Saturday , October 23 2021
Home / Tag Archives: Earnings

Tag Archives: Earnings

Greenback Starts Big Week Softer

Overview:  The price action in the foreign exchange and bond markets has been consistent with the risk-off narrative, spurred arguably by the surge in Delta mutation of the virus.  However, equity markets were less consistent with it.  Last week's weakness in the MSCI Asia Pacific Index seemed to be partly driven by Beijing's crackdown on some tech companies and private sector education companies.  The benchmark fell by 1.9% last week and continued to be sold today, led by Hong Kong's 4%+...

Read More »

Weekly Market Pulse: Buy The Dip, If You Can

If you were waiting for a correction in stock prices to put some money to work, you got your chance last week. The Dow Jones Industrial Average was down nearly 1000 points at the low Monday and closed down 725, a loss of a little over 2%. The S&P 500 did a little better but closed down 1.5%. It looked like the beginning of a beautiful correction, one for which we were way overdue. The reason everyone gave for the selloff was fear of the Delta variant, of which new cases and...

Read More »

No Inflation In These Payrolls

Payrolls for the month of June were a mixed bag, in that the payroll data was better than expected at the same time nothing else was. After a couple months of ho-hum gains for the Establishment Survey, government hiring (mostly) boosted the latest monthly figure to +853,000. This brings the 6-month average up to +543,000, which is either really good and pointing to a reopening economy or not nearly enough because it doesn’t point to anything more than a reopening economy.Right away,...

Read More »

US CPI to Surge, but is it All Base Effect?

Overview:  The US raised $207 bln yesterday by selling bills and coupons with little fanfare.  The bid-cover on the three-year and 10-year sales were a little softer than at the last auctions. Today, the US will sell $24 bln 30-year bonds, a few hours after news that is expected to show that CPI accelerated to its highest level since early last year.   At around 2.35%, the 30-year yield is at the lower end of the range seen over the past several weeks. The 10-year yield is near 1.69%, a...

Read More »

Weighing the Week Ahead: The Elusive Logic of Mr. Market

We have a very light economic calendar, and the earnings season is winding down. The punditry loves these opportunities. Rather than dealing with data, the field is open for speculation! This has already begun. Even before results were known, every news source was speculating about events and the apparently strange behavior of financial markets. Craving simple and consistent explanations, pundits are on a quest, asking What is the elusive logic of Mr. Market? In my last installment of...

Read More »

Weighing the Week Ahead: Do Not Be Seduced by Analogies

We have a huge economic calendar, including all of the major reports. Of special interest is employment, with the official BLS data on Friday and the ADP private payrolls on Wednesday. ISM manufacturing will lead off the week with ISM services soon following. Oh. There is also an election and a raft of earnings reports. There will be much more clarity for investors in a few days. Meanwhile, everything you see or read offers a prediction. I do not mind a careful, data-based forecast that...

Read More »

Weighing the Week Ahead: Will Strong Earnings Confirm an Economic Rebound?

We have a light economic calendar with a focus on housing. There are continuing political and pandemic stories that could dominate the news cycle at any time. For those focused on financial markets, earnings season might provide answers to important questions. We will all be asking: Will earnings signal a strong economic rebound? In my last installment of WTWA, I asked whether the President’s COVID diagnosis should cause investors to change course. There were some reader complaints that...

Read More »

26/8/20: Q2 2020 Corporate Earnings and Revenues

Factset latest data on STOXX600 earnings for 2Q 2020 is dire: In basic terms, earnings figures managed to beat estimates only because analysts' expectations of earnings drop off were even more gloomy than the already dismal outrun. Year-on-year revenues growth was also bad:Notably, sharper declines in earnings compared to revenues implies little gains in terms of any productivity or efficiencies during the pandemic response. 

Read More »

Eugene Fama’s Efficient View of Stimulus Porn

The key word in the whole thing is “bias.” For a very long time, people working in and around the finance industry have sought to gain tremendous advantages. No explanation for the motive is required. Charts, waves, technical (sounding) analysis and so on. To many dispassionate observers there was always this sort of improper religious fervor to it rather than honest science. The first major figure who had sought to change all that was the unfortunate Louis Bachelier. While Eugene Fama has...

Read More »

Intel Reports Factors Operating With > 90% On-Time Deliveries

Intel reported AH and is trading down over 5 percent on weaker than expected margin guidance, or whatever you want to assign to the price noise. The outlook, at least to us, for the semis and the electronics industry, in general, is unclear, the electronics segment has benefited from the outbreak because of a surge in buying by both consumers and businesses in electronics equipment uncertainty about the pandemic, the recovery, and the sustainability of demand, it’s unclear if the...

Read More »