Big Glitch in Markets as Inflation Tops 4% and Treasury Yields Climb
Market Analysis by covering: Crude Oil WTI Futures, Argan Inc, 10 Year Treasury Yield. Read 's Market Analysis on Investing.com
Big Glitch in Markets as Inflation Tops 4% and Treasury Yields Climb Market Analysis by covering: Crude Oil WTI Futures, Argan Inc, 10 Year Treasury Yield. Read 's Market Analysis on Investing.com Gold prices edge higher amid dip-buying, positive comments from Fed’s PowellThe biggest glitch now impacting financial markets is that both food and energy inflation have been soaring based on the Producer Price Index , as well as the highest imported prices in four years. The March figures for food and energy inflation are expected to be hideous, so many economists are now anticipating over a 4% annual pace of. This has already influenced Treasury yields after lackluster bid-to-cover ratios at a recent Treasury auction. Due to this inflation “bubble” and higher Treasury yields, hopes for more Fed key interest rate cuts have been squelched.to cut key interest rates sooner than later, despite the food and energy bubble that has emerged. Fed Chairman Jerome Powell is speaking at Harvard University this week, and it will be interesting if he is still talking about how the private sector has stopped creating jobs and if the Fed will have to cut key interest rates to stimulate the job market. Due to the fog of war, there are a lot of things that can go wrong, and many investors want to remain on the sidelines. It has always been my experience that the stock market resurges when war concerns diminish. Fundamentally superior stocks bend but do not break because of their strong underlying forecasted sales and earnings growth. As an example, on a day when the Dow Industrials declined 793 points,surged 37.91% after announcing that its fiscal fourth quarter sales rose 12.7% to $262.1 million compared to $232.5 million. During the same period, the company’s earnings rose 56.3% to $49.2 million or $3.47 per share compared to $31.4 million or $2.22 per share. The analyst community was expecting sales of $255.3 million and earnings of $1.98 per share, soposted a 2.7% sales surprise and a 75.3% earnings surprise. Since Argan is a data center-related stock, it is now helping to lift other data center stocks that continue to exhibit relative strength. In case it is not obvious yet, the U.S. is expected to control world energy markets with its influence on Caribbean, North American, and now Middle Eastern energy producers. Lowering energy prices in the U.S. is imperative to President Trump after windfall profits for many LNG, natural gas, refineries, and crude oil producers. Due to an anticipated glut of crude oil in the upcoming months, I am reluctant to add many energy-related companies, except for tanker stocks, unless the analyst community dramatically boosts their forecasted earnings. In conclusion, the U.S. is the economic growth engine of the world, and international investors are expected to continue to gravitate to the U.S. due to stronger GDP growth as well as an improving U.S. dollar.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes.and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website. It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
Source: Head Topics
Comments 0