Entries by Tom 2

When a Normal Correction Becomes Something More

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When a Normal Correction Becomes Something More The market needs to pause/correct in the near future, but even if we get a decent correction (say > 5%), unless it invalidates one or more of the 4 core reasons stocks have rallied for 2+ years (what I call the 4 pillars of the rally), then it’s […]

A Look at the Economy 7.7.14

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Last Week The most-important thing that happened last week was that the June jobs report and the June ISM manufacturing and non-manufacturing PMIs further implied the US economy is close to achieving “escape velocity” (meaning ending the era of around 2% GDP growth). Other than the obvious (that an accelerating economy is good for stocks), […]

Your Weekly Economic Cheat Sheet – 7.7.2014

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Last Week The most important thing that happened last week was that the June jobs report and the June ISM manufacturing and non-manufacturing PMIs further implied the US economy is close to achieving “escape velocity” (meaning ending the era of around 2% GDP growth). Other than the obvious (that an accelerating economy is good for […]

June ADP Employment Report

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APD Employment Report Non-Farm Payrolls surged 281K in June vs. (E) 213K Takeaway Yesterday’s ADP employment was far better than analyst expectations of just 213K. While the May data were left unrevised at 179K. Stock futures spiked up to session highs upon release of the report but quickly pared those gains as again buyers seemed […]

Australian Dollar Continues Lower

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Most currencies were driven by economic data yesterday. The Dollar Index drifted slightly higher off the decent June ISM manufacturing PMI (up +0.06%) while the euro was slightly weaker (down -0.12%) after mixed manufacturing PMIs (they generally met expectations but the euro has seen a big rally lately). The Aussie was the best performer vs. […]

Update on the Conflict in Iraq

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Iraq Update Iraq has deteriorated a bit this week and the inability of the Iraqi Parliament to choose a new PM weighed a bit on stocks late yesterday.  Before reading the particulars, keep in mind there are two negative scenarios in Iraq for the markets.  The first is that ISIS gets south of Baghdad and […]