As noted in Wednesday’s commentary, the decline in BEA profit margins will inevitably raise questions around the outlook for equities. Some sectors of the economy will nevertheless stand to benefit…
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It is tempting to dismiss the decline in US equity markets since the July 26th peak (6.0%) as largely just another US – China trade-related correction. So far, the fall…
The increase in non-farm employment (164k) in July was consistent with a strong economy. For sure, there were notable downward revisions to the previous two months (totalling 41k). Furthermore, the…
The latest GDP report was encouraging. Final sales to domestic purchasers jumped by an annualised 3.52% q/q in Q2: the first quarter data was revised up to 1.79% q/q. The…
At current low levels of unemployment, companies face a decision: invest more in capex and software as the cost of labour rises, or retrain workers. Both could happen concomitantly. The…
There is no need for the Fed to cut. Indeed, the FOMC will be impressed by the resilience of the stock market on Friday. The early losses were trimmed as…
It has been a common refrain this year: businesses are deferring capital spending due to uncertainty (trade wars) and a worsening economic outlook (manufacturing). Yield curve inversion implies that markets…
Despite a small (0.46%) dip on Friday, IT stocks put in a strong showing last week, rising 3.32%: IT was only second to energy, where share prices were driven higher…
This current cycle of expansion in the US economy will become the longest on record next month. Friday’s retail sales report suggests there is plenty of fuel left in the…
The May payrolls report appears to have vindicated the dovish bets on a Fed rate cut at its next meeting. The slowdown so far this year has been broad based…
