Needles Until Fri, When Powell Speaks At Jackson Hole

posted in: Economy, Equities, Technicals | 0

Major US equity indices were down last week, but recovered from the lows, as dips were bought at important support. Jerome Powell’s Friday speech at Jackson Hole this week is important in that a possible announcement of tapering of bond … Continued