The Job market is fighting the Fed
Hiring slowed sharply in August but remained sturdy as employers added 315,000 jobs despite softer consumer spending gains, rising interest rates and a sputtering economy. The unemployment rate rose from 3.5% to 3.7%. In his speech at an annual symposium in Jackson...
What the Fed wants, the Fed gets
Chairman Jerome Powell, in highly anticipated remarks from the annual Jackson Hole policy meeting, said in no uncertain terms that interest rates will keep rising and aren't likely to come down soon. But that's where the certainty ended. The size of a September rate...
Only the Fed can derail this stock market rally
The week started positively with the stock market continuing its rally despite retailers warning of slowdown, semiconductor companies cautioning on outlook and housing market cracking as expected. But, the resilience of the stock market rally was broken by comments...
Peak Inflation could signal the beginning of another bull market
July’s CPI (Consumer Price Index) reading of 8.5%, a significant drop from June’s number of 9.1% coupled with surge in consumer confidence injected euphoria into the markets. With first signs of decline in inflation, the Fed must rethink its quantitative tightening...
The Fed wants the economy to slow down but the economy refuses to do so
Stocks finished strong after a surprising jobs report. The U.S. economy added 528,000 jobs in July, the Labor Department reported, more than twice as high as expected, and the unemployment rate ticked down to 3.5%, matching the lowest level since the late 1960s. Wage...
We are in a recession but does Wall Street care?
So is it a recession or not? Gross domestic product fell at a 0.9% annualized rate in the second quarter after a 1.6% decline in the first three months of the year. This means that the US economy shrank for a second straight quarter, which technically means a...
Markets are flipping between gloom and glee
Despite weak results from the tech sector, the S&P 500 Index and Dow Jones Industrial Average posted their biggest weekly gain in a month, while the Nasdaq notched its largest advance since July 8. But, the economy is putting out mixed vibes. One day, an indicator...
The Silver Lining – Dividend Payouts hit New Record
Stocks finished sharply higher on Friday, snapping a five-day losing streak thanks in part to stronger than expected retail sales data and a moderation in inflation expectations. But Friday's rally still was not enough to overcome three days of selling earlier in the...
Predicting the end of the bear market
The Jobs report released on Friday showed that the U.S. economy added a stronger than expected 372,000 jobs in June, and the unemployment rate held steady at a healthy 3.6%, giving the Fed no reason to deviate from its plan for aggressive rate hikes. Investors may...