Showing posts with the label U.S. Market.

Why stock market bulls may be right to push valuations so high?

 Source: Jim Ayres, , Larry Hood 6-7 minutes Your browser does not support the audio tag. This feature is powered by text-to-speech technology. Want to see it on more articles? Give your feedback below or email . With U.S. stocks reaching new highs, investors and experts alike are starting to wonder if market conditions are getting frothy. In a frothy market, investor enthusiasm begins to outpace any consideration of risk.  Investors feel confident in the economy and corporate earnings and begin to project that confidence further into the future.  They increasingly listen to their greed impulse and tune out fear, leading them to bid up stock prices to levels that look historically high and difficult to justify based on the near-term outlook. Taken to its extreme, this eventually lays the groundwork for a bubble, when investor emotion causes

U.S Market: Wall Street Is Underestimating the Economic Recovery

 Source: Conor Sen 2 minutes The U.S. remains in a deep employment hole, with 6.7 million fewer jobs in June than there were in February 2020. But that overstates the weakness in the economy, with last week's second-quarter gross domestic product report showing American output is back at an all-time high. Last week's personal income report showed worker incomes are at all-time highs, as well. What this divergence suggests is that a return to full employment will mean a higher level of output and worker incomes than is now appreciated, opening up a path for the economy to grow at a faster rate over the next several years than it did in the 2010's. The elegant way to show this numerically is to look at the change in real GDP, employment, and wages and salaries received by workers between December 2019 and June 2021. Real GDP has increased by 0.8%. Employment is down by 4.1%. And  wages and sala

U.S. Market: A 10% drop or at least a pause could be looming for the S&P 500 by MarketWatch.

Image Need to Know: A 10% drop or at least a pause could be looming for the S&P 500. Take shelter in these sectors, says veteran strategist By Barbara Kollmeyer 7-8 minutes Critical information for the U.S. trading day Getty Images Legendary investor Warren Buffett told his faithful over the weekend that the U.S. economy is “red hot,” suggesting money in an index fund is better served than picking stocks. That advice comes as investors face what could be a seasonally weak period for equities. The “sell in May and go away” adage dictates

U. S. Market: Dow futures drop 300 points, S&P 500 set to fall from record Yun Li 10-12 minutes This Cookie Notice (“Notice”) explains how NBCUniversal and its affiliates (“NBCUniversal” or “we”), along with our partners, including advertisers and vendors, use cookies and similar tracking technologies when you use our websites, applications, such as games, interactive TV, voice-activated assistants, and other services that link to this policy, as well as connected devices, including those used in our theme parks (“Services”). This Notice provides more information about these technologies, your choices, and is part of the NBCUniversal Privacy Policy available here . You should read the Privacy Policy and this Notice for a full picture of NBCUniversal’s use of your information. WHAT ARE COOKIES AND HOW ARE THEY USED? Like many companies, we use cookies (small text files placed on your computer or device) and other tracking technologies on the Services (referre

U.S. Market | Wall Street Closing Report: Dow snaps 8-day winning streak on fears spiking oil will slow the global economy

Fred Imbert 4 minutes - Source: CNBC Stocks fell on Monday amid fears that a surge in oil prices following an attack in Saudi Arabia could slow down global economic growth. The Dow Jones Industrial Average slid 145 points, or 0.5%. It was the first decline in nine days for the Dow. The S&P 500  pulled back 0.3%. The  Nasdaq Composite also dipped 0.3%. Quincy Krosby, chief market strategist at Prudential Financial, said “anything that would suggest this is going be painful for the economy” is going to hurt the stock market. “It’s contained, right now,” said Krosby. “That’s a function of the U.S. increasing its oil production. We are much less vulnerable to outside influences.” West Texas Intermediate futures jumped more than 14%, notching its biggest one-day gain since 2008 . WTI briefly rose more than 15% overnight. The sharp move higher comes after a series of drone strikes on Saturday knocked out about half of Saudi Arabia’s d