After Respite Stocks Back To Weekly Losses

A week after breaking long weekly losing streaks, the stock market is back to its losing ways, with the DOW falling 348.58 points, or -1.05%, to 32,899.70. The S&P 500 slipped by -1.63% to 4,108.54, and the NASDAQ fell -2.47% to end the week at 12,012.73.

On a weekly level, the DOW lost -0.94; the S&P fell -1.20%, and the NASDAQ wrapped up the weekly losses with a loss of -0.98%.

But why the losses? Continue reading "After Respite Stocks Back To Weekly Losses"

Inflation: Is The Glass Half Empty Or Half Full?

The inflation rate rose 0.2% in April; is the glass half empty or half full?

Today the BEA (Bureau of Economic Analysis) released the PCE (personal consumption expenditures) for April 2022. This report is the preferred inflation gauge used by the Federal Reserve as a key component to shape their forward guidance of monetary policy. Continue reading "Inflation: Is The Glass Half Empty Or Half Full?"

Stocks Rise On Slowing Inflation Report

The Fed's preferred inflation gauge's core personal consumption expenditures price index rose 4.9% from a year ago in April, in line with estimates and a deceleration from March when the inflation gauge stood at 5.2%. While still elevated, the report indicates that price pressures could be easing a bit, as reported by the Commerce Department reported Friday.

However, the report/number excludes volatile food and energy prices that have significantly contributed to inflation running around a 40-year peak. If you include food and energy, headline PCE increased 6.3% in April from a year ago. That also was a deceleration from the 6.6% pace in the previous month. However, the monthly change showed a more marked pullback, increasing just 0.2% compared with the 0.9% surge in March. Continue reading "Stocks Rise On Slowing Inflation Report"

What All The Recession Talk Really Means

If you’ve been following along here over the past year, I won’t have to remind you that I have no problem telling it just like it is. And that includes the good news, and the bad news, about Bitcoin (BTC), cryptocurrencies in general, stocks, and the economy. You name it, and I try to be upfront and transparent.

In fact, in last week’s post, I gave you the grisly details behind the sell-off in just about every asset class. I showed you how much every major stock index was down for the year in gory detail. I then showed you how Bitcoin was a member of that dubious club.

I also got under the hood of what I consider to be the biggest factor right now, which is hammering stocks and Bitcoin: Inflation.

The fact is inflation is at nosebleed levels, and it’s got just about everyone in a tizzy. And with good reason: Inflation eats away at incomes and makes products and services super-expensive. And since inflation now stands at multiple decade highs, you ignore it only at your own peril.

But as bad as inflation is, I have to remind you that down deep, what really makes investors nervous is not inflation itself but the tool of choice that gets used to fight it: Higher interest rates. Continue reading "What All The Recession Talk Really Means"

S&P 500 Flirts With Bear Market

The S&P 500 and stock market were under heavy pressure in early trading as the "R" word was thrown around. The S&P 500 was down as much as -2.3% earlier in the session. At the day's lows, the S&P 500 was -20.9% below its intraday high in January, which would signal an entry into a bear market.

There's no official bear market designation on Wall Street. Some will count Friday's decline at the intraday lows as confirmation of a bear market, whereas some may say it's not official until it closes -20% off its high. Regardless, it's the biggest downturn of this magnitude since the rapid bear market in March 2020 at the onset of the pandemic.

The S&P 500 finished +0.01% higher to 3,901.36 on Friday. The DOW rose 8.77 points, or +0.03%, to 31,261.90, and the NASDAQ fell -0.30% to finish the week at 11,354.62. Continue reading "S&P 500 Flirts With Bear Market"