Semiconductors are coming off their worst week since January. Micron (MU) earnings was a key reason why the group was under intense pressure. MU posted a decent third quarter as results were in line with expectations. The problem was with the guidance. The company forecast revenue of approximately $7.2 billion for Q4 (Aug). This was…
Walmart and Target put market participants on notice a couple of weeks ago. Supply Chain issues remained a major headwind for the industry. Adding to the degree of difficulty was a change in consumer behavior. The products companies ordered eight weeks in advance were no longer in demand. This meant a build-up of inventory which…
Strategic Optionality means being able to move beyond basic scenarios. In the case of Robinhood shareholders, there may be recourse to stem the tide on a stock that is down 75% from its August IPO price and 90% from its all-time high. Shares of the online trading provider jumped 14% after Bloomberg published an article…
Last week, the bulls were finally able to establish an advantage. Extreme levels of bearish sentiment suggested that most sellers already left the building. Buyer climbed out from under their desk and started to nibble. This week will be important for bulls to hold these gains. There are a few key factors with regards to…
The housing market has enjoyed an incredible run. Low inventory levels and a mass migration from urban cities to the suburbs led to double-digit increases in home prices. Homebuilders are scrambling to meet the intense consumer demand. Unfortunately, supply chain issues made the process a little more difficult. Now, prices are no longer climbing higher…
The World Health Organization (WHO) will vote on whether to declare monkey pox a public health emergency- the WHO’s highest alert- this week. On June 8, WHO Director-General Tedros Adhanom Ghebreyesus cautioned that the window to contain the global outbreak may be narrowing. A public health emergency of international concern is a warning for governments…
Desperate times call for desperate measures. In a surprising move, Germany announced it would restart coal-fired power plants and offer incentives to companies to curb natural gas consumption. The move comes following news last week that Russia curbed some of its natural gas exports to the country. Russian energy giant Gazprom said the natural gas…
Market Recap Markets endured its worst week since March of 2020. The move comes as we exit the artificial world of predictable massive liquidity injections. The S&P tumbled -5.8%, while the Dow and Nasdaq both declined -4.8%. The Dow fell below the 30,000-psyche level for the first time since January of 2021. Small caps were…
Market participants breathlessly awaited the latest Fed Decision. A white-hot CPI report last Friday had markets abuzz. Would Powell & Company move ahead with the predicted 50 basis point rate hike or would it ramp up its effort to stamp down inflation with a sharper increase? The Fed floated a trial balloon on Monday when…
Early Market Thoughts Blood on the streets to kick off another busy week in the markets. The Fed looms as the major story for markets. We have seen faith in the Fed’s ability to battle inflation wane. This has knocked markets off a potential basing pattern that started to form and lead to a fresh…
