U.S. stocks were higher in morning trading this morning, but have reversed course and are heading for the unchanged line (SPY +0.15%). Bank stocks gained after data showed that the domestic economy grew at a faster pace.
Here is the current market situation from CNN Money
North and South American markets are mixed. The S&P 500 is higher by 0.12%, while the Bovespa is leading the IPC lower. They are down 0.39% and 0.35% respectively.
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Following a major market correction, the conditions for safe re-entry are when:
a) Daily $OEXA200R rises above 65%
Secondary Bullish Indicators:
a) RSI is POSITIVE (above 50)
b) Slow STO is POSITIVE (black line above red line)
c) MACD is POSITIVE (black line above red line)
(Reuters) - U.S. stocks were higher in morning trading on Thursday as bank stocks gained after data showed that the domestic economy grew at a faster pace in the fourth-quarter than previously estimated.
WASHINGTON (Reuters) - Volkswagen AG said on Thursday it has agreed to pay $157.45 million to settle environmental claims from 10 U.S. states over its excess diesel emissions, as the world's largest automaker looks to move past the scandal.
(Reuters) - The United States on Thursday awarded a contract to AT&T Inc to build a nationwide wireless broadband network to better equip first responders, years after a federal commission recommended setting up such a system following the 9/11 attacks.
FRANKFURT/MUNICH (Reuters) - Linde labor representatives will vote against the German industrial gases group's planned $65 billion merger with U.S. rival Praxair , the head of the German works council told Reuters on Thursday, in a move that could scupper the deal.
LONDON (Reuters) - Saudi Aramco has formally appointed JPMorgan Chase & Co , Morgan Stanley and HSBC as international financial advisers for its initial public offering, sources familiar with the matter told Reuters.
TAIPEI (Reuters) - Chinese tech conglomerate LeEco has successfully raised nearly $2.2 billion from new investors including Tianjin Jiarui Huixin Corporate Management Company and property developer Sunac China Holdings , stock market filings on Thursday showed.
Is the Trump trade alive or dead: that is the question Bank of America analyst Savita Subramanian tries to answer in a report overnight, in which she notes that it is not one Trump trade but several, and they tend to be "harder to isolate."
She notes that while stocks continued to make new highs through February, market leadership has shifted dramatically compared to what we saw immediately following the election. In the initial month after the election, the rally was led by small caps, cyclicals, Value, low quality and beta. But since early December, those leaders have turned into laggards. An examination of the performance of the potential beneficiaries of the new administration's policy proposals paints a similar story, with the performance of most of the initial policy winners peaking in early December and subsequently underperforming.
In short, it is not one Trump Trade, but many, and in the span of the past 5 month, they have mutated.
What have been the main changes?
As shown in the charts below, the market still believes in infrastructure reform, less so in tax reform. While stock beneficiaries of various aspects of Trump's proposed policies mostly peaked in December, some groups have held onto their initial gains better than others. In particular, beneficiaries of domestic infrastructure spending have outperformed by 7ppt since the election, while beneficiaries of lower tax rates have outperformed the average Russell 1000 stock by 4ppt. This suggests that the market still holds onto the belief that we will ultimately see the passage of an infrastructure spending bill and corporate tax r ...
Below looks at the performance of the S&P 500 Sectors, looking back 5-years. The winner for the lowest performance is the Energy Sector (-1.42%). XLE is lagging the S&P 500 by almost 70%, in just 5-years. "Time for them to rally?
The third estimate of fourth quarter 2016 Real Gross Domestic Product (GDP) was revised upward to 2.1 %. This improvement was mainly due to significant upward revision to personal consumption expenditures for services and inventory levels - but with headwinds from trade and government spending
Propelled by the large Snap Inc. offering in early March, the first quarter of 2017 saw almost 15 times more proceeds than the first quarter of 2016, according to Renaissance Capital, a manager of IPO-focused ETFs.
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