Category: Tariffs
Driving Uncertainty
With lawfare driving uncertainty with respect to tariffs and most everything else Trump related. It’s difficult to get fix almost anything. As analysts, investors both foreign and domestic, business owners and our trading partners try to make sense of it all.
MSM Doom and Gloom
Doom and gloom fails to materialize once again after the facts overwhelm the narrative popularized by the MSM. Earnings didn’t go bust, foreign investment remains robust and the hard factual economic data continues to perform reasonably well.
The Sky Didn’t Fall
Despite the MSM doom and gloomers. The sky didn’t fall, and once again the mainstream media narrative proved to be just more misinformation. The major averages completed another solid week. The S&P 500 advanced 5.27%, the NASDAQ jumped 7.15% while the DOW gained 3.41%.
A Positive Return
The major averages finished the week down fractionally. While the major averages remain in the red YTD. They have recovered all of their post Liberation Day losses. The question remains can the markets recover their YTD losses and generate a positive return this year? It usually boils down to earnings.
Another Huge Week
Another huge week for the major averages as the soft data continues to scream recession. While the hard or factual data and the incoming earnings data has another huge week. Since Monday the S&P 500 gained 162 points, the NASDAQ is up 595 points while the DOW jumped 1,204 points.
Tariff Tantrum Fades From Memory
The major averages put the tariff tantrum to rest. With 4 consecutive gains this week. As the major averages closed with impressive gains. Since Monday the S&P 500 increased 242 points or 4.58%, the NASDAQ jumped 1,097 points or 6.74% while the DOW gained 971 points or 2.48%.
Extreme Markets
Extreme markets produce extreme data points. As the total spread between highest and lowest forecast for the S&P, shown in the chart below shows. Since Bloomberg started collecting the data in 2000, the gap has never been so extreme this late in the year.
But Wait, There’s More!
There’s more, S&P 500 earnings estimates are picking up and exceed 10%. Despite continued recession stories from the MSM who continue to push the inflation narrative. Neither is supported by the incoming data. MSM true to form, never let the facts get in the way of a good narrative.
Tariff Terrorists Strike
In my nearly 3 decades in this business this has to rate as one of the worst weeks that I can remember. The S&P 500 lost 9.08%, The NASDAQ plunged 10.02%, while the DOW slipped 7.86%. As the Tariff Terrorists put an exclamation point on a bruising week.