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      by Larry Levin   Well things are back to “normal” for the time being. Earnings disappointments, check. Bad economic news, check. Market rebound, check. Another Central Bank sticksave, check. Yesterday it was IBM, today it is the other consumer-spending bellwether, Coke, to disappoint on earnings. But Coke didn’t just miss, it missed big, reporting $11.98 billion in sales, well below the estimated $12.12 billion. In addition, they had warnings about the future, guiding "below its long-term EPS growth target for 2014." Of course the shakiness … [Read more...]

Earnings Helping Stocks Move Higher


  The U.S. equity markets are extending yesterday's modest gains, ahead of a read on domestic existing home sales, while the Street is digesting upbeat earnings reports from Apple, and Dow members United Technologies and Travelers Companies. Meanwhile, European stocks are gaining ground on some favorable earnings reports in the region and speculation of European Central Bank bond purchases. However, other earnings from the Dow were mixed, with McDonald's missing analysts' same-store sales expectations, Coca-Cola posting softer-than-expected revenues, and Verizon Communications' … [Read more...]

Stocks Beginning the Week Mixed


        The U.S. equity markets are mixed in early action, following Friday's solid rebound to cap off a volatile week, with earnings season ramping up, while the domestic economic docket is quiet today. Dow member IBM is finding solid pressure after the company posted much softer-than-expected 3Q results. Meanwhile, overseas, European stocks are broadly lower in the wake of a lowered full-year profit forecast from Germany's SAP, while Royal Philips missed analysts' quarterly expectations. Gold is trading higher, along with Treasuries, while the U.S. dollar is … [Read more...]

QE 4

QE 41

      by Larry Levin   If you have been paying attention to the real reason why the Federal Reserve conducted QE2, Operation Twist, QE3, etc it is not to help the jobless, or to lift inflation, or for the general economy. No, it is now and has always been to boost the stock market. I know that this isn't part of the Fed's mandate, but why would that matter to a group of secret bankers? Just two days ago, when the market (ES) was trading at a shockingly low level of 1875.00, word came from on-high that a Fed member mentioned a possible QE4 action. Could it … [Read more...]

Stocks Pointing to an Early Rebound


      The U.S. equity markets are moving nicely higher in early action as a report showing domestic housing starts topped expectations and a sharp rebound in Greece are helping provide some relief to global sentiment, which has been rattled as of late by a plethora of global uncertainty. Moreover, the U.S. earnings calendar is in focus, with Dow member General Electric slightly beating the Street's earnings expectations and Morgan Stanley besting analysts' quarterly projections, while Google missed with its bottomline results. Treasuries are moving lower on the rebound … [Read more...]

Cra-Cra Zone!


        by Larry Levin   Wednesday's markets – all of them – were absolutely crazy, or cra-cra as the kids say. The energy markets were mad yesterday, while stocks and BONDS went ape-sh*t today. As Rod Sterling may have said: There is a fifth dimension beyond that which is known to man. It is a dimension as vast as space and as timeless as infinity. It is the middle ground between light and shadow, between science and superstition, and it lies between the pit of man's fears and the summit of his knowledge. This is the dimension of FALLING … [Read more...]

Stocks Overcome Early Pressure

      The U.S. equity markets are trading modestly higher in afternoon action, with traders assessing the recent downside volatility that has come from exacerbated global growth concerns, resurfaced eurozone debt worries, elevated geopolitical tensions, and heightened Ebola fears. Meanwhile, comments to Bloomberg from St. Louis Fed President and non-FOMC voting member James Bullard suggesting the Central Bank should consider delaying the end of its asset purchases appeared to help stocks overcome their early sell-off. Elsewhere, U.S. jobless claims dropped and Dow member … [Read more...]

Park the Prius


      by Larry Levin   Park the Prius and pull the SUV out of the garage. Oil prices posted their biggest one-day drop in nearly two years Tuesday as a U.S.-led wave of crude has crashed into weak global demand, threatening the stability of some countries and providing an economic lifeline to others. Tuesday’s slide of 4.5% by U.S. crude oil to $81.84 a barrel on the New York Mercantile Exchange left the price down 20% since the start of June. That was the lowest closing price since June 2012, and some analysts predict the price will fall as much as $10 a … [Read more...]

Global Rout Remains

Global Economic Worries2

      Although off the worst levels of the day, U.S. and European stocks remain solidly lower, as already skittish global growth concerns were exacerbated by a plethora of softer-than-expected domestic data, and a rally in Treasuries is ensuing and the U.S. dollar is seeing pressure. Retail sales surprisingly declined, producer prices unexpectedly dipped, regional manufacturing activity decelerated much more than anticipated, and business inventories missed expectations. The data comes ahead of an afternoon look at business activity across the nation, courtesy of the … [Read more...]

Creative License

Creative License2

      By Larry Levin   Often bizarre, always baffling and generally broken, the financial markets and the economy, the subject of these missives, have provided me with plenty of material. Well, now the financial analysts and other mainstream players have also ditched the traditional jargon and are reaching for artistic and creative references. From Bloomberg: Ed Yardeni cited “The Wizard of Oz.” International Monetary Fund Managing Director Christine Lagarde went with both “Alice in Wonderland” and Harry Potter. Stephen King -- the HSBC … [Read more...]