September 17, 2019 | Daily JAM, Short Term |
Yesterday, Monday September 16, oil prices moved massively higher after drones knocked out half of Saudi Arabia's oil production capacity over the weekend. Today, Tuesday September 17, oil prices gave back about half that spike with U.S. benchmark West Texas...
September 17, 2019 | Daily JAM, Morning Briefing, Short Term |
On Tuesday the Federal Reserve bought $53.2 billion of short-term securities to stabilize the market for money market securities. A funding shortage on Monday and Tuesday had led rates on overnight general collateral repurchase agreements to climb as high as 10% and...
September 17, 2019 | Daily JAM, Short Term |
The assumption in Chinese financial markets has been that if the data showed the Chinese economy slowing further, the People's Bank would ride to the rescue with increased stimulus. Well, the data did it's part on Monday. Industrial output rose just 4.4% year over...
September 16, 2019 | CSCO, Daily JAM, GLW, ISRG, PANW, Special Reports |
(A word of apology. I hadn't realized that I had written about this Special Report but never posted it until several readers brought it to my attention last week. My initial reaction was "Impossible! Of course I'd posted it." But checking showed I hadn't. It took...
September 16, 2019 | Daily JAM, Morning Briefing |
Oil prices are higher--much higher--today after a drone attack on Saudi Arabia's Abqaiq processing center knocked out 50% of the country's oil production. As of 1 p.m. New York time U.S. benchmark West Texas Intermediate was up 13.58% to $62.30 a barrel. International...
September 14, 2019 | Daily JAM |
...what else but the Federal Reserve. The U.S. central bank's interest rate setting body, the Open Market Committee, Â meets on Wednesday, September 18. As of Friday, September 13 the Fed Funds Futures market was pricing in a 78.5% chance of a 25 basis point cut in the...
September 13, 2019 | Daily JAM, Stock Alerts |
The new workhorse of the Apple iPhone lineup, the iPhone 11 starts at $699. That's down from the $749 price of the iPhone XR last year. The XR wound up accounting for about 50% iPhone unit sales. The iPhone XR remains in the lineup but the price goes to $599. That's a...
September 13, 2019 | Daily JAM, Mid Term |
Companies sold $13 billion in junk bonds this week, according to Bloomberg. Risk premiums for junk bonds over Treasuries have dropped by 1.5 percentage points in 2019. And at the same time when investors are getting paid less to take on risk, the amount of risk among...
September 13, 2019 | Daily JAM, Morning Briefing, Short Term |
One way to understand of the recent market action--one way that makes sense to me--is to think of it as a big short squeeze. The drop in Treasury yields and the climb in Treasury prices went to far in August with Treasuries showing their biggest monthly gain in the...
September 12, 2019 | Daily JAM, Short Term |
October 1 is National Day in China. That's always a big deal as the country celebrates the founding of the People's Republic. But it's an even bigger deal this year since this October 1 marks the 70th anniversary of the founding. Speculators know that in the run up to...
September 12, 2019 | Daily JAM, Short Term |
Yesterday, Wednesday, September 11, President Donald Trump postponed the imposition of an additional five percentage points in tariffs on Chinese exports by two weeks. That follows on China's decision to exempt about $1.6 billion in U.S. exports to China from higher...
September 12, 2019 | Daily JAM, Mid Term, Morning Briefing |
If it had come to a formal vote, there's a good chance that European Central Bank President Mario Draghi would have faced defeat in his efforts to revive quantitative easing at the central bank. But the bank doesn't usually hold a formal vote on a issue like this and...