There is so much more to the stock market rally than actions taken by central banks. There is no doubt that a part of the low (and especially negative) yields scenario is to get funds to seek returns, which means greater risk in stocks, resulting in higher share prices, which is in turn is supposed to trigger that so-called wealth effect.
It wasnt pretty and it certainly lacked a bang, considering the news backdrop might have been appropriate; the Dow Jones Industrial Average finished at a new all-time high for the sixth consecutive session in a row and that hasnt happened since 1998.
Things are fairly quiet as the S&P and Dow trade near record highs. Positive bias remains with the major indexes up slightly.
I came into Wednesday's session looking for action from transportation, and got it when CSX Corporation (CSX) inadvertently released results before the closing bell. Earnings came in at $0.47, down year-over- year; beating Wall Street consensus by $0.03.
The market was poised to move higher but crude inventories declined less than expected, so now stocks are marking time.
The S&P 500 has raced to a new all-time high and other major indices are on the cusp. Many have been caught flat-footed by this move, and others have ridiculed it.
Wednesday saw a nice reversal in the price of stocks and oil as the market reacted to several news items beginning with the Institute of Supply Management (ISM) service numbers (much-better-than-expected) and later the release of the Federal Open Market Committee (FOMC) minutes.
Bond yields continue to plunge and gold is soaring, reflecting the perfect storm of anxiety and a lot of unanswered questions.
Everyone talks about that Lehman Moment for the stock market, but the fact of the matter is the stock market exhibited amazing resolve or ignorance (pick your poison) throughout, and even after, the Lehman soap opera played out.
The market had meandered all week long, and while it was off the bottom of trading range, it clearly was looking for a catalyst. Instead of waiting for the outcome of the British EU exit vote, investors jumped the gun, especially late in the session.
The housing market, at least on paper, has come all the way back as median prices increased 4.7% in May from April to $239,700.
Oil was lower for the sixth day in a row with growing concerns over Britain leaving the EU. Brent crude, a global benchmark, has fallen 9% in the last 5 session and trading around $47.50.
Last year, the market stalled; the IPO market dried up, and the economy crawled along as the Gross Domestic Product (GDP) edged lower with a sense of pessimism hanging in the air.
People are becoming more afraid and the thing about fear is that once unleashed, it can feed on itself. "Fear begets fear" is often seen as a contrarian indicator in sync with the notion that the crowd is always wrong and the emotionally-driven crowd is always extremely wrong.
The headlines were all over the place; depending on whom you believe, the market sold off on Friday regarding concerns over the so-called Brexit, global growth worries, or overbought conditions. I suspect that you could also check the box marked all the above.
Consumers have put the chill on credit card usage in April after a monstrous surge in March. Still, the pace of credit card usage is increasing and swiftly heading back to all-time high levels.
Each year, Boston Consulting Group (BCG) releases its in-depth report on high-net-worth individuals around the world; while its a piece that leaves money managers and others salivating, there are not-so-subtle messages on the economy that go well beyond generating commission checks.
Yesterday, the market finished the day higher even as its clear that Janet Yellen is wedded to the idea of rate hikes this year; maybe even in July or September.
Initial claims for the week ending May 28 fell to 267,000, a decline of 1,000 but lower than the expectation of 270,000. This marks 65 consecutive weeks that the initial claims have been below 300,000. The 4 week moving average, a better gauge was down 1,750 to 276,750.
The market limped out of May, but brought lingering concerns that include the overarching question on the true state of the economy, which has seen monster numbers in home sales and now consumer spending.