News for the Week of April 23-27

General Markets / Economic

  1. Electric vehicle start-ups are luring seasoned auto executives to help them make sense of the capital-intensive business

  2. Sales of previously owned homes ticked up in March from February, but were below year- earlier levels

  3. He highest oil prices in years are boosting costs and denting earnings at some firms, while proving a boon for energy companies

Company News

  1. EU antitrust authorities opened a full blown prove into Apple’s proposed acquisition of Shazam

  2. First quarter earnings are in, and some companies are stating how these earnings are near high water marks – pushed down shares of large companies like Caterpillar and 3M

  3. I don’t usually post about quarterly earnings, but Twitter reported its second straight profit after starting life as a public company with 16 quarterly losses (that’s 4 years!)

Interesting Stories

  1. I hate traffic – I literally killed my car’s horn TWICE – but this is too much. Kinshasa Congo rolled out traffic robots in recent years to try
    to manage some of the world’s most chaotic intersections. These robots are equipped with red and green lights and moveable arms to direct vehicles

  2. The only thing I know about international basketball is how bad the players were – and that’s only because I remember the original Dream Team from 1992. While international basketball players have improved markedly over time, some are trying to limit the competition. Specifically, South Korea’s pro league is now capping the height of foreign players allowed to play.

Commentary for Week of April 23 - April 27, 2018

by David Abuaf

Stocks had a choppy, mixed week; as Asian and European markets saw gains, US markets declined. Worries about trade policy and a potential business cycle peak trumped the strong earning season, and macro-economically the 10-year US Treasury yield breached 3% and raised fears of a rotation out of stocks into bonds; so of course we saw oil and gold prices fall.

What’s a shade troubling, is just how good the US stock market is – as of 4/27, 53% of S&P 500 companies had reported first quarter results with 79% exceeding earnings expectations and 74% beating sales expectations. FactSet estimated that the S&P 500’s quarterly earnings grew at 23.2%, which is the highest rate since Q3 2010. Outside of stocks, the Commerce Department reported that US GDP rose at an annual rate of 2.3% (likely leading to the higher US Treasury yield), coupled with a slight drop in consumer sentiment – though it is still above historical levels.

Elsewhere, last week we saw existing home sales for March tick up along with manufacturing output rising slightly and jobless claims continuing to fall – currently at the lowest reading since early in the Nixon administration. The bad news about that is the fall in unemployment means the economy is near reaching full employment. What that means to us is a probable increase in interest rates and likely a necessary fast rise in rates!

News for the Week of April 16-20, 2018

News for the Week April 16 – April 20, 2018

 

General Markets / Economic                                                                     

  • Big oil producers said they would limit output for the rest of 2018 and perhaps longer, continuing a pact aimed at lifting prices
  • World demand for oil could be dented by the US China trade dispute, the International Energy Agency said

Company News

  • Amazon and Best Buy are joining forces to sell smart TVs powered by Amazon’s Fire operating system 

Interesting Stories

  • An article in the WSJ noted that surveys are indicated more and more parents are cheating to lose against their children in board games. I find this despicable! Part of being a parent and an adult is knowing ways to win. My child will not beat me in anything until she is able!

 

                  Commentary for Week of April 16 – April 20, 2018, by David Abuaf

            A week that began with many wondering if the market’s correction was finally over ended with an answer: not yet.

            While the week started off well – the S&P 500 gained in each of the first three days, Thursday saw the market selloff due to faster than expected wage growth. Fortunately, it didn’t manage to erase all the gains. Still, it remains clear that the correction that began following the S&P 500’s highs hasn’t run its course. But maybe we shouldn’t have expected it to.

It’s been just 84 days since the index hit its high on January 26. There have been four previous corrections since the start of this bull market. The quickest time it took the S&P 500 to regain its high was 157 days in 2012, according to BTIG data. While that doesn’t mean more downside is ahead, it does mean we could be dealing with the same back and forth a while longer ☹

            “Corrections need time to build a wall of worry back up sufficiently,” explains Julian Emanuel, chief equity strategist at BTIG. It’s worth noting that an ongoing correction isn’t the same as a bear market – and there are few signs it will actually become one, says Brian Belski of BMO Capital Markets.

 

. All opinions presented are those of David Abuaf, and not of Raymond James or Forman Investment Services. All opinions are as of this date and are subject to change without notice.

 

This information is not a complete description of the securities, markets, or developments discussed and has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation.  This information is not intended as a solicitation or an offer to buy or sell any security referred to herein.

 

The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market.  Keep in mind that individuals cannot invest directly in any index. Individual investor's results will vary. Past performance does not guarantee future results. Investing involves risk and you may incur a profit or loss regardless of strategy selected.

 

To opt out of receiving future emails from us, please reply to this email with the word “Unsubscribe” in the subject line. The information contained within this commercial email has been obtained from sources considered reliable, but we do not guarantee the foregoing material is accurate or complete.

 

 

News for the Week of April 9-13, 2018

News for the Week April 9 – April 13, 2018

 

General Markets / Economic                                                                     

1.     A new way to trade bulk agricultural futures is raising concerns that crop and livestock markets are growing less transparent

2.     Banks are finding a backdoor path to subprime customers as loans to nonbank firms hit record levels

3.     The Fed proposed retooling capital rules and annual stress tests for the largest financial firms

4.     Producer prices rose more than expected in March, the latest sign inflation pressures may be building

5.     Oil prices surged to their highest level since 2014 on Mideast tensions

6.     Venture capital investment from Asia is soaring, possibly heralding a shift in power over technological innovation away from the US

 

Company News

1.     The DoJ allowed Bayer’s megadeal to acquire Monsanto after it promised to sell off additional assets

2.     Novartis agreed to buy gene-therapy firm AveXis for $8.7B

3.     PayPal has been offering some customers the option to add basic banking features to their digital wallets

4.     Zillow is getting into the business of buying and flipping homes

5.     Apple said it achieved its goal of powering its facilities worldwide exclusively by renewable energy

 

                  Commentary for Week of April 9 – April 13, 2018, by David Abuaf

            Another week, another reason to wonder: is the correction really over? The market found its footing this week as the S&P 500 gained 2%.

            It was the second time in the past four weeks that the S&P 500 followed a down week with a  gain, and it did so despite concerns that Trump would launch a missile strike against Syrian targets, and after a lackluster response to better than expected earnings from a few big banks!

            Not only did the market weather the news to finish higher on the week, the VIX, a measure of option market volatility, dropped to its lowest level in nearly a month! JJ Kinahan of TD Ameritrade says “volatility is coming off pretty quickly.” Brian Belski of BMO Capital Markets, notes the recent volatility, when averaged on a monthly basis, is close to its average since 1998. “While we do believe that this sort of higher volatility is here to stay, we don’t see it climbing to the extreme levels that typically evolve into more problematic market periods,” he explains.

           

All opinions presented are those of David Abuaf, and not of Raymond James or Forman Investment Services. All opinions are as of this date and are subject to change without notice.

 

This information is not a complete description of the securities, markets, or developments discussed and has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation.  This information is not intended as a solicitation or an offer to buy or sell any security referred to herein.

 

The S&P 500 is an unmanaged index of 500 widely held stocks that is generally considered representative of the U.S. stock market.  Keep in mind that individuals cannot invest directly in any index. Individual investor's results will vary. Past performance does not guarantee future results. Investing involves risk and you may incur a profit or loss regardless of strategy selected.

 

To opt out of receiving future emails from us, please reply to this email with the word “Unsubscribe” in the subject line. The information contained within this commercial email has been obtained from sources considered reliable, but we do not guarantee the foregoing material is accurate or complete.