Robert Barone Published 6:25 PM EDT Apr 9, 2019 More: Get a 3-month subscription to RGJ.com for just $5! Click for details. There were several recent market moving reports, including some positive data on U.S. and Chinese manufacturing. But the biggest news was the seemingly positive March employment data which sent equity markets up, as the initial take on the headline Establishment Survey data (nonfarm payroll employment up 196,000) fit the narrative that the soft economic patch is now passing and a recession will be avoided. Because it doesn’t fit the narrative, there has been no recognition that employment is a coincident/lagging indicator, which means that it really doesn’t say anything about the future. The two employment reports are contradictory There are many issues with the employment report. The most glaring to me is the fact that, for the third month in a row, the two employment survey headline numbers (the Establishment Survey and Household … [Read more...] about Equity market appears to be moving to the sound of its own drummer
Dell Technologies Inc. made its re-entry to the public markets Friday, five years after its eponymous founder and a big private-equity firm took it private in the biggest-ever technology leveraged buyout. The personal-computer maker and data-storage company eschewed a traditional initial public offering to relist its shares. Instead it opted for a complex $24 billion cash-and-equity deal where it bought out the shareholders of a pre-existing stock—known by its ticker DVMT—that tracked Dell’s interest in software-maker VMware... … [Read more...] about Dell Returns to Public Equity Markets
By David RandallNEW YORK (Reuters) - Robust corporate results helped world stock markets surge on Wednesday, bringing some relief to jittery investors after a brutal October sank equities with one of their worst drops since the financial crisis 10 years ago. Strong earnings reports in the United States and Europe spurred a broad rally, despite data showing that China's factory growth slowed to its lowest in two years. Investors rushed into the U.S. dollar, sending it to a 16-month high while the offshore Chinese yuan languished at a 22-month low. The MSCI world equity index, which tracks shares in 47 countries, rose nearly 1.5 percent, but remains down 7.4 percent in October, its biggest monthly decline since 2012. The index has dropped approximately 11.5 percent from all-time highs hit in January. The recovery in global stocks, including gains overnight on Wall Street, pushed Treasury yields higher. Benchmark 10-year notes last fell 9/32 in price to yield 3.1416 percent, from 3.109 … [Read more...] about Robust earnings boost equity markets after brutal month
Alex Longley and Tsuyoshi Inajima, Bloomberg 5:39 am CDT, Thursday, October 25, 2018 A pumpjack operates on an oil well in the Permian Basin near Orla, Texas, on March 2, 2018. A pumpjack operates on an oil well in the Permian Basin near Orla, Texas, on March 2, 2018. Photo: Bloomberg Photo By Daniel Acker. Photo: Bloomberg Photo By Daniel Acker. Image 1 of / 1 Caption Close Image 1 of 1 A pumpjack operates on an oil well in the Permian Basin near Orla, Texas, on March 2, 2018. A pumpjack operates on an oil well in the Permian Basin near Orla, Texas, on March 2, 2018. Photo: Bloomberg Photo By Daniel Acker. Oil steadies near two-month low as equity markets rout eases 1 / 1 Back to Gallery Oil steadied near the lowest … [Read more...] about Oil steadies near two-month low as equity markets rout eases
Global Equities Correcting. U.S. and Global equities are correcting and realigning. They are only correcting some of their upside gains, which is totally normal and essential if the current business cycle is going to be extended one or more years into the future, which I believe to be the case. Equity Correction Beneficiaries. There are always multiple reasons for market price action, but at least to-date some grains, cotton, and other commodity markets have been beneficiaries of the ongoing global equity price weakness. First, if global equity price weakness were defining a trend change from bullish to bearish in the equity sector, money may aggressively leave equities and move into commodities for a period and generate some significant price upside in one or more commodities or the sector in general. This does happen when hard assets, like equities and commodities, are in a topping process. I do not believe this to be the case, but many market participants believe global … [Read more...] about Grains and cotton beneficiaries of global equity market weakness, will it last?