Feb 24, 2020
See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week free trial to Bespoke Premium. CLICK HERE to learn more and start your free trial.
Global equities are in a bit of a free-fall this morning on rising concerns over the spread of the coronavirus. While the pace of the outbreak certainly appears to be slowing in China, flareups in South Korea and Italy over the weekend are causing increased concern of a global spread including here in the US. As of now, there have only been 35 confirmed cases in the US, but it’s hard to imagine that number not rising. Besides the coronavirus fears, the strong performance of Bernie Sanders in Nevada over the weekend isn’t helping sentiment for the market either.
Read today’s Bespoke Morning Lineup for the latest on the impact of the coronavirus, the results of the Nevada caucuses over the weekend, and the impact of the coronavirus on supply chains.
Feb 21, 2020
See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week free trial to Bespoke Premium. CLICK HERE to learn more and start your free trial.
It’s looking like another negative end to a week as investors don’t want to make any major moves heading into a weekend where there’s the potential for more negative headlines related to the coronavirus. Gold is on pace for its 11th positive day in the last 12, while the 10-year yield drops below 1.5% to its lowest levels since last September.
Read today’s Bespoke Morning Lineup below for the latest on the impact of the coronavirus, the rare simultaneous rally in the dollar and gold, European economic data, and diverging performance of European equities from the perspectives of US and European investors.
US markets look set to continue their pullback from overbought levels as we close out the week. Over the last five trading days, most sectors have pulled back within their trading ranges, and in the majority of cases, we’ve seen a move from overbought to less overbought levels. Energy is the only sector below its 50-DMA (it is also the only sector that is oversold). Meanwhile, the Consumer Discretionary sector remains at extreme overbought levels, while Real Estate isn’t far behind.
Despite the lackluster market performance this week, overall US stock market performance this year yeas been strong. Energy and Materials are the only two sectors that are down YTD while five sectors are up over 5%, including Technology which is already in the double-digit percentage range, and Utilities which is up just over 9%.
Feb 20, 2020
See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week free trial to Bespoke Premium. CLICK HERE to learn more and start your free trial.
Wow! That was an impressive print in the Philly Fed Manufacturing report. While economists were expecting the headline index to come in at a level of 11.0, the actual reading was more than triple that at 36.7. While the Philly Fed report tends to be volatile, this morning’s release was the strongest relative to expectations going back to at least 1998! Not only that, but the actual level of the index is also one of the strongest readings we have seen since the mid-1990s. Jobless Claims were also strong coming right in line with expectations at a level of 210K. So, how many cuts was the market pricing in?
Read today’s Bespoke Morning Lineup below for the latest on the impact of the coronavirus, the major shift in betting markets following last night’s Democratic debates, earnings data out of Europe, and the latest credit growth figures out of China.
As fears over the coronavirus start to ebb, Chinese stocks have been on a tear. Since reopening from the Lunar New Year holiday earlier this month, the Shanghai Composite has rallied more than 11% and actually closed last night above where it finished heading into the holiday. There has been a consensus among investors that the impact of the coronavirus would be transitory, but we’re not sure anyone expected all of the post-New Year declines to be erased in just three weeks!
Feb 19, 2020
See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week free trial to Bespoke Premium. CLICK HERE to learn more and start your free trial.
Housing data continues to show a strong foundation as this morning’s reports on January Housing Starts and Building Permits both exceeded expectations by more than 100K! The last time both reports exceeded expectations by more than 100K was last August’s report. Before that, though, you have to go back more than 10 years to find the next occurrence. That was the good news. The bad news was that PPI also exceeded expectations by a wide margin with the highest reported reading (0.5%) since October 2018. Futures haven’t budged much on the news, though, and are still indicating a positive open of about 0.25%.
Read today’s Bespoke Morning Lineup below for the latest on the impact of the coronavirus (including an important milestone in reported cases), earnings data out of Europe, and Japanese trade data.
We’ve been highlighting the bullish pattern in the price of gold for several weeks now, and after bouncing at support in the prior couple of weeks, prices broke out overnight to their highest levels in about seven years. With price convincingly above the $1,600 level, look for that psychological level to provide support going forward.
What’s interesting about the recent rally in gold, and as we discussed in last night’s Closer, the current rally has coincided with a stronger dollar, which overnight rallied to its best levels since last summer, so it’s not a weaker dollar that’s causing the recent rush into gold.
Feb 18, 2020
See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week free trial to Bespoke Premium. CLICK HERE to learn more and start your free trial.
Investors are returning from the three-day weekend in a bad mood after Apple (AAPL) announced that revenues for the quarter will be weaker than expected due to the impact of the coronavirus on both production and demand. The stock was trading down over 3% on the news, but analysts rushed in to defend it and it is now trading down less than 2%. Our favorite headline of the morning was the following in all caps on Bloomberg, “APPLE PREANNOUNCEMENT BETTER THAN EXPECTED.” A better than expected warning. Can’t say we see that often!
In other news, Wal-Mart (WMT) marked the unofficial end to earnings season this morning with a weaker than expected report. While the stock was initially lower, it has rebounded and is now indicated to open up about 1%.
For a recap of all the latest on the coronavirus, earnings, and economic data, check out today’s Morning Lineup.
Even though earnings season unofficially winds down this morning, there’s still quite a lot of other reports to come in the coming two weeks. As shown in the snapshot from our Earnings Explorer below, there are still some days where more than 100 companies will report on a given day. We would note, however, that most of these companies are small in scale.
As far as the results of this past earnings season are concerned, the main takeaway from this earnings season is the improvement in revenues relative to expectations. As shown in the lower right chart below, 61.2% of companies have topped sales forecasts in the last three months, and that’s the highest percentage of beats since early 2019.
Feb 14, 2020
See what’s driving market performance around the world in today’s Morning Lineup. Bespoke’s Morning Lineup is the best way to start your trading day. Read it now by starting a two-week free trial to Bespoke Premium. CLICK HERE to learn more and start your free trial.
As shown below, the US equity market is entering the trading day in overbought (but not quite extreme) territory:
For a recap of all the latest on the coronavirus, earnings, and economic data, check out today’s Morning Lineup.
