Good MorningEquity markets have peaked, and the correction is on. The market has begun to reprice itself on the idea that the FOMC will not cut rates this summer or possibly this year and is heading for lower price points. The caveat for the bears is that the economic data is still solid, sustaining inflation and S&P 500 earnings growth. The downturn may not be over, but a sustained downtrend is unlikely.
Today's NFP news may accelerate the sell-off. The NFP is expected to show solid gains, low unemployment, and rising wages in alignment with labor market health and high inflation. The takeaway is that solid labor markets are a sign of economic health, and one of the Fed's two mandates is met with no signs of weakness, leaving them to focus on the problem at hand: inflation.
Because the FOMC has rates at historically high levels, it has ample ammunition to stimulate the economy with policy and is unafraid of recession. The committee can step in and prop up the economy at the first signs of trouble, which means the Fed Put is in place. Today's downturn will soon turn into a buying opportunity. Featured: American manufacturing to leave China? (Paradigm Press) 
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Markets | | | Investors often follow the latest trends in the U.S. economy and attempt to align their portfolios with the best industries, some of which could have a breakout in the coming months. The construction industry is one example, as the ISM Manufacturing PMI index and its cousin, the ISM Services PMI ind... Read the Full Story >> |
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Markets | | | George Dayton founded the Dayton Company in 1902 laying the groundwork for what would eventually become the Target Corporation. However, the first Target (NYSE: TGT)location didn't open until 1962. The idea was to open a low-priced alternative to mainstream retail with higher-quality products than c... Read the Full Story >> |
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Stocks | | | Trading activity is a sure sign that stock price will move; the question then becomes, which direction will it take? While trading volume is a sign of market interest, it never tells you if the bulls or the bears are active. That knowledge comes from other factors, including fundamentals, market o... Read the Full Story >> |
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Markets | | | With consumer spending and sentiment on the upswing, the Consumer Discretionary Select SPDR ETF (NYSE: XLY) emerges as a potentially promising investment avenue. Its relevance in the current economic landscape cannot be overstated. The latest report from the Commerce Department in March indicated... Read the Full Story >> |
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Markets | | | Estée Lauder Companies, Inc. (NYSE: EL) is among an increasingly smaller group of stocks that have yet to mount a serious comeback to recent selloffs. Having gained more than 200% from January 2019 through January 2022, investors in the cosmetics giant then gained a harsh lesson in gravity.&n... Read the Full Story >> |
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From Our PartnersHe Exposed a Fake "Market Miracle" and Paid With His Life
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Markets | | | The inflation that has squeezed European shoppers fell more than expected in March to 2.4%, as cost spikes in the grocery aisle eased and overall price rises headed down in the two biggest economies, Germany and France. The annual figure for the 20 countries that use the euro currency came in below ... Read the Full Story >> |
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Markets | | | Global shares mostly declined Friday as investors looked to a key U.S. jobs report due later in the day to gauge the health of the economy and see what the Federal Reserve might do on interest rates. France's CAC 40 declined 1.3% in early trading to 8,042.05, while Germany's DAX slipped 1.4% to 18,1... Read the Full Story >> |
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Markets | | | The American economy is thought to have added 200,000 jobs in March — a more-than-respectable increase though one that would mark a slowdown from February's vigorous gain of 275,000 and last year's monthly average increase of 251,000 Read the Full Story >> |
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Markets | | | Donald Trump left the White House facing a cash crunch and a tattered reputation after his attempts to overturn the 2020 election, threatening the viability of his business empire. Soon, though, a new source stepped forward to provide a financial lifeline when many longtime lenders refused.Over the ... Read the Full Story >> |
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Markets | | | Federal Reserve officials will likely reduce their benchmark interest rate later this year, Chair Jerome Powell said, despite recent reports showing that the U.S. economy is still strong and that U.S. inflation picked up in January and February Read the Full Story >> |
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