Morning Briefing
January 26, 2022 | Daily JAM, Morning Briefing |
Today, January 26, in its post Open Market Committee press release the Federal Reserve said it would “soon” be appropriate to raise interest rates, as inflation runs above policymakers’ preferred target and the job market strengthens. The Fed left interest rates unchanged with the benchmark at 0% to 0.25%. The Fed also left its schedule in place to end its bond buying program in March. And promised to shrink its balance sheet holdings (most probably by not replacing bonds in its portfolio when they mature) “in a predictable manner.”
January 25, 2022 | Daily JAM, Morning Briefing, MSFT |
Last night after the close of trading, IBM (IBM) reported earnings (excluding one-time items) of $3.35 a share for the December quarter. Analysts were looking for $3.23. Gross margin was 56.9%, beating the 56.1% analysts expected. Which leads to the important question of whether BIG TECH earnings and revenue reports, due in the next week, will stabilize stock prices/
January 24, 2022 | Daily JAM, Mid Term, Morning Briefing |
This morning the Standard & Poor’s traded more than 10% below its January 3 high. That puts this big market index in correction territory. As of 1 p.m. New York time the S&P 500 was down 2.99%. And that S&P 500 is one of the better stories this year. The NASDAQ Composite is off 17% from its November 19 high. The small cap Russell 2000 is down 20%, putting it on the edge of a bear market.
January 23, 2022 | Daily JAM, Morning Briefing, Short Term, Volatility, You Might Have Missed |
Emerging markets and developing economies are looking at two very big and relatively near-term threats. First, and we know this one is coming, interest rate increases by the Federal Reserve could trigger a new debt crisis. Developing country debt repayments to creditors are already running at their highest level in two decades–even before higher U.S. interest rate and a strong dollar increase the burden on emerging markets and currencies.
January 19, 2022 | Daily JAM, Morning Briefing, Volatility, You Might Have Missed |
To subscribe to JAM you need to fill in some details below including, ahem, some info on how you'll pay us. A subscription is $199 (although if you're subscribing with one of our special offers it will be lower) for a year for ongoing and continuing access to the...
January 12, 2022 | Daily JAM, Morning Briefing |
As of the close in New York on Wednesday, January 12, the Standard & Poor’s 500 was up 0.28%; the Dow Jones Industrial Average had edged higher by 0.11%; and the NASDAQ Composite had climbed 0.23%. Even though, the Labor Department reported this morning that inflation, measured by the headline Consumer Price Index (CPI) had climbed at a 7% year over year rate in December? That the biggest jump in the annual inflation rate since June 1982. The stock market logic on this is very clear.
January 7, 2022 | Daily JAM, Morning Briefing |
Non-farm payrolls grew by 199,000 in December (and a revised 249,000 in November) the Bureau of Labor Statistics announced this morning. Economists surveyed by Bloomberg had expected the U.S. economy to add 450,000 jobs in the month. The official unemployment rate fell to 3.9% from 4.2% in November and an expected 4.1%.
January 6, 2022 | Daily JAM, Morning Briefing, Short Term |
Applications for unemployment benefits in regular state programs rose last week to 207,000 for the week ended January 1, the Labor Department reported today, Thursday, January 6. That was up 7,000 from the prior week and above the 195,000 predicted by economists surveyed by Bloomberg. The total remained near historic lows.
January 5, 2022 | Daily JAM, Morning Briefing |
U.S. private payrolls grew by 807,000 in December, according to ADP Research Institute today. That’s the most jobs added in a month in seven months. Economists surveyed by Bloomberg had projected an increase of 410,000. Financial market reaction has been modest today with the yield on the 10-year Treasury rising 2 basis points, as of noon New York time, to 1.67%. That’s an increase of 32 basis points in the last month.
January 4, 2022 | Daily JAM, Morning Briefing |
An estimated 4.5 million workers quit or changed jobs in November, according to a new report from the Department of Labor. That number is up from the 4.2 million who quit or changed jobs in October and is above the record to 4.4 million set in September.
January 3, 2022 | Daily JAM, Morning Briefing, Short Term |
Shares in China’s Evergrande Group have been suspended from trading in Hong Kong, the property developer announced on Monday. The company did not give a reason. Leaving us to speculate and there’s plenty to speculate with. Evergrande missed new coupon payments of $255 million due last Tuesday–and that’s just the beginning
January 2, 2022 | Daily JAM, Morning Briefing, Short Term |
Everyone on Wall Street who manages more than a dime will be watching Friday’s release of the jobs report for December. Any hint of how the Delta and Omicron Variants have/will affect the economy will be gobbled up and turned into strategies for the next 10 to 12 weeks (until spring, that is.) Economists surveyed by Bloomberg expect that the economy added 400,000 jobs in December
