Capital expenditures help increase productivity, and improved productivity is the foundation upon which developed economies can sustain higher growth rates. Recent data, some of which we highlighted yesterday, continue to confirm that we might be seeing a rebound in capex, but how can we know it’s sustainable? Continue reading →

Capital spending is accelerating while several tailwinds are only just starting to kick in. Capital expenditures (capex) are being supported by several factors, including booming earnings, corporate tax cuts, immediate expensing of capital investments, repatriation of overseas cash, strong business confidence and deregulation. Continue reading →

US: S&P 500 Index +0.0%, Dow -0.9%, Nasdaq +1.3%
Europe: STOXX Europe 600 +1.0%, German DAX +1.9%, France CAC 40 +1.0%, U.K. FTSE 100 +1.1%
Asia: Japan Nikkei +0.7%, China Shanghai Composite -1.5%, Korea KOSPI  -1.9%
Global/Regional: MSCI ACWI +0.1% MSCI EM -0.9% MSCI EAFE +0.2%
Rates/Commodities: 10-Year Treasury yield -2 basis points to 2.92%, WTI crude oil -1.6%, COMEX gold -1.4%

Major U.S. indexes went their separate ways this week as the S&P 500 Index (flat), Nasdaq (rose), and Dow (fell) all reacted differently to a plethora of headline-generating events. Continue reading →

The Federal Reserve (Fed) raised the fed funds target rate 25 basis points (0.25%) to a range of 1.75-2.00%, but that wasn’t news since the market knew it was coming; nor was the increase in median dot plot, which now suggests members expect four hikes total in 2018 instead of three. So what wasn’t expected? Continue reading →

This month, the U.S. economic expansion officially turns nine years old. Last month, it topped what was the second-longest expansion in the 1960s, with only the record 10-year expansion from the 1990s standing in the way. Continue reading →

US: S&P 500 Index +1.6%, Dow +2.8%, Nasdaq +1.2%
Europe: STOXX Europe 600 -0.5%, German DAX +0.3%, France CAC 40 -0.3%, U.K. FTSE 100 +0.0%
Asia: Japan Nikkei +2.4%, China Shanghai Composite -0.3%, Korea KOSPI  +0.5%
Rates/Commodities: 10-Year Treasury yield +4 basis points to 2.94%, WTI Crude Oil -0.3%, COMEX gold +0.4%

Major U.S. indexes advanced this week, though gains came on the heels of few notable catalysts. Along the way, however, both the Russell 2000 Index and Nasdaq posted new record highs after upbeat data on the services sector followed up last week’s better-than-expected reads on employment and manufacturing. Continue reading →

June has historically been a bland month for the stock market; however, using seasonal analysis may help add some spice to portfolios in an otherwise lackluster time period for U.S. equities. Continue reading →

What a year 2018 has been for small caps. With the Russell 2000 Index up about 6% year to date versus the S&P 500 Index up only 2%, it has been quite the year so far for small companies. Continue reading →

US: S&P 500 Index +0.3%, Dow +0.2%, Nasdaq +1.1%
Europe: STOXX Europe 600 -0.9%, German DAX -1.1%, France CAC 40 -1.3%, U.K. FTSE 100 -0.8%
Asia: Japan Nikkei -2.1%, China Shanghai Composite -1.6%, Korea KOSPI  +0.0%
Rates/Commodities: 10-Year Treasury yield -8 basis points to 2.99%, WTI crude oil -5.2%, COMEX gold +0.9%

U.S. equities recovered most of last week’s losses, thanks in large part to early-week advances spurred by reports of thawing trade tensions between the U.S. and China. Day-to-day movements in major indexes were choppy, however, amid subsequent reports that the U.S. is failing to secure meaningful concessions in its efforts to balance trade between the two nations. Continue reading →

As Britain’s painfully complex break from the European Union (EU)—commonly referred to “Brexit”—continues to be worked out, a royal union is coming together over the weekend as Prince Harry and Meghan Markle will wed on Saturday, May 19, 2018 at Windsor Castle in England. The couple’s decision to wed on a Saturday goes against tradition, as royal weddings usually take place on a weekday. Continue reading →