Description: It could be a bad day for the markets once the yield on the benchmark10-year Treasury hits 3 percent, closely followed trader Art Cashin told CNBC on Thursday. Source: CNBC.com – video report Date: Feb 22, 2018 Link: https://www.cnbc.com/2018/02/22/art-cashin-once-the-10-year-yield-hits-3-percent-all-hell-could-break-loose.html Questions for discussion: What is the significance of 10-year treasuries hitting 3%, according to Art Cashin?… Read more »
Monthly Archives: February 2018
Walmart’s e-commerce growth wanes, sending shares tumbling
Description: Walmart on Tuesday reported earnings that missed analysts’ expectations for the holiday period as its e-commerce operations cooled off, overshadowing the fact that same-store sales and revenue surpassed forecasts. Source: CNBC.com – video report Date: Feb 20, 2018 Link: https://www.cnbc.com/2018/02/20/walmart-q4-2017-earnings.html Questions for discussion: What does the report say about the reason for Walmart’s stock drop?… Read more »
Head of world’s largest hedge fund says U.S. in a ‘pre-bubble phase’ with a 70% chance of recession
Description: Bridgewater’s Ray Dalio says he sees risk of recession by 2020 Source: MarketWatch.com Date: Feb 22, 2018 Link: https://www.marketwatch.com/story/bridgewaters-ray-dalio-says-us-in-a-pre-bubble-phase-with-a-70-change-of-recession-2018-02-22 Questions for discussion: What is the basis for his concerns? Do you agree? How should investors react to his prediction?
Goldman says options-market activity suggests pain ahead in these sectors
Description: The cost of hedging against downside risk is up substantially for Amazon, Citigroup, and health-care stocks Source: MarketWatch.com Date: Feb 22, 2018 Link: https://www.marketwatch.com/story/goldman-says-options-market-activity-suggests-pain-ahead-in-these-sectors-2018-02-22 Questions for discussion: How are options used as indicators? What is the technical basis for the predictions? Do you agree with the predictions?
U.S. Blocks a Chinese Deal Amid Rising Tensions Over Technology
Description: HONG KONG — United States officials have torpedoed a Chinese state-backed group’s plan to buy an American electronics company, signaling the Trump administration’s continuing skepticism toward Chinese investment deals, particularly those that involve transferring technological know-how. Source: NYTimes.com Date: Feb 23, 2018 Link: https://www.nytimes.com/2018/02/23/technology/china-microchips-cfius-xcerra.html?rref=collection%2Fsectioncollection%2Ftechnology&action=click&contentCollection=technology®ion=rank&module=package&version=highlights&contentPlacement=2&pgtype=sectionfront Questions for discussion: What does this report suggest about the… Read more »
Rising inflation not enough to rattle stocks, says Bessemer’s…
Description: Rebecca Patterson, chief investment officer at Bessemer Trust, discusses the broader market and rising interest rates with Brian Sullivan. Rising inflation not enough to rattle stocks, says Bessemer’s Rebecca Patterson from CNBC. Source: CNBC.com – video report Date: Feb 15, 2018 Link: https://www.cnbc.com/video/2018/02/14/rising-inflation-not-enough-to-rattle-stocks-says-bessemers-rebecca-patterson.html Questions for discussion: What is Rebecca Patterson saying about inflation concerns… Read more »
Inflation is not running away on the upside: CIO
Description: Steve Massocca, Wedbush Securities managing director, and Jerry Castellini, CastleArk Management president and CIO, discuss the effect of the recent period of volatility alongside current inflation and rising rate fears on the markets. Inflation is not running away on the upside: CIO from CNBC. Source: CNBC.com – video report Date: Feb 15, 2018 Link:… Read more »
Three Gauges Show Prices Rising in U.S. Production Pipeline
Description: Three measures of price pressures for American businesses showed they’re facing higher production costs, adding to evidence that inflation is creeping up in the U.S. economy. Source: Bloomberg.com Date: Feb 15, 2018 Link: https://www.bloomberg.com/news/articles/2018-02-15/empire-state-factory-gauges-show-upward-pressure-on-prices Questions for discussion: What are inflationary indicators suggesting, according to the report? How might regulators and investors respond to these developments?
Brace for another nose-dive for stocks — and welcome it
Description: There are some doubts that equities can just sail on upward from here, end of story. Among them is our call of the day, which comes from CFRA’s chief investment strategist Sam Stovall, who says the S&P 500 “will likely have to retest its recent low.” Source: MarketWatch.com Date: Feb 15, 2018 Link: https://www.marketwatch.com/story/brace-for-another-nose-dive-for-stocks-and-welcome-it-2018-02-15 Questions… Read more »
How Inflation Works (or Why Your Chicken Is Going to Cost More)
Description: It’s the worrisome byproduct of a healthy economy: inflation. Source: NYTimes.com Date: Feb 14, 2018 Link: https://www.nytimes.com/interactive/2018/02/14/business/economy/inflation-prices.html?rref=collection%2Fsectioncollection%2Fbusiness&action=click&contentCollection=business®ion=rank&module=package&version=highlights&contentPlacement=1&pgtype=sectionfront Questions for discussion: What does the article say about how inflation develops? How does it grow into a problem for the economy and the markets?