The SPDR S&P 500 ETF (SPY) fell 0.10% on Thursday, November 5. Fed chair Janet Yellen’s hawkish comment on the probability of raising short-term rates in December made US investors watchful.
Though consumer sentiment remains low, the First Trust Consumer Discretionary AlphaDEX ETF (FXD) has gained 0.79% in the past week as of November 5, 2015.
A rise in jobless claims indicates that the rise in orderbook and production levels are also not encouraging businesses to increase their headcounts.
So much has been written about Prime Minister Abe’s economic stimulus program amid speculation over whether it will be enough to drag Japan out of its economic funk.
The rise of factory automation in China (GCH) has been rapid and unprecedented. China is the largest market for robots and automated parts.
Mario Draghi, president of the European Central Bank, reaffirmed the ECB’s plan to provide a fresh monetary stimulus in December to boost inflation in the region if needed.
On November 4, Range Resources (RRC) announced its agreement to sell its Nora Field assets for $876 million. RRC was rated a “buy” by the research analysts at Citigroup.
The stock market’s two-day rally stalled on November 4 after Janet Yellen, the Federal Reserve chair, commented about a possible rate hike in December 2015.
The surge in the value of the US dollar has been a factor in bringing import prices down. Fed chief Janet Yellen has argued that import prices have been a major factor in keeping inflation well below the Fed’s 2% target.
The Fed held off its rate hike in September, citing uncertainties in China, a China-induced global slowdown and volatility, and financial markets as the primary reasons.
Is the profit recession likely to continue? Looking forward, solid consumer demand could support the economy.
The stronger dollar and low oil prices are causing a disconnect between earnings and the economy. Both are in play in the current profit recession.
Economic growth is the biggest driver of earnings growth. Earnings growth seems to follow the same trajectory of GDP growth.
While the US economy hasn’t shown signs of slumping into recession yet, we certainly seem to be in the midst of a profit recession. Weakness in the global economy has been a drag on revenues.
The service sector makes up more than 85% of the US economy. With manufacturing picking up in October, faster growth in the service sector may further ramp up economic growth.
The service sector makes up for about 85% of the US economy. With softer expansion in both business activity and new orders, services PMI fell by 0.3 points in October to 54.8.
According to the US Census Bureau, the goods and services deficit was $40.8 billion in September, down $7.2 billion from a revised $48.0 billion in August.
A rise in job opportunities boosts consumer confidence and drives growth in sectors like housing, retail, and leisure.
Tullow Oil (TLW) traded at 235.5 pounds above its 50-day and 20-day moving averages. Its stock volume trade surged from 4 million stocks on November 2 to more than 12 million on November 3.
Pioneer Natural Resources (PXD) was one of the top stocks of the SPDR S&P 500 ETF (SPY) on November 3. It gained on the day due to a rise in oil prices and strong performance in its recent quarter.