Why The ECB’s Lagarde Is Looking Out The Window But Could Soon Be Rushing For The Door
Today’s ECB conference following its decision to cut rates by 25bp signalled a clear intent to lower rates further. They’re still in restrictive territory, and reaching neutral seems like the next stop – but not necessarily the final one. We think Lagarde’s position on the lookout for economic developments could very well turn into a […]
Dow Nabs Triple-Digit Pop Ahead Of Apple Earnings
Investors spent most of the day digesting a fourth-quarter gross domestic product (GDP) reading that missed expectations, in addition to several megacap earnings reports. The wave of big names announcing quarterly results is far from over, with Apple (AAPL), Intel (INTC), and Visa (V) slated to report after the close. All three indexes marked healthy wins, […]
Economy Slows To A 2.3% Growth Rate In Q4, Consumer Still Strong
We got our first estimate of Q4 GDP this morning. Gross Domestic Product adjusted for inflation (or real GDP) came in at $23.5 trillion in Q4. While nominal GDP came in at $29.7 trillion. The economy is now 12.1% larger than the pre-COVID peak in inflation adjusted dollars. This represents a 2.3% annualized growth rate […]
Old School Cool Again?
As we said in today’s Morning Lineup, IBM (IBM) is giving the market a blast from the past today as shares surged in reaction to earnings. As of this writing, IBM is trading at an all-time high thanks to an impressive 12.76% gain versus yesterday’s close. That is not only the single best performance of […]
Zero Days To Expiration Options
An over-priced market is creating high-stakes betting in the short-term options market.Video Length: 00:13:49More By This Author:Abandon The 60/40 Stocks & Bonds Record Concentration Risk In Stocks U.S. Dollar Hugely Overpriced
Historical Deja Vu: Will 30-Year Treasury Bond Yields Repeat 2007?
Image Source: Pixabay We have repeated several times the importance and implications of rising/falling interest rates.And today we come back to this theme while discussing long-term US treasury bond yields.Above, we share a “monthly” chart of the 30-year treasury bond yield. And, as you can see, we highlight a potential topping pattern set up by a bearish […]
Opposites Attract: The Fed’s Bigger Concern Than Inflation
Image Source: Pexels “Opposites may attract, but I wouldn’t put my money on a relationship of financial opposites.” ~ Suze Orman You hear it all the time.“Opposites attract.”Especially when we talk about relationships.Let’s say your grandchildren are getting married, you get a chance to meet their partner, and then somewhere along the line you realize how […]
Tesla Earnings Breakdown
Tesla (TSLA) reported adjusted EPS of $0.73, which came in below street estimates of $0.77. Tesla has now missed earnings estimates in 5 of the last 8 quarters. Earnings came in 5.2% below street expectations, which was worse than the 8 quarter average of 1%. While the growth rate remained slightly positive for the second […]
IPO Watch 2025: These Two Restaurant Chains May Go Public Next
Image Source: LendingMemon.com via Flickr Twin Peaks – an American chain of sports bars and restaurants goes live on Nasdaq in what is the first restaurant debut of the new year on Thursday.The company’s debut holds significance as it could offer cues on what the initial public offering (IPO) market looks like for restaurant companies in 2025.“Last year was a […]
Government Spending Distorts GDP
Image source: Pixabay “Davidson” submits:Real GDP continues to outpace the underlying Real Private GDP. Government Exp&Inv has grown 4.08% annually since July 2022 while the underlying economy has grown at a 2.78% pace. This has given the Real GDP an inflated pace of 2.98%. Note: I use a simple calculation of annual rate of change over the period […]
