Salient to Investors: 70 percent of S&P 500 companies have beaten analysts’ estimates this quarter. Dow fluctuations this year are the smallest in an election year since 2004, and less than the 112-year average when the incumbents won (13 of 17) and lost (6 of 11). Volatility declines indicate less concern that prices will
READ MORE... →Salient to Investors: Eugen Weinberg at Commerzbank predicts Brent crude will rebound toward $110 a barrel this month, and says the oil markets prefer Obama. Morgan Stanley said Brent will remain in a range of $105 to $110 as higher refinery runs offsets global economic risks. Ken Hasegawa at Newedge Group said we have plenty of crude worldwide,
READ MORE... →Salient to Investors: Unlike Greece, Spain and Britain, the US economy is fundamentally healthy. The US debt problem can be readily resolved as long as both parties compromise. Over the past 5 years, Republicans in the Senate have threatened or used a filibuster 385 times, or almost double the rate
READ MORE... →Salient to Investors: As the housing market recovers, neophyte investors are following the lead of private-equity firms like Blackstone, investing in cheap properties they can rent and sell when values rise enough. Lawrence Yun ar NAR said the typical small-size mom-and-pop investor has two or three properties – about 90 percent of
READ MORE... →Salient to Investors: Economic growth will accelerate in the next four years as the headwinds become tailwinds. Consumers are spending more and saving less after reducing household debt to the lowest since 2003. Home prices are rebounding after falling more than 30 percent from their 2006 highs. Banks are increasing
READ MORE... →Salient to Investors: Jim O’Sullivan at High Frequency Economics said the non-manufacturing part of the economy – the bulk of the economy – is much less weak, while manufacturingis more exposed to weakening foreign growth and exports -overall pretty sluggish growth. Retail Metrics said same-store sales at over 20 companies, excluding drugstores, beat estimates. Americans bought new homes
READ MORE... →Salient to Investors: David Sowerby at Loomis Sayles said earnings continue to surprise on the upside, plus a slight improvement in manufacturing. 71 percent of S&P 500 companies beaten analysts’ quarterly estimates. Darrell Cronk at Wells Fargo Private Bank said the consumer is showing he is willing to jump back in and seek out a job. Thomas
READ MORE... →Salient to Investors: Paul Dales at Capital Economics said today’s increase in the unemployment rate is a sad reminder that the economy is at a virtual standstill. John Ryding at RDQ Economics said if we can produce this kind of job growth with all the uncertainty, imagine if we cleared up tax issues how much
READ MORE... →Salient to Investors: FRB San Francisco President John Williams said: The Fed should continue the MBS purchases into next year and continue the Treasury purchases because we have not seen a sustained, significant improvement in the labor market, such as payrolls growth more than 200,000 jobs a month or a measurable decline in
READ MORE... →Salient to Investors: Michael Althof at Pimco said: Pimco favors inflation protection in Australia and the US as global stimulus stokes faster price increases. Central banks are more willing to risk inflation as a trade-off for growth and employment, and pressure for higher inflation longer-term makes index-linked bonds attractive. Pimco likes Australian bonds
READ MORE... →