Citing estimates from JPMorgan, over the weekend Bloomberg wrote that courtesy of a Biden administration terrified of what soaring inflation will mean for the Democrats in the midterms, and a Fed that is determine to do anything – even crash the market and spark a recession – to do Joe Biden’s “kill inflation” bidding, the US faces a new scary threat: a plunge in wealth which JPM estimates at least $5 trillion, and could reach $9 trillion by year-end…
Big-Tech Bloodbath Continues After Biggest Sell-Program in History…
After yesterday’s ugliness in big-tech and small-caps, many hoped for a bounce today. But the combination of ARKK gamma and CTA deleveraging meant the pain was not over and both Nasdaq and Russell 2000 plunged into the cash market open (after getting hit as the Asia open and European open)…
“Way to Go Joe!” – Bonds Bid As Biden Tax Plan Tanks Stocks…
A Bloomberg report suggesting Biden will pay for some of his “infrastructure” bill by doubling the capital gains tax for high income Americans sparked some brief unrest in US equity markets today…Nasdaq was the hardest hit on the day but we note that Small Caps were sold most after the Biden headline…
S&P Erases 2020 Losses As Stocks Soar…
The S&P 500 on Monday erased its losses for the year, surpassing its closing level for 2019 as investors bet on a robust economic recovery from the coronavirus pandemic. The S&P 500 closed up 38.5 points, or 1.2 percent, at 3,232. That was 17 points higher than its close on New Year’s Eve. The Dow […]
Dow, S&P and Nasdaq Score Biggest Gains Ever as Stocks Make Comeback…
U.S. equity markets surged Monday as Wall Street rebounded from its worst week since the financial crisis and has President Trump and U.S. health officials made more progress in developing a plan to combat the coronavirus. The Dow Jones Industrial Average rose over 1,294 points or 5 percent in what is the biggest point gain […]
Nasdaq and S&P Soar to Record Highs as Impeachment Ends in Acquittal…
There should be a way to make sure President Donald Trump is acquitted every day. Major stock market indexes were up sharply on Wednesday as the Senate prepared to vote to acquit the president of the two charges brought against him by a narrowly partisan vote in the House of Representatives. It was the third […]
Weak 2019 Earnings Growth Paves the Way for Strong 2020 Earnings Picture, Boosting Stocks…
Earnings in 2019 are setting a low bar to clear in 2020, paving the way for stocks to continue their record-setting rally, according to Wall Street strategists. Third-quarter earnings are slated to see a 2.4% drop from last year’s third quarter, according to DataTrek Research. The first and second quarter saw 0.4% declines in earnings […]
Dow, S&P 500, Nasdaq Hit New Records…
U.S. stocks traded higher on Wednesday lifting the Dow Jones Industrials, the S&P 500 and the Nasdaq to new records as financial markets closed early for the July 4th holiday. President Trump celebrated the milestone tweeting a “congratulations!” noting the 19 percent annual gain for the broadest measure of stocks. Investors are now betting on […]
The Wolves Have Turned on Each Other on Wall Street…
Some decades back, the late MIT economist Lester Thurow wrote this: “Essentially, the economic problem is like that of the wolf and the caribou. If the wolves eat all the caribou, the wolves also vanish.” What Thurow did not take into consideration is that if the wolf pack is large enough, it can survive for […]