Thursday may have marked the end to a furious rally by speculative investors and traders as U.S. equity valuations have moved higher contrary to deteriorating economic conditions. Continuing jobless benefits have risen to new record levels as 630,000 more Americans filed new jobless claims in the previous week. Income and outlays decreased more than expected
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While the Swine Flu "epidemic" has stimulated substantial buzz among global equity markets, the lasting effects of the virus on the consumer are limited. The virus is serious and deserves appropriate responses by the WHO and individual nations but has only killed individuals in nations where timely detection and health care response is limited. Cases
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The Chicago Board Options Exchange Volatility Index, commonly known as the VIX, has secured a spot in the limelight as technical traders and six o'clock news broadcasters have religiously cited the measure throughout the unfolding economic crisis. The index is sometimes referred to as the "fear gauge" as it rises during times of increased market
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Speculators placed bets against disease fearful consumers during pre-market trading but confidence re-emerged as markets opened and earnings from Humana (HUM), Whirlpool (WHR) and Corning (GLW) beat estimates. Predictions from most corporations and analysts leading into 2009 Q1 were unrealistically low, causing many firms to beat estimates this earnings season. Each time a major corporation reports another “earnings beat” the confidence of bulls increases parallel to the complacency of bears.
The proof may be in the pudding but the pudding isn’t earnings season… The equity market will show its true colors as it faces hard economic data without “better than expected earnings” contributing to the euphoric aura surrounding current market projections.

The specifications of the stress test were released Friday afternoon, but failed to specify what tangible equity requirements banks must keep on their balance sheets. The regulators have specified that they are adding more stringent parameters to the test that will take into account a 22% decrease in home prices throughout 2009 and an additional
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None were bold enough to put money to work on Monday following the dire Bank of America (BAC) outlook concerning credit cards, mortgage defaults, and capital reserve ratios. The S&P 500 fell more than 4% as equities saw linear destruction across the board. Financial stocks lead the market lower, signaling the shift in disposition from
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Following the pre-market release of earnings from Bank of America (BAC) on Monday, U.S. equity futures were down sharply across the board. BAC reported 2009 Q1 earnings of $0.44 per share compared to $0.23 per share a year earlier and analysts expectations of $0.04. B of A will present the firm's financial situation in a
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Deciphering strength among bank stocks ahead of Citi Group (C) Q1 earnings on Friday can be complicated. The sector has increased 45% over the past five weeks inspiring some to call for financials to pull back. Positive earnings news from WFC, GS and JPM have maintained positive sentiment amidst rhetoric from CEO's suggesting further pain ahead on
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Worse than expected housing starts, better than expected jobless claims, better than expected Philly Fed Survey, worse than expected Nat Gas Inventories. The churn of Economic data can be exhausting for both "home gamers" and pros.  The only clear facts are that economic conditions are "worsening", regardless of whether or not they are worsening at
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As we finally mailed our checks to Uncle Sam and shed the stress of tax season, Wednesday brought a considerable slew of data to U.S. traders' desks. The Consumer Price Index (CPI) reported slight deflationary price pressure while the level of production in the U.S. dropped further than analysts' estimates during the month of March.
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