Thread: Interesting moment for the US Stock/Share Market

everybody is stroking themselves over the idea that china has not slowed down

Wall Street: S&P 500 and Nasdaq hit record highs, driven by strong corporate earnings



Climbing to new records

In US markets, the Dow Jones index added 145 points, up 0.6 per cent, to 26,656 — about 1 per cent away from regaining its record closing figure.
Meanwhile, the S&P 500 closed 0.9 per cent higher at 2,934, while the tech-heavy Nasdaq jumped 1.3 per cent to 8,121 — their highest ever levels.\


The S&P has risen 17 per cent so far this year, with help from a dovish Federal Reserve and hopes of a US-China trade resolution, as well as the upbeat start to the first-quarter earnings season.


Twitter shares surged 16 per cent after the social media company reported quarterly revenue that beat market expectations.
Its executives said it was a result of weeding out spam, fake accounts and abusive posts, while having better targeted advertising.
On average, profits of S&P 500 companies are still expected to decline 1.3 per cent in the first quarter, in what analysts say could be the first earnings contraction since 2016.


Hasbro shares rose 14.2 per cent after the toymaker reported a surprise quarterly profit.

Coca-Cola rose 1.8 per cent after its quarterly sales beat estimates, helped in part by strong demand for Coke Zero.
Procter & Gamble Co fell 2.7 per cent, and was the biggest drag on the market after reporting a decline in its third-quarter operating margin.


Here

So it might go up.

Or down.

Or stay the same.

Originally Posted by David48atTD

The S&P has risen 17 per cent so far this year, with help from a dovish Federal Reserve and hopes of a US-China trade resolution, as well as the upbeat start to the first-quarter earnings season.

and wetness in the fork over the idea of negative interest rates

blogs.imf.org/2019/02/05/cashing-in-how-to-make-negative-interest-rates-work/

Many central banks reduced policy interest rates to zero during the global financial crisis to boost growth. Ten years later, interest rates remain low in most countries. While the global economy has been recovering, future downturns are inevitable. Severe recessions have historically required 3–6 percentage points cut in policy rates. If another crisis happens, few countries would have that kind of room for monetary policy to respond.

To get around this problem, a recent IMF staff study shows how central banks can set up a system that would make deeply negative interest rates a feasible option.

Originally Posted by baldrick

the idea of negative interest rates

Having to pay for the money you deposit with them and getting paid for borrowing from them. How could that go wrong..

Every recession has followed an inverted yield curve. But every inverted yield curve has not been followed by a recession.

It's not that reliable an indicator.

Historically these two are in sync with each other.

One or both are out of sync, hedge or gamble accordingly.



https://www.zerohedge.com/news/2019-...s-are-tumbling

As Bloomberg puts it, the fundamentals are fine, but this yield curve nonsense gets people behaving in a manner which ends up creating a recession when there is no need for one.