Sorry, but the economy's growth spurt isn't going to last Excluding "transitory" effects, the actual growth rate would have been closer to the 1.5 percent rate of the past four quarters. by Jeff Cox The U.S. economy grew in the third quarter at its fastest pace in two years, due largely to factors that are unlikely to last. Gross domestic...
Something 'extremely rare' is happening in the market by Rebecca Ungarino The market has moved in an ultra-tight range since the Brexit vote in late June, but as the water looks calm from above, some traders say there's something lurking beneath the surface. The S&P 500 has closed within 3 percent of its all-time high every single day since late June. Such...
Here's proof that investors are wising up to Wall Street's earnings game When a company's earnings have beaten expectations, the stock has barely risen by Mark Hulbert Investors are finally wising up to the game companies play as they try to manage Wall Street’s expectations. What those companies are trying to do, of course, is report that they have beat...
Will $70 trillion in cash wake up the stock market? by Simon Maeirhofer Worldwide, investors have stashed away $70 trillion in cash, according to BlackRock's president Rob Kapito. That's a big number. Let's put it — and what this means — into perspective. How much is $70 trillion? A $70 trillion dividend spread evenly among the U.S. population would come out to...
10 companies that totally blow away profit targets by Matt Krantz Investors don't usually like surprises. But this earnings season has been loaded with the kind they love: Better-than-expected profits. There are 10 companies in the Standard & Poor's 500 index (SPX) (SPY), including video-streamer Netflix (NFLX), Nike (NKE) and Goldman Sachs (GS) that not only topped third-quarter profit forecasts, but smashed past them by 25% or...
Three reasons this market isn't moving by Rob Isbitts There sure has been a lot of talk lately about elections and other things not being on the "up and up." But two things that have not been on the up and up, nor on the down and down, are the stock and bond markets. U.S. Treasury rates have bounced around...
Is it finally time for the inflation trade? After false starts, it could be the start of a major shift by William Watts Is inflation finally ready to take hold? Some investors are betting on it. The return of inflation would mark a major shift in what’s driving financial markets. If, in response, central banks beyond the U.S. begin scaling...
Classic 'dogs of the Dow' investment strategy is crushing the market this year by Alex Rosenberg A classic investment strategy has paid dividends this year — literally. The "dogs of the Dow" strategy, popularized by Michael O'Higgins in his 1991 book "Beating the Dow," entails buying the 10 Dow (DJIA) (INDU) stocks with the highest dividend yields (which tend to be...
Where the Next Crisis Will Come From Keep an eye on depressed lenders, shadow banks, and China. by Peter Coy Next year ends in a 7. If you’re superstitious or a little loose with statistics, that makes us due for another financial crisis. The biggest one-day stock drop in Wall Street history happened in 1987. The Asian crisis was in...
How Much Longer Will Energy Sector Drag on S&P 500 Earnings? by John Butters Exxon Mobil (XOM) and Chevron (CVX) will also be focus companies for the market next week, as both companies are scheduled to report earnings on October 28. The mean EPS estimate for Exxon Mobil for Q3 2016 is $0.59, compared to year-ago actual EPS of $1.01. The...
