Financial Review

Good Friday

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAR_NOE-SEG_1-03-25-2016.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSMarkets closed today. GDP revised slightly higher. More on Arizona’s election fraud.

READ MORE →
Financial Review

Fed Jawbones Hawkish

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-03-24-2016.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSThe Fed talks hawkish, numbers don’t add up, Argentina skates, Puerto Rico under new colonial rule.

READ MORE →
Financial Review

I Would Like to Thank the Academy

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-02-26-2016.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe for 02-26-2016 DOW – 57 = 16,639 SPX – 3 = 1948 NAS + 8 = 4590 10 Y + .07 = 1.76 OIL – .29 = 32.79 GOLD – 10.90 = 1222.80   For the week, the Dow Industrials added 1.5%, the S&P 500 gained 2%, the Nasdaq was up 1.9%. The S&P 500 has rallied about 6.5 percent since reaching a 22-month low on Feb. 11, it remains lower by more than 4.5 percent for the year. The dollar strengthened for a third day versus the yen, while yields on 10-year Treasury notes topped 1.75 percent. Oil capped the biggest weekly gain since August, with a 10% move. China’s central bank said it sees room for monetary easing. Chinese markets were up over 1% after a big 6% drop Thursday.  The MSCI All-Country World Index rose 0.1 percent, while the Stoxx Europe 600 Index rose 1.5 percent. Gold posted a consecutive weekly drop for the first time this year.   Finance ministers and central bank governors from the world’s leading economies have gathered in Shanghai to discuss a response to the global economic landscape. Among the many issues facing them is the plunge in commodity prices, market volatility, exchange rates and the slowdown of China’s economy. G20 participants will try to agree on a coordinated stimulus program that could stop a global slowdown from turning into something worse. …

READ MORE →
Financial Review

The Last Jobs Report of 2015

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-01-08-2016.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe for 01-08-2015 DOW – 167 = 16,346 SPX – 21 = 1922 NAS – 45 = 4643 10 Y – .02 = 2.13% OIL – .34 = 32.93 GOLD – 4.60 = 1105.60   The economy added 292,000 new jobs in December, much higher than estimates of 205,000 to 215,000. The unemployment rate was unchanged at 5.0%. The October and November reports were revised higher to show an additional 50,000 new jobs. In the final three months of 2015, the U.S. added an average of 284,000 jobs. That’s the fastest pace in almost a year. For the past year the economy added 2.7 million jobs. In 2014 the economy added 3.1 million jobs; that’s the best 2 years for job growth since the late 1990s. The economy has added jobs for 70 consecutive months; right at 14 million jobs during that time.  Over the past year the unemployment rate has dropped from 5.7% to the current 5%.   Hiring in December was led by professional firms. They added 73,000 jobs, though almost half were temporary. Construction companies added 45,000 new workers (but that might be more a sign of mild winter weather across much of the country in December, rather than a big upsurge in construction). Over the year, construction added 263,000 jobs, compared with a gain of 338,000 jobs in 2014. Health care employment rose by 39,000, with most …

READ MORE →
Financial Review

Turkey Shoots

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-11-24-2015.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe for 11-24-2015 DOW + 19 = 17,812 SPX + 2 = 2089 NAS + 0.33 = 5102 10 YR YLD – .01 = 2.24% OIL + .89 = 42.64 GOLD + 6.70 = 1076.40 SILV + .05 = 14.30   The US economy expanded at a faster pace in the third quarter than previously reported. Gross domestic product rose at a 2.1% annualized rate, up from an initial estimate of 1.5%. Nearly all of the improvement was because of revised data on inventories, which showed businesses restocking shelves at a faster pace than the government first estimated. Still, company stockpiles remained elevated compared with sales, indicating that new orders and production will cool further to clear shelves and warehouses heading into 2016. Inventories grew at a $90 billion annualized rate from July through September, almost twice as much as previously estimated, but down from the second quarter.   The improvement in inventory levels was offset by a slight downward revision in consumer spending last quarter. Cheap gasoline is giving households a little extra money, and consumers are spending, just not quite as fast; consumer spending was revised down to 3% from 3.2% in the initial estimate for the third quarter. Consumption during the current fourth quarter, including the holiday shopping season, is expected to increase at an annualized rate of about 3%.   For all of 2015, the rate of …

READ MORE →
Financial Review

Until Something Breaks

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-10-29-2015.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe for 10-29-2015   DOW – 23 = 17,755 SPX – 0.94 = 2089 NAS – 21 = 5074 10 YR YLD + .08 = 2.17% OIL + .12 = 46.06 GOLD – 10.20 = 1146.50 SILV – .35 = 15.68   Gross domestic product, the value of almost everything a nation produces, rose at a 1.5% annual pace in the third quarter; that’s down from a 3.9% rate in the second quarter. The slowdown stemmed mostly from the biggest drawdown in inventories in three years. Companies cut spending on structures such as oil platforms and commercial buildings. Even as businesses showed more caution, consumers continued to spend money at steady clip. Consumer spending, the single largest determinant of U.S economic growth, rose at a 3.2% annual pace following an even larger gain in the second quarter. Some parts of the economy are performing well; technology, health care, and finance are enjoying conditions that echo the booming 1990s or the housing bubble a decade ago. The energy sector is hurting and cutting jobs and closing down projects.   Shipping is a measure of the real economy. Shipments usually increase from August to September. They did this year too. The number of shipments in September inched up 1.7% from August, according to the Cass Freight Index. But the index was down 1.5% from an already lousy September last year, when shipments had …

READ MORE →
Financial Review

Busy Day

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-09-25-2015.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe for 09-25-2015   DOW + 113 = 16,314 SPX – 0.9 = 1931 NAS – 47 = 4686 10 YR YLD + .05 = 2.17% OIL + .64 = 45.55 GOLD – 7.70 = 1147.40 SILV – .05 = 15.20   For the week, the Dow was down 0.4 percent, the S&P 500 was down 1.4 percent and the Nasdaq was down 2.9 percent.   Yesterday afternoon we told you about Janet Yellen’s speech in Massachusetts; Federal Reserve Chairwoman Janet Yellen says that an initial rate hike is likely to be appropriate this year. Yellen said she expects inflation will return to 2% over the next few years as temporary factors currently holding it down will wane. Signs of weak growth overseas won’t prove large enough to have a significant impact on policy. Yellen said: “Most FOMC participants, including myself, currently anticipate…an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter.”   Near the end of her speech, Yellen kind of froze up; she went silent for a while, stumbled over her words, and seemed to be having a hard time. After the speech paramedics checked her out and gave her a clean bill of health. Later attributed the incident to dehydration. She was back at work today.   This morning we heard reports House Speaker John Boehner would resign his position as Speaker of …

READ MORE →
Financial Review

Better Than We Thought

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-08-27-2015.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe for 08-27-2015 DOW + 369 = 16,654 SPX + 47 = 1987 NAS + 115 = 4812 10 YR YLD un = 2.17% OIL + 4.03 = 42.63 GOLD + .10 = 1126.50 SILV + .41 = 14.62   Yesterday Wall Street cracked a six-day losing streak with its best rally in nearly four years. Today, traders piled on; the two-day total, 978 points on the Dow industrials and the best two-day percentage gain since the crisis of 2008; which wipes out Monday’s losses, but still leaves the Dow down from one week ago. On the longer-term charts, Monday and Tuesday dropped below the lows of last October at 15,855, compared to Monday’s low of 15,370, which basically matched the lows from February 2014 at 15,340. On a long-term chart this now provides a range of support. With today’s gains, the S&P has recovered about half of the 11-percent meltdown it suffered over a six-day losing streak.   China’s key stock market index surged 5.3 percent earlier today, for its biggest gain in eight weeks, and the first gain in five sessions. China has been selling down its holdings of US Treasuries; the idea is to put a floor under the devaluation of the yuan; also probably to raise some capital for stimulus. So far, it isn’t an asset dump and there is absolutely no evidence it is the source of …

READ MORE →
Financial Review

The Value of Everything

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-07-30-2015.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe DOW – 5 = 17,745 SPX + .06 = 2108 NAS + 17 = 5128 10 YR YLD – .01 = 2.27% OIL – .27 = 48.35 GOLD – 8.40 = 1089.30 SILV – .08 = 14.83   Gross domestic product rose at a 2.3% annual rate from April to June, missing expectations for 2.6% growth. First quarter GDP was revised to show 0.6 percent growth after previous reports showed a 0.2 percent downturn. The latest reading on GDP was propelled by higher consumer spending on big-ticket items such as new cars and trucks and the strongest housing market in years. Personal spending accounted for two percent of the 2.3% headline increase.   Builders increased spending on new home construction at a 6.6% clip in the spring, especially for townhouses, condos and apartment units. That follows 10% gains in the prior two quarters. US exports, meanwhile, snapped back with a 5.3% increase after a 6% drop in the first quarter. Imports rose at a slower 3.5% pace. The improved trade figures also gave the economy a small boost.   Business investment was weak again. Outlays on equipment declined 4.1% and the value of inventories fell slightly to $110 billion from $112.8 billion. Spending on structures such as oil platforms fell 1.6%, largely because of the drop in oil prices. The story on the economy remains consistent: strong consumption, weak investment. …

READ MORE →
Financial Review

Sorry McFly

http://media.blubrry.com/eatthebankers/p/content.blubrry.com/eatthebankers/SINCLAIR_NOE-SEG_1-06-24-2015.mp3Podcast: Play in new window | Download (Duration: 13:16 — 6.1MB)Subscribe: Apple Podcasts | Android | RSSFinancial Review by Sinclair Noe DOW – 178 = 17,966 SPX – 15 = 2108 NAS – 37 = 5122 10 YR YLD – .04 = 2.37% OIL – .74 = 60.27 GOLD – 3.00 = 1179.00 SILV + .04 = 15.98   The American economy shrank in the first quarter by a smaller amount than previously reported. Gross domestic product declined by 0.2% annual rate from January to March. Previously the Commerce Department had estimated a seasonally adjusted 0.7% drop. This is the third and final revision to first quarter GDP; so this final estimate, while still negative, isn’t as bad as we thought.  Household spending was revised up to 2.1% from 1.8%. Consumers spent more at restaurants and on transportation.  Private sector investment also rose a bit more, up 2.4% vs. a prior 0.7% estimate; and digging deeper, most of the move in private investment came from residential investment – up 6.5% in the final reading. Now this indicates signs of life in the housing market, but we still aren’t seeing enough in the way of business investment. Companies seem to have piles of cash and all they do is buy back their own stock.   Inflation as measured by the PCE price index fell at a 2% annual rate. The core rate that excludes food and energy was up 0.8% in the same span, well below the Federal Reserve’s preferred rate …

READ MORE →