Stock indexes need to consolidate August gains after a strong July
The decline in real rates helped the stock indexes during July. However, it still poses a threat to higher valuations at current levels.
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The decline in real rates helped the stock indexes during July. However, it still poses a threat to higher valuations at current levels.
There was a flurry of corporate activity and news during the week of August 8-12, with Disney, Dutch retailer Ahold Delhaize, EV start-up Rivian and other companies attracting our attention
The Walt Disney Company released strong quarterly results on Wednesday, with its streaming services reporting total subscribers that were higher than those of rival Netflix
The NAS100 is strongly correlated to interest rates. This article examines the strange movement in real yields and relates it to the index.
The U.S. Federal Reserve's balance sheet consists of the Fed's portfolio of U.S. Treasury and government-guaranteed mortgage-backed securities (MBS). Along with controlling short-term interest rates, the balance sheet is one of the Fed's main instruments for conducting monetary policy in order to execute its mandate of maintaining moderate interest rates and full employment. Since the global financial crisis in 2008, and then again during the COVID-19 pandemic-induced economic lockdown in…
The CPI print will reflect in real rates adjusting. Any changes will ripple down to the value and growth sides of the stock market.
The tech-heavy index declined after the strong employment report that boosted expectations for another big move from the Fed, while markets now gear up for Wednesday’s inflation figures
The first week of August remained a busy one, as we had a large number of high profile corporations releasing their financial results, such as chip-maker AMD, British energy giant BP, ride-hailing firm Uber and others
The US stock markets are at a better place today as investors try to put recent geopolitical tensions in the rearview mirror and turn their focus to today’s encouraging economic data
The tech-heavy NAS100 is feeling the pressure as China/US tensions flare over House Speaker Pelosi's trip to Taiwan.
The 10-yr real rate is just 7bps from 0 (black line chart), and the 5-yr is 7bps below 0 (red line chart). Given that interest rates are included in the denominator of the time value of money, this deterioration is supportive of present values. I.e. it is acting against the whims and desires of the Fed's stated intention of controlling inflation.
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