The rally continues…US Stock futures rose while bond yields fell after signs of a labor-market slowdown bolstered speculation the Fed will hold policy rates steady through year-end. With the strong finish in equities to the week, in fact the best of 2023 thus far and the strongest weekly performance since November 2022. I can’t help but point out how squeezy it feels, specifically Goldman’s most shorted basket GSCBMSAL Index (+4.42%), while the most shorted baskets in Europe outperformed, the M…

US stocks were flying today as key headwinds faded. The S&P 500 continues to rebound off the October lows and was up for the fourth day in a row, posting the fifth best up day this year. Many traders saw Powell’s comments from yesterday as dovish; driving long term US treasury yields and the dollar lower. The US 10Y and US 30Y are now down 35bps and 30bps respectively over the past two weeks. All S&P sectors were up on the day, with banks one of the noticeable outperformers after Bill Gross st…

According to some statisticians, there is a 100% chance November will be an up month after the three past down months. And if this week is any indication, investors can expect that prognostication to prove accurate into year end. The SPX gained +1% today to start November, which makes +2.9% this week thus far, despite some rough earnings and mixed data. Investors were focused mostly on The Fed, which was a non-event, as JP duly delivered an unchanged target Funds rate. It was noted by analysts…

According to some statisticians, there is a 100% chance November will be an up month after the three past down months. And if this week is any indication, investors can expect that prognostication to prove accurate into year end. The SPX gained +1% today to start November, which makes +2.9% this week thus far, despite some rough earnings and mixed data. Investors were focused mostly on The Fed, which was a non-event, as JP duly delivered an unchanged target Funds rate. It was noted by analysts…

It’s scary, isn’t it? October is now complete and both equity indexes and Treasuries have posted more losses. While it is the third consecutive month for the broader indexes, it is the sixth for the 10-year yield, and investors are hoping that November will change those directions. As the 10-year hovers just below 5% (4.91% last), traders brace for another FOMC meeting and its potential to move sentiment. There is currently no expectation for any rate movement tomorrow, but economic data contin…

After a beautiful weekend in NYC that didn’t align with the calendar, Mother Nature it seems has recognized her mistake and quickly dropped the temperature back to ‘normal’ this week. Turning the clocks back next weekend will add to the autumnal feel as we depart work into the darkness. Things have been dark of late for equities, but today’s session felt like we turned back the clock, impressive gains seen throughout on volumes that were respectable at least. With the S&P having lost ground 8 o…

As the curtain closed on a week chock full of underwhelming earnings and lowered guidance, indices continued their descent with the S&P posting an 82% down day today. An in-line PCE report offered early encouragement with core PCE lower MoM though robust consumer spending suggests no significant slowdown in GDP growth, reinforcing the prospect of sticky inflation (3-4%) through next year and sending equities further into the red. 146 S&P 500 companies reported this week, and today more than two…

When futures are indicated lower and the tape wobbly throughout the trading session, it makes navigating through earnings trickier than normal, the margin for error is so fine, there is no room for mishap on any metric. A slide in big tech sent the stock market to its lowest since May after another round of disappointing earnings. The S&P 500 dropped 1.2%, edging closer to a “correction” — with the index down almost 10% from its July peak, while the Nasdaq 100 sank nearly 2%. With that said, ra…

The problem with being magnificent is that it can become difficult to live up to those standards, and Alphabet found that out today. Lighter than expected cloud growth was enough to drop the stock from its lofty altitude, as it nursed its biggest loss (-9.6%) since the Covid days of March 2020. Microsoft (+3.1%) did beat in cloud, but it was not enough to provide enough of a lift for the broader markets. Investors are in the thick of earnings currently, and according to Bloomberg, Q3 earnings g…

Yields continued to be a focus for traders throughout today’s session as they once again remained volatile. Shorter term US treasury rates jumped in the morning after S&P Global PMI data beat across the board, holding in expansion territory. All 3 components (Manufacturing, Services and Composite) increased when compared to September’s data, helping to reassure investors that the US economy is still growing. Despite a brief rise in rates, equity performance was strong after five consecutive day…