Economic News

The Nasdaq is on track to exit a bear market --- and the Dow to leave correction territory --- after July CPI reading

The Nasdaq is on track to exit a bear market — and the Dow to leave correction territory — after July CPI reading

The Nasdaq Composite was on track to exit a brutal bear market Wednesday, while the Dow Jones Industrial Average was set to end a market correction, as stocks rallied in the wake of a cooler July inflation reading. The Nasdaq Composite COMP, +2.55% was up 2.5% near 12,810 in midday trade. According to Dow Jones …

The Nasdaq is on track to exit a bear market — and the Dow to leave correction territory — after July CPI reading Read More »

Don't be fooled by a drop in U.S. headline inflation. Markets will be attuned to another figure on Wednesday.

Don’t be fooled by a drop in U.S. headline inflation. Markets will be attuned to another figure on Wednesday.

Traders, investors and economists are all counting on Wednesday’s consumer-price index report to show a decline in the annual headline U.S. inflation rate for July. But there’s another figure buried in the consumer-price index data that has the propensity to jolt markets. It’s called the core year-over-year CPI reading, a measure which strips out volatile …

Don’t be fooled by a drop in U.S. headline inflation. Markets will be attuned to another figure on Wednesday. Read More »

The red flag that preceded a halving of global equities in 2000 and 2007 is back, warns Citi

The red flag that preceded a halving of global equities in 2000 and 2007 is back, warns Citi

We are a day away from data that could prove a turning point for markets. If Wednesday’s CPI doesn’t reveal some slowing in prices, expectations will rise for a bigger Fed rate hike in September, possibly knocking stocks. But if it swings the other way, especially after surprisingly good jobs data, the view that things …

The red flag that preceded a halving of global equities in 2000 and 2007 is back, warns Citi Read More »

JP Morgan quant who called summer rebound in stocks says rally could continue even if corporate profits decline

JP Morgan quant who called summer rebound in stocks says rally could continue even if corporate profits decline

Investors worried about the next pullback for stocks might want to pause and consider this: the decline in equity valuations since the start of the year already has exceeded the average pullback of other recessionary periods since the early 1990s, according to JPMorgan Chase & Co.’s equity quant Marko Kolanovic. While more Wall Street analysts …

JP Morgan quant who called summer rebound in stocks says rally could continue even if corporate profits decline Read More »

Will the stock-market rally turn into a selloff? This bond-market gauge could tip investors off

Will the stock-market rally turn into a selloff? This bond-market gauge could tip investors off

Now that the Federal Reserve appears to have abandoned its forward guidance tool in favor of being “data dependent” to help inform its future path for rates, investors should keep an eye on this gauge of inflation expectations for signs of a shift in the market’s mood. Watch the five-year break-even inflation rate, one of …

Will the stock-market rally turn into a selloff? This bond-market gauge could tip investors off Read More »

AMD, PayPal, Starbucks, Uber, Paramount, and Other Stocks for Investors to Watch This Week

AMD, PayPal, Starbucks, Uber, Paramount, and Other Stocks to Watch This Week

It’s the peak stretch of second-quarter earnings season, with roughly 150 S&P 500 firms scheduled to report this week. The highlights on the economic calendar will be a pair of purchasing managers’ index readings and jobs Friday. Wednesday’s earnings highlights will be Booking Holdings , CVS Health , eBay , and Moderna . Thursday will …

AMD, PayPal, Starbucks, Uber, Paramount, and Other Stocks to Watch This Week Read More »

AMD, PayPal, Starbucks, Uber, Paramount, and Other Stocks for Investors to Watch This Week

AMD, PayPal, Starbucks, Uber, Paramount, and Other Stocks for Investors to Watch This Week

It’s the peak stretch of second-quarter earnings season, with roughly 150 S&P 500 firms scheduled to report this week. The highlights on the economic calendar will be a pair of purchasing managers’ index readings and jobs Friday. Wednesday’s earnings highlights will be Booking Holdings , CVS Health , eBay , and Moderna . Thursday will …

AMD, PayPal, Starbucks, Uber, Paramount, and Other Stocks for Investors to Watch This Week Read More »

‘Savings are gonna run out’: Already battered by high inflation, Fed’s rate hike will hit lower-income and rural Americans hard

‘Savings are gonna run out’: Already battered by high inflation, Fed’s rate hike will hit lower-income and rural Americans hard

The Federal Reserve hiked its benchmark rate by 0.75 percentage points on Wednesday in an effort to temper the rising costs of consumer goods and services.  While economists say raising the interest rate will help cool consumer demand and hopefully ease record-high inflation, it will also raise the cost of borrowing for everything from houses …

‘Savings are gonna run out’: Already battered by high inflation, Fed’s rate hike will hit lower-income and rural Americans hard Read More »