Earnings Seasons/Economic News/Tiger
Corporate Earnings kick off this week! I think this may be where the “rubber hits the road”, as we’ll view first Quarter 2019 performance, along with guidance for the remainder of the year.
It’s been interesting watching the Market melt up over the last several weeks, anticipating Corporate results will be ok and a tariff solution with China will happen sooner than later.
Last week there was a lot of Market movement, however, not a lot of change by weeks end. For the week, the Dow was virtually flat loosing (.05%). The S&P 500 and the Nasdaq Composite both rose slightly over .50% and the Small Cap Russell 2000, up a slight .14%.
The yield on the 10 Year US Treasury bond increased to 2.57%, up from 2.49% the week prior.
Over the pond, the Equity Markets were higher with the MSCI EAFE International Index rising .29% and the Emerging Market Stock Index rose .41%
Last Week in the Economy
The IMF lowered its forecast for economic growth from 3.5% to 3.3%. They mentioned trade tensions, lower business confidence, tighter financial conditions and policy question marks. Certainly can’t disagree with their rationale; however directions can change quickly, in either way!
Last week, factory orders for February declined .5%, impacted by Commercial Aircraft Orders. That’s certainly not a surprise. The Consumer Price Index increased .04% in March, reflecting higher energy costs. Remember, oil is up over 25% this year! Inflation over the past year has remained fairly constant at 1.9%.
It’s interesting to watch when so much uncertainly is snow-balling; the Stock Market continues to melt higher and higher. We’re now approximately 1% from reaching the all-time high on the S&P 500.
Tigers First Major Since 2005
Several years ago, a young man by the name of Tiger Woods brought the sport of golf into Mainstream America. People who didn’t necessarily like golf would huddle near the TV to watch him win so many “Majors” in grand fashion. Even the likes of Jack Nicholas and Arnold Palmer did not propel golf to the level of popularity as Tiger, back in the day.
Then it happened, marital issues, followed by a slew of back and other injuries that required surgery. For years, Tiger was struggling just to be able to play and then to regain his competitiveness. Many people wrote him off!
Then last weekend happened! Tiger clawed his way to winning the “Masters” for his 5th Green Jacket! I personally am in admiration of this accomplishment over all of his others.
Like Tiger Woods or not, I certainly admire and appreciate his dedication, desire, drive and passion. Good for you Tiger! Good for Golf! Gave me goose bumps, as if I actually needed more motivation!
Question of the Week
The Bond Market: So much has been written over rising and falling Bond Yields. When Yields increase or decrease that can impact the current Market value of your Bond holdings. In the investment world, there is a term that measures how sensitive the Principal of your Bond is to the upward and downward movement in interest rates.
What is the term that measures the approximately price movement of your Bond, as Interest Rates move higher and lower?
a) Term Structure
e) Credit Quality
Answer to Last Week’s Question
The United States is the largest Economy in the world, followed by China. In 2017, which is the latest data available, which country was the 3rd largest?
b) United Kingdom
The answer is –