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Economics: The Failure Of The Trump Presidency

Economics: The Failure Of The Trump Presidency

This is a second update on the economy with some thoughts on where we are in the business cycle. Yesterday, in my first update, I talked about monetary policy because of the upcoming Fed meeting in Jackson Hole. This time, I want to talk more about the political economy. I think the headline mostly gets at […]
Look Out: Euro Jumps As Draghi Silent On FX Risk, PMIs Come In Hot

Look Out: Euro Jumps As Draghi Silent On FX Risk, PMIs Come In Hot

Score one for the crowd who thinks that Mario Draghi is going to have a difficult time keeping a lid on euro strength. You’ll recall that there’s considerable debate about whether the ECB chief will use his Jackson Hole speech as an opportunity to try and jawbone the euro lower after the latest ECB minutes flagged “FX […]
Fiat Chrysler Price Target Raised To $19 On Break-Up Potential At Jefferies

Fiat Chrysler Price Target Raised To $19 On Break-Up Potential At Jefferies

  Jefferies analyst Philippe Houchois raised his price target on Fiat Chrysler to $19 from $14 citing his view of the increased probability of changes to the group’s structure given that China’s Great Wall and FCA “seem to be sizing each other up” and the idea of an independent Maserati/Alfa-Romeo is “growing on” him. Given […]
Breadth Still Not Great

Breadth Still Not Great

The S&P 500 re-took its 50-day moving average yesterday, but unfortunately, it did so without more than half of its index members closing above their 50-days as well. As shown below, only 48% of stocks in the S&P are currently above their 50-day moving averages. Bulls would like to see a much stronger reading than […]
Stocks Slide After Trump Threatens Government Shutdown Over Wall Funding, Killing NAFTA

Stocks Slide After Trump Threatens Government Shutdown Over Wall Funding, Killing NAFTA

Yesterday, when stocks surged at the market open following Politico’s report that Trump is unexpectedly “making strides” on tax reform, we warned that “it can all be wiped away as soon as tonight, when Trump will deliver a speech to his “base”, in which he may promptly burn any of the goodwill he created with capital markets […]
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                        Buffett Is Loading Up On BNY Mellon: Here’s Why

EC Buffett Is Loading Up On BNY Mellon: Here’s Why

The Bank of New York Mellon Corporation (BK) has been a holding in Warren Buffett’s investment portfolio since the third quarter of 2010. Why is this important? Well, Warren Buffett is arguably the best investor ever. He has grown his company, Berkshire Hathaway (BRK-A) (BRK-B), to a ~$444 billion market capitalization through years of sound business […]
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                        India’s Economy Bounces Back From Demonetization Shock

E India’s Economy Bounces Back From Demonetization Shock

India’s economy was hit by a major shock in November 2016 when the government of Prime Minister Narendra Modi, without advance notice, withdrew all 500 and 1000 rupee notes from circulation. Those denominations accounted for some 86 percent of all currency in circulation. The “demonetization,” as it has been called, was intended to undercut the […]
Morning Call For Wednesday, August 23

Morning Call For Wednesday, August 23

OVERNIGHT MARKETS AND NEWS Sep E-mini S&Ps (ESU17 -0.23%) this morning are down -0.25% after President Trump last night at a rally in Arizona threatened to shut down the government over the Mexico border wall. The issue over funding for a border wall may become entangled with legislation to raise the federal government’s debt limit, […]
Lowe’s (LOW) Misses On Q2 Earnings & Sales, Stock Declines

Lowe’s (LOW) Misses On Q2 Earnings & Sales, Stock Declines

Lowe’s Companies Inc. (LOW – Free Report) , one of the largest home improvement retailers, came out with second-quarter fiscal 2017 results, wherein adjusted earnings of $1.57 per share missed the Zacks Consensus Estimate of $1.62 but jumped 14.6% year over year. Management expects earnings in the range of $4.20 to $4.30 per share for fiscal 2017. Earnings […]