Analysts Grow Bullish With Earnings Forecasts
Markets traded mixed last week as macro headwinds collided with high-stakes earnings. The S&P 500 slipped -2.36%, while the Nasdaq fell 2.17% in a volatile tech-led week. Most of that decline came on Friday following a much weaker-than-expected jobs report and a resurgence in tariff announcements. Here are the data highlights.
Company Buybacks Are Surging
As markets close the week after setting fresh all-time highs, the near-term outlook remains cautiously constructive but demands more tactical positioning. Earnings season is ramping up, and early reports from sectors like consumer staples, airlines, and semiconductors have reinforced the bullish narrative, helping propel the S&P 500 to new records. However, technical indicators, including stretched RSI levels and flattening MACD histograms, signal that short-term momentum could reach exhaustion levels, particularly in mega-cap growth stocks.
Tariffs Cause The First June Surplus In Nine Years
For the first time since 2016, the Federal government ran a budget surplus in June. Before the Financial Crisis, a surplus was the norm. However, since then, deficits have been the rule, not the exception. The cause of the $27 […]
MP Materials Is Bought By Uncle Sam
In a unique event, the US government, specifically the Department of Defense (DoD), bought a 15% stake in the nation’s largest rare earth miner, MP Materials (MP). The DoD is buying $400 million of MP’s convertible preferred stock. The transaction will […]
Is The Dollar Setting Up For A Comeback?
The S&P 500 closed the week in positive territory, marking another strong performance near record highs. While the index briefly hit new all-time levels midweek, the rally lost some steam on Friday as investors grew cautious ahead of key inflation data and Trump's most recent tariff announcements. However, volatility remained subdued despite those announcements, as complacency remains high despite stretched valuations and upcoming catalysts.
Retirees with guaranteed income spend more.
David Blanchett and Michael Finke penned a June 2024 research paper for the Retirement Income Institute that shared insight into why retirees with a guaranteed income spend more. They deem guaranteed retirement income a “license to spend.” The study’s results […]
Crisis At Apple: Can They Catch Up In The AI Race?
Apple (AAPL) shares are languishing this year. As we share below, the stock is down over 16% year-to-date and significantly lags all of the Magnificent Seven stocks except Tesla. While weak revenue growth and relatively few new products are culprits, […]
Shadow Fed Chair: Good Idea?
Donald Trump’s frustration with Chairman Powell increases by the day. Consequently, per The Wall Street Journal, expectations are that Trump will announce Powell’s successor sooner than typical. Powell’s term expires May 2026. If Trump goes through with an early nomination, this “shadow […]
WWIII – The Death Of Another Narrative
The S&P 500 and the Nasdaq both set all-time highs this week. This feat seems remarkable given the barrage of negative headlines, geopolitical risks, and a Federal Reserve intent on not cutting rates. However, the bulls remain decisively in control of the market as it closed above the 6100 level amid a backdrop of weakening economic data, dovish undertones from the Federal Reserve, and continued strength in mega-cap tech. Despite some pockets of sector underperformance, key technical indicators suggest bullish momentum remains intact, but with caveats beneath the surface.