January’s jobs report was stronger than expected. Payrolls rose the most in more than a year and the unemployment rate unexpectedly fell even with an increase in the Labor Participation Rate (LPR). The report suggests that the labor market is find its footing after a year of nominally rising unemployment and minimal hiring. Has the … Read more
Retail sales unexpectedly stalled in December, suggesting consumers provided less fire power to the economy as the year drew to a close. The data indicated that there are signs discretionary spending is less robust for lower income Americans, the result of a higher cost of living that may not be accurately measured in the data. … Read more
The NASDAQ is spooked by the massive amounts of monies the four largest technology companies– GOOG, AMZN, META and MSFT –are planning to spend on AI infrastructure. According to Bloomberg, these four companies have projected 2026 AI capital expenditures at around $650 billion up from about $365 billion in 2025 and up from the initial … Read more
The NASDAQ has experienced its worst three-day rout since the April 2025 tariff induced selloff. The broader market, however, has advanced. Bit coin continued its decent falling to the lowest levels since October 2024. Its value has been almost cut in half since October. Silver fell another 13%. Unlike in April, there is no obvious … Read more
Will the upcoming earnings releases from mega tech GOOG and AMZN stem the slide in Magnificent Seven and the technology/software sector? The NASDAQ declined another 1.5% while the broader market held steady. Is there any correlation between the continued rout in bitcoin to the tentative rotation out of tech? Bitcoin fell another 3% yesterday with … Read more
Led by the software companies, the NASDAQ fell about 1.5%. A narrative is beginning to emerge that AI will begin to replace software. Is this a realistic concern? Bloomberg writes that of the software companies that have released results, 67% have exceeded expectations. That compares with 83% for the overall tech sector. Will this narrative … Read more
Equity markets were bolstered by optimism in the manufacturing sector which unexpectedly expanded in January by the fastest pace since 2022. The data surpassed all estimates provided by Bloomberg. A 10-point increase in a gauge of new orders was a major reason for this reading. Order backlogs expanded for the first time since 2022 while … Read more
The carnage in the gold and silver market is incredible. Spot gold in having its worst selloff since 1983. Silver’s plunge is the worst since “the late 1960s” if not on record according to Bloomberg. The accepted catalyst was a rebound in the dollar and the planned nomination of Kevin Warsh as FOMC Chairman. The … Read more
Bloomberg estimates four companies (AMZN, META, GOOG, MSFT) will spend $505 billion on AI capital expenditures for 2026, up from an estimated $366 billion in 2025. Wall Street is growing increasingly concerned about the ability to generate profits from all this AI cap ex, expenses that are started to viewed as a large potential risk. … Read more
No change in monetary policy is expected at the conclusion of today’s FOMC meeting. The vote is expected to be uneventful, lacking the drama of past meetings. The markets are suggesting the next interest rate reduction may be in June, followed by another at the end of the year. This outlook is in direct contrast … Read more
