Amidst a Backdrop of Other Developments, Powell’s Comments Spark a Good Week for Equities

in Weekend Alpha

Ordinarily, many investors would have been focused on the retail sector this week. If we consider Thanksgiving to be the official beginning to the holiday shopping season, this year saw a strong opening. Adobe Analytics reported record-breaking Thanksgiving Day online sales ($5.29 billion, up 2.9% YoY) and strong Black Friday sales as well ($9.12 billion, up 2.3% from 2021.) Electronics, …

Markets Down for The Week on Tough Talk From Fed But Bounce on Friday

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“Whenever you find yourself on the side of the majority, it is time to pause and reflect.”- Mark Twain There’s a lot of complex jargon and intimidating math associated with markets, as there should be. When someone’s managing many billions of dollars, obviously you’re going to attempt to get the A-team on it and to have as much quantitative justification …

Markets Shrug Off Disappointment After Red Wave Fails to Materialize, Climb on Decelerated Inflation Numbers

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We saw three major influences on the markets this week: the midterm elections, the weeklong drama around the collapse of cryptocurrency exchange FTX, and Thursday’s inflation-data releases. Ultimately, the market ended the week strongly. The SPX was up 5.88% for the week, the Nasdaq rose 7.78%, and Treasury yields fell, with the 10-year ending the week at 3.82%, down from …

Markets Rally Friday After Mixed Jobs Numbers, But Down on The Week After Hawkish FOMC Press Conference Prompt Rate Fears

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Markets were down for the week after Wednesday’s FOMC meeting poured cold water on dovish hopes but rallied on Friday after mixed jobs data. Chairman Powell said that it was “premature” to consider a pause. Also, the Chairman specified he would prefer to overtighten, though he did not think they had done so yet, rather than take the pressure off …

Market Has Strong Rally Despite Tech Earnings, Apple Holds The Line

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Markets had their fourth consecutive weekly gain and showed stunning resilience in the face of headwinds. Markets rallied very strongly and closed at the highs of the day and the VIX went to the 25 handle. The Dow is on track for its strongest monthly performance since Gerald Ford’s presidency. The great debate on the Street is whether this is …

Markets Rally on Hopes for Fed Pause, Earnings Have Been Mixed

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Markets had their best day since June in a furious rally that was led by Materials, Financials and Technology. This was the third positive week in a row, and the first three-week winning stretch all year. A Wall Street Journal article by Nick Timiraos renewed hopes that the Fed would back-off from its Old Testament approach to fighting inflation. Our …

Markets Have Wild Ride After Hot CPI Report

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Well, that was a truly hectic week in markets. If you don’t like the direction prices are going, just wait a few minutes. The CPI came in hot. It was up 8.2% on a YoY basis and 0.4% for the month, which was above the 0.3% estimate. The report was ugly. Core inflation showed unexpected strength and went up 0.6% …

Few Bulls Standing Amidst Rising Market Volatility

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Good Evening, There is an adage on Wall Street: Markets take the staircase up, and the elevator down. This week, however, markets got excited and took the elevator both ways in a rollercoaster tape for the stock market. The major averages took a unanimous tumble this week, with both the DOW and S&P 500 ending down -2.91% and the NASDAQ …

All Eyes on Powell as Markets Struggle Amidst August CPI Report

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Good Evening, Markets had a treacherous week following the hotter-than-expected August CPI print, with major indexes posting their worst weekly performances in months. Following Tuesday’s CPI release, the Nasdaq 100 went completely “no-bid”, all 30 stocks in the DJIA declined, as did all 11 sectors in the S&P 500. Yields propelled higher with the 2Y yield rising to 3.86% and …