Dow closes above 23,000 for first time; IBM soars

IBM had a really good day, up 9 percent on a really good Q3 report, and that gave the Dow a super good day, up 160, of which 90 is credited to IBM.  With this steaming bull market, hesitant retail investors are pouring back in, balancing out the $33 billion that has been pulled out of stocks just in Q3.  Since the S&P and Nasdaq were positive, they were also at new records.  Investors await the White House decision about the next Fed chair.  The market wants Yellen to stay, Trump does not.  We’ll see who wins.  As has been the trend lately, volume was on the light side with 5.6 billion as investors await more Q3.

Dow pierces 23,000 but finishes below milestone

Because of continuing strong Q3 reports, today from UnitedHealth and J&J, the Dow inched up another 40 and closed within a breath of 23,000.  Once it does, it will be the fourth landmark this year.  The health sector did better on the news of a bipartisan deal to reinstate the bulk of Obamacare subsidies.  IBM was up on a good Q3 and Goldman Sachs down even though it had a good Q3.  Volume remains below average at 5.5 billion as investors wait for more good Q3 to justify the high valuations.

Wall St. inches up with financials; earnings in focus

Still another day of all three indexes reaching new record highs with the Dow ratcheting up another 85 points, now just 43 points shy of 23,000.  Q3 reporting is underway with financials doing well … ditto for Netflix and Apple.  Healthcare fell almost ½% due to the scrapped subsidies.  Investors will be looking closely at Q3 results to see if they can justify this extended bull market.  Volume was below average at 5.5 billion.   

Succinct Summation of Week’s Events 10.13.17 (plus the flip side of FAANG)

Below please find the usual weekly summation, the positives being yet another week of new all-time records and drop in jobless claims, the negative being retails sales being a tad below expectations.  On the Ritholtz Sunday reading list is this New York Times article that offers a different perspective on the whole FAANG phenomenon.  FAANG is the acronym that has been used of late in the financial news to describe the coalition of tech companies – Facebook, Amazon, Apple, Netflix, and Google, which together make up a rather disproportionately large percentage of the market.  The article offers the point of view that maybe FAANG is not doing investors or the economy at large such a great service after all.  Have a great week.  

Saving Twitter, Big Bets, and Catching Hackers

Friday the 13th had to come in October this year.  It's not that often that it comes in the Season of the Witch and, in that spirit, Barry Ritholtz has offered several freaky titles for our consideration including an analysis of Vanguard success from Bloomberg, an IBD expose on the hidden story behind wages paid to Walmart employees and, for those who really want to lurk in the dark shadows, there is a tale of Israeli espionage and how it lead to the discovery of the Russian hacking.  Enjoy the rainy weekend.  

Wall St. ends up after economic data; S&P up for a fifth week

The end of week 2 Q4, and week 1 of Q3 reporting, had all the indexes seeing new gains, the Dow and the S&P both seeing their 5^th straight week of gains, all on positive economic data demonstrating continuing market strength and the VIX remaining historically low at 9.6.  Bank of America came in above forecast, Wells Fargo below forecast, consumer prices up and the healthcare sector taking a hit over Trump’s latest executive order.  Volume was close to recent averages at 5.8 billion.

Wall Street slips as banks fall after results, AT&T sinks

Thu 10-12-17

It is the beginning of Q3 reporting and today the indexes retreated from recent records with the Dow down 31 points and AT&T was the reason, with a loss of 60,000 video customers during Q3 due to cord cutting.  Oddly, though investors have been awaiting Q3 reporting to find out if the bulls would keep running, both JPMorgan Chase and Citigroup fell despite the fact that their reports exceeded forecasts.  S&P Q3 earnings forecasts are now at 4.4%, down from 5.5% last week.  6 billion shares changed hands, which was in line with recent averages.

Wall Street ticks higher to record close; eyes on earnings, Fed

There were records set again yesterday so with nothing but positive numbers again today, it was another one for the books.  The Dow is 42 points higher attributed to a lot of sector rotation with investors moving to defensive stocks.  There’s also talk of Trump replacing Yellen, and the good news that the likely candidate will be close to her in philosophy.  However, as has been stated repeatedly, the market likes the status quo, wants Yellen to continue, and is likely to react negatively to any replacement, which is good enough reason to leave it alone.  The 5.6 billion share volume is still below average as the markets await Q3 reporting, due to begin tomorrow.

Wal-Mart rally pushes Dow to all-time high

I completely forgot about Columbus Day yesterday, which may have been part of the reason why trading was so light at 4.4 billion shares, though since only banks are closed I’m not sure why this would impact trading.  And it may not have since today’s volume was not much better at 5.6 billion.  Nonetheless, with another 69 points notched on its belt, the Dow saw another record today due mostly to Walmart forecasting a 40% increase in online sales next year.  Oil also got a boost from Saudi export cuts and OPEC continuing talk of rebalancing after years of oversupply.  The market seems to be shrugging off all the negatives, the only fear being the fear of missing out.  We’ll see.

Wall Street recedes from highs as quarterly reports loom

After so many records being set last week the market took a breather today with not much action and volume at a very anemic 4.4 billion.  Modest gains in tech were offset by a drop in healthcare leaving the Dow down 12, the Nasdaq down 10 and the S&P down 4.  The S&P is now expected to have earnings increased by 4.8 percent in Q3 but that’s a downgrade from 5.5 percent last week.  Everyone everywhere seemed to be feeling the downward pressure today, the most likely sentiment being that investors are on the fence until they see some Q3 results.

Succinct Summation of Week’s Events 10.6.17 (plus the other side of deficits)

The ever so popular weekly summation is once again below for your review.  The economic data was mostly positive with the obvious negative being the massacre in Las Vegas and payrolls being down, mostly attributed to the fact that 1-1/2 million people did not show up for work in September due to the hurricanes.  It was more difficult than usual this weekend to find a Sunday bonus but I think this article from Thursday's New York Times may qualify as it is an excellent explanation of deficits and why they're not necessarily a bad thing.  I got this same lecture in my first econ class in the MBA at the University of Southern California in 1979 and I can see that the basic principles remain unchanged.

Change in Inflation-Adjusted Incomes Since 1999

For your viewing pleasure on this wet weekend, I offer this informative graphic from Barry Ritholtz's weekend reading list showing the significant rise in incomes at all levels since 1999, and the particularly sharp rise in all levels since 2014.  This has been true whether we're talking the top 5% or the bottom 20, and everything in between.  I also offer an intriguing article about where the majority of the world's billionaires come from.  It may be a good reason to open an account at UBS.  The link to the 16-page article is attached below the opening paragraph.  Enjoy what will likely be the last balmy weekend of this year.

S&P 500 breaks record run on jobs data, drug chain drop

A very quiet day of trading with the Dow creeping down 50, then back up 50 to close almost even, breaking its six-day run of records though the Nasdaq hit its 9^th straight record.  Today’s driver was a down jobs report, a loss of 33,000 attributed to displaced workers from the hurricanes and thus considered temporary.  However, wages rose more than expected and the VIX, after hitting a record low yesterday, rebounded sharply today.  Volume was again below average at 5.7 billion, probably just a sign that most investors are awaiting Q3 results.

S&P 500 sets sixth record high close on tax overhaul optimism

Today the House Republicans passed a procedural measure allowing them to more easily circumvent the Democrats in passing tax reform.  The market reacted to this with great enthusiasm pushing the Dow up another 113 points.  All three indexes gained making for a sixth consecutive record for the S&P, which hasn’t happened since ’97.  The VIX was also at a record low of 9.19.  There was an array of other positive reports but suffice it to say that this is the fourth consecutive day of records for all three indexes.  So it’s a little puzzling why the forecast for Q3 earnings was lowered today to 5.3 percent from yesterday’s 5.5 percent.  Volume was also below average at 5.9 billion.

Wall St. extends run of record highs; services data upbeat

With the indexes at all time record highs yesterday and all three being up again a few more points today, this is yet another all-time record as more positive data concerning the all important services sector flows in expanding at its fastest pace in 12 years.  At 5.8 billion, volume is still a bit subdued as investors await Q3 and the hoped for earnings growth of 5.5 percent, which would put Q2 and Q3 at double-digits, to justify the high valuations and keep the bulls running.  Manufacturing, considered a close second to services in terms of importance to economic growth, was reported yesterday to be expanding at a 13-1/2 year high.

Major indexes hit record highs second day; autos, airlines jump

For the second day of Q3 the market is again stimulated by the combo of strong data and hopes for tax reform, push all three indexes again to new highs.  The Dow is up 84 (for a combined two-day total of +258!), the Nasdaq up another 15, the S&P 5.  Automakers got a boost from a rush to replace flood-damaged cars and Q3 earnings are looking very favorable with an expect 5.5% growth.  Still, investors will be looking toward a good Q3 to determine if the bull market remains sustainable.  Volume was below average at 5.9 billion.

Wall Street starts quarter higher; data signals strength

A terrific Q3 gave the market a big boost for the first trading day of Q4.  Optimism about tax reform contributed but strong data, particularly from the services and manufacturing sectors, were the real drivers.  Investors are certainly optimistic about the future and willing to believe there’s something good coming.  All three indexes are again at new record highs, the Dow gaining 152, the Nasdaq 20, the S&P 9.  The Grim Reaper was even in the mix with gun stocks being way up in the wake of Las Vegas.  The 6.3 billion share volume was in line with the averages.

Succinct Summations for Week Ending 9.29.17 (plus political reading preferences)

The usual Sunday night summation for the week is below with the positive being all the indexes again reaching new all-time highs, Q3 GDP rising to 3.1 percent, corporate profits rising to 7.4 percent.  The negatives include home sales down a bit and jobless claims up a bit.  I always find it very interesting to read about analyses of political preferences and this Sunday's bonus is a terrific graphic illustrating the different reading preferences from right to center to left.  The point is that the books that are enjoyed by both the right and the left are few, but these titles are also there.  Enjoy, and hope everyone had a great weekend.  Warmer temps coming.