XYL

Jobs surprise–economy delivers stronger than expected performance in December

Jobs surprise–economy delivers stronger than expected performance in December

In December U.S. economy in December added the most jobs since March and the unemployment rate unexpectedly fell. Nonfarm payrolls increased 256,000, exceeding all but one forecast in a Bloomberg survey of economists. The unemployment rate fell to 4.1%, while average hourly earnings rose 0.3% from November, a Bureau of Labor Statistics report showed Friday. For 2024 as a whole, the economy added 2.2 million jobs—-below the 3 million increase in 2023 but above the 2 million created in 2019. The data almost certainly assured that the Federal Reserve would not cut interest rates at its January 29 meeting. As of 11 a.m. New York time, the yield on the 10-year Treasury had climbed another 5 basis points to 4.74%.

Chin’s deflation problem got worse in December

Chin’s deflation problem got worse in December

China’s consumer price index rose 0.1% in December from a year earlier, in line with the median forecast of economists surveyed by Bloomberg. Factory deflation extended into a 27th month, though the producer price index recorded a slower drop of 2.3%, the National Bureau of Statistics said Thursday. For the full year, consumer prices only inched up 0.2% from 2023, well short of the 1.1% gain economists had predicted at the beginning of 2024.

Fed’s December minutes another nail in the coffin for early interest rate cuts

Fed’s December minutes another nail in the coffin for early interest rate cuts

In minutes from the Federal Reserve’s December 17-18 meeting released on Wednesday, January 8, Federal Reserve officials clearly decided to move more slowly on cutting interest rates in the quarters ahead. “Participants indicated that the committee was at or near the point at which it would be appropriate to slow the pace of policy easing,” minutes from the Federal Open Market Committee showed. “Many participants suggested that a variety of factors underlined the need for a careful approach to monetary policy decisions over coming quarters.” Please note the reference to “quarters” and not “months.”

More bad news for stocks from the bond market today

More bad news for stocks from the bond market today

The 20-year Treasury bond, a laggard on the government debt curve since its re-introduction in 2020, topped 5% Wednesday for the first time since 2023. The move looks to be fueled by concern that President-elect Donald Trump’s policies on tariffs and tax cuts will lead to wider deficits and rekindle inflation.

Stocks fall as they begin to price in no rate cut until July

Stocks fall as they begin to price in no rate cut until July

The Institute for Supply Management’s index of services advanced 2 points to 54.1 last month. That show of strength in the economy–readings above 50 indicate expansion–was enough to push stocks lower as the markets began to price in a delay in the next interest rate cut from the Federal Reserve until July The measure of prices paid for materials and services rose more than 6 points to 64.4, suggesting that the drop in the inflation rate in the service sector–about 70% of the U.S. economy–might be over.

Xylem is my 10th Special Report: Profit and Protect pick on the climate change trend

Xylem is my 10th Special Report: Profit and Protect pick on the climate change trend

I’m making Xylem (XYLEM) the 10th and last pick for Stage 1 in my Special Report on the stock market stages for 2021. The stock fills the final slot in my three picks for the climate change trend. The collapse of the energy delivery system in the deep freeze that killed so many people and disrupted the economy from Texas east to Ohio has received the bulk of the headlines. But the stories about families left without drinking water–or indeed water of any sort–should remind us that climate change is also a water crisis.

Xylem is my 10th Special Report: Profit and Protect pick on the climate change trend

My Stock Pick of the Day: Xylem (XYL)

Xylem (XYL) is that rare coin on raw market--a pure play water stock at a time when foresighted investors are looking for water stocks and realizing how few of them exist. (The basic water story is that Mother Nature isn't making more of it. Rising global populations...