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ECB Preview: Another Rate Cut Without New Forward Guidance

ECB Preview: Another Rate Cut Without New Forward Guidance

Image Source: PixabayWith the latest inflation data out of the eurozone, a rate cut at next week’s European Central Bank meeting has almost become a done deal. As current headline inflation is closing in on 2% and longer-term inflation forecasts remain stable at around 2%, the ECB has enough reasons to further reduce the level of monetary policy […]
Dividend Histories Help

Dividend Histories Help

Image Source: PexelsIn yesterday’s Chart of the Day, we discussed how rotational this month’s declines have been. Additionally, there is one other factor at play. In the chart below, we’ve performed a decile analysis of the Russell 1,000 to see how stocks have done this month based on their dividend yields. The stocks in the deciles to the left of […]
Sector ETFs Set To Explode As Fed Rate Cut Bets Gain Steam

Sector ETFs Set To Explode As Fed Rate Cut Bets Gain Steam

Image Source: PixabayThe latest data on job openings renewed concerns over the economy’s health, bolstering expectations of a supersized rate cut from the Fed this month. Traders are now pricing in a nearly 50% chance of the Federal Reserve slashing interest rates by 50 bps by the end of its September meeting, up from a 38% […]
Small Businesses Reducing Workers For The Last Four Months

Small Businesses Reducing Workers For The Last Four Months

Image Source: UnsplashADP data shows small businesses with 1-49 workers have been reducing workers for four months. Those with 20-49 workers have shed workers for 7 straight months.The ADP Employment Report shows the economy added 99,000 jobs in August. That is a considerable slowdown.Importantly, a breakdown of jobs by firm size shows small businesses have shed jobs for […]
Gold Price Breaks $2,500 As Traders Ramp Up Fed Rate Cut Hopes

Gold Price Breaks $2,500 As Traders Ramp Up Fed Rate Cut Hopes

Image Source: Pixabay Gold rises above $2,500, peaking at $2,523 before profit-taking ahead of key US economic data. Traders price in over 104 bps of Fed easing, expecting rate cuts to maintain labor market stability. Falling US Treasury yields and a weaker US Dollar support further upside in Gold prices. Gold prices rallied sharply during the […]
Going Cashless: Benefits And Costs

Going Cashless: Benefits And Costs

Image Source: PexelsThere was a time, not all that long ago, when the primary options for making everyday payments were cash and checks. Those times are past. Julian Morris and Ben Sperry discuss the tradeoffs and consequences in “The Cost of Payments: A Review,” (International Center for Law & Economics Working Paper, August 28, 2024). They begin […]
Jobless Claims: All Good News

Jobless Claims: All Good News

Image Source: PexelsThe weekly news from jobless claims continues to be good. The hypotheses that the summer increase was unresolved post-pandemic seasonality, plus the several week spike post-Beryl was all about Texas, both have held up very well. And that has continued to be the case against more challenging YoY comparisons as the data heads into […]
U.S. Stocks Tumble As Jobs Data Signals Economic Slowdown

U.S. Stocks Tumble As Jobs Data Signals Economic Slowdown

Image Source: PixabayWall Street stumbled Thursday as new employment data pointed to a cooling labor market, stoking fears of an economic slowdown. The latest ADP National Employment Report showed private sector job growth falling short of expectations, sending major indices into negative territory. ADP Data Shows that the US job Market is Slowing, with 90k Jobs […]
US Dollar Declines On Mixed US Data

US Dollar Declines On Mixed US Data

Image Source: Pixabay US Dollar weakened on Thursday after mixed US economic data. S&P Global Services PMI and ISM Services PMI showed expansion in the service sector. Labor data showed some signs of weaknesses. On Thursday, the US Dollar Index (DXY), a measure of the USD against a basket of six currencies experienced volatility following the release of […]
Dow Jones Industrial Average Stumbles On Thursday 
                    
 

Dow Jones Industrial Average Stumbles On Thursday  

Image Source: Pixabay The Dow Jones backslid 400 points on Thursday as economic concerns persist. Investors are growing increasingly worried about a recession as hiring slows. Friday’s NFP jobs data dump looms over the horizon as investors begin to stress. The Dow Jones Industrial Average (DJIA) ground 400 points lower on Thursday, shedding weight for the […]