Uncategorized
December 7, 2017 | Daily JAM, Uncategorized |
Will bank stocks in general–and shares of Bank of America (BAC) in particular–take a hit when they report huge fourth quarter “adjustments” and create an opening for a call options play on the 2018 earnings story? Bank stocks have been soaring on the belief, first, that the election of Donald Trump, would provide them with substantial relief from costly regulations and, second, on the belief that banks would be big winners from the tax bill that is now so close to passing Congress. But, to get to those golden days in 2018, banks first have to pass through a fourth quarter from hell. Adjustments to earnings–as result of provisions in the tax bill–will take billions out of bank earnings.
November 11, 2017 | Daily JAM, Uncategorized |
General Electric’s (GE) investors day presentation is scheduled to begin at 9 a.m. New York time on Monday, November 13. New CEO John Flannery will announced whether or not he’ll cut GE’s dividend, sell off divisions such as, potentially, the company’s healthcare business, and how he plans to return the company to growth.
November 8, 2017 | Daily JAM, Uncategorized |
You don’t have to do anything now–but come January 2018, if 2017 finishes the way I outlined in my last post on this momentum market and end of the year selling/window dressing I think rebalancing a portfolio will be a very smart way to begin 2018. Rebalancing–selling winning positions and adding to losing positions until all the holdings in a portfolio are equally weighted–will automatically take profits in the biggest winners of 2017 and redistribute some of that cash into stocks that have been sold down in 2017 but that look set to rebound in 2018.
November 6, 2017 | Daily JAM, Uncategorized |
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...
October 30, 2017 | Daily JAM, Uncategorized |
In my daily trawling through the market I come upon lots of tidbits of knowledge that I think are important to investors but that don’t justify a full post. I’ve decided to start compiling these notes here each day in a kind of running mini blog that I’m calling Notes You Need. This mini-blog includes items like this from today: “11:40 a.m.: The PCE Price Index, the Federal Reserve’s preferred measure of inflation rise by 0.4% in September and is now up 1.6% year over year. In August the index was ahead 1.4% year over year. The core index, which excludes food and energy, was uo 1.3% year over year. Nothing here to change the odds on the Federal Reserve raising interest rates at its December 13 meeting.”
October 28, 2017 | Daily JAM, Uncategorized |
A very heavy week for earnings will reach a crescendo on Thursday, November 2 with reports from Alibaba and Apple. The excitement isn’t surprising after the huge earnings that Amazon (AMZN), Alphabet (GOOG), Microsoft (MSFT), and Intel (INTC) delivered this past Thursday, October 26. This week Facebook (FB) is the Wednesday, November 1, Â warmup act.
October 24, 2017 | Daily JAM, Uncategorized |
Before AMD’s earnings report on October 24, traders had speculated that the company’s earnings would be a useful indicator for what Nvidia (NVDA) would report on November 9. After all, the two companies do compete in some of the same markets with processors for gaming, and servers, and, increasingly for chips with parallel architectures used in artificial intelligence and autonomous driving applications. But AMD dropped almost 11% after it reported. Does that have any significance for Nvidia?
September 28, 2017 | Daily JAM, Uncategorized |
Today Gary Cohn, currently chief economic advisor to President Trump and formerly chief operating officer at Goldman Sachs, told a White House press briefing what the “typical” family of four making $100,000 a year could expect under the President’s tax cut. Try a tax cut of $1,000.
September 28, 2017 | Daily JAM, Uncategorized |
The Treasury market has been taking a beating recently with traders and investors increasingly pricing in a December interest rate increase from the Federal Reserve. So today’s flat performance for the 10-year Treasury is actually a relief, especially considering that the Treasury sold $28 billion in 7-year notes today.
September 25, 2017 | Daily JAM, Uncategorized |
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...
September 23, 2017 | Uncategorized |
The big event this week, as far as financial markets are concerned, will be the Wednesday announcement by the “Big Six” Republican working group of a framework for the long anticipated Republican plan to cut taxes.
September 16, 2017 | Uncategorized |
Expect the Federal Reserve to stand pat on interest rates at the Wednesday, September 20, meeting of its rate-setting Open Market Committee. And for the Fed to announce the schedule for implementing the first stage of its plan to reduce the size of its $4.5 trillion balance sheet. Unless the Fed wants to toss a bomb into global financial markets–which would be totally out of character with the Janet Yellen Fed–the U.S. central bank will leave its benchmark interest rate in the current range.
