Economic Journal - Friday, 4/29/2016

(As of 7:25am PST)

As we close out the month of April, the major plays on the market continue to be earnings reporting, global economic news and news on economic stimulus. Yesterday the markets sputtered at the opening on news that the Bank of Japan’s Central Bank didn’t offer any positive stimulus which took everyone by surprise. As the day wore on the markets seemed to gain a little traction but tanked in the final hour largely because of comments made by influential investor Carl Icahn who said he was selling out of his entire Apple holdings due to concerns about China’s policies potentially hurting Apple’s presence there. The Dow closed down more than 200 points yesterday and Apple continues to struggle after their poor earnings showing earlier in the week. It hasn’t been all bad news on the earnings front this week as Amazon, LinkedIn Corp. and Expedia all blew through expectations with stellar reports.  Amazon is surging after reporting its fourth consecutive quarter of profitability. On the economic reporting front, personal income and spending missed expectations in March which may raise concerns that second quarter growth might disappoint. The PCE price index is the Federal Reserve’s measure of inflation which in turn determines what they may do with interest rates later this year. Europe and Asia are both limping into the weekend with red across the board. 

Note: Make sure to visit our updated website at www.millerfinancial.biz where you will also find our blog. The new website will give you easy access to our blog as well as enhanced tools such as financial calculators, appointment scheduler, access to our newsletter and links to other financial websites.

Economic Journal - Thursday, 4/28/2016

(as of 7:00 AM PST)

Global financial markets shuddered overnight after the Bank of Japan's Central Bank did nothing! The lack of a positive stimulus boost caught almost everyone by surprise and markets reacted violently, similar to the 'taper tantrum' we saw in the fall of 2014 when the US Central Bank went against investor expectations.  It is telling and has to give each one of us pause that markets are so unhinged that they react to the frivolous act of doing nothing.  It seems to indicate that we are in a stratosphere of thin air awaiting a minor episode which will put markets into a tailspin when we least expect it.  US markets are recovering from what looked like an initial opening plunge and are sporting minor losses, reflecting the fact that most corporate profit reports overnight beat expectations.  Oil and precious metals are benefitting from the turmoil, both up on the day.  International markets took the brunt of the decline, with Japan's Nikkei down 3.6%.  Other Asia markets and Europe are trying to recover from the initial plunge and, like the US, are rapidly looking at the Japan episode in the rear view mirror.  The star of earnings season thus far has to be Facebook, which saw profits triple.  That stock is up 11% in early trading.  This stock market has been incredibly resilient in light of potential negatively negative news but investors are becoming more skeptical that it can hold these levels.

Economic Journal - Wednesday, 4/27/2015

(As of 7:20am, PST)

The markets are wavering but not tumbling after Apple, the largest company by market value, reported disappointing results from their earnings report after the closing bell yesterday. In the early going, the Dow is down 35 points while the S&P500 is down 3.5 points. Apple reported fiscal second quarter revenue and earnings results below analyst’s already lowered expectations. Apple’s revenue fell 13% for the quarter, its first decline in 13 years. The market’s current response to Apple’s report indicates that investors may view Apple’s shortcomings as more company specific rather a sign of a broader market weakness. Other companies reporting yesterday were Chipotle which reported a smaller than expected quarterly loss and Twitter who reported disappointing quarterly revenue. Another potential market mover today is a policy announcement from the Federal Open Market committee this afternoon which may hint at a possible rate increase in June. Many experts believe that the Fed will leave the possibility of a rate hike in June on the table with an attempt to communicate this in a way that won’t cause a negative impact on the financial markets. Rising oil prices may be giving the market a boost today after a positive report that showed a draw down in inventories. In other economic news, the housing market continues its strong showing with pending home sales rising to a 10 month high in March. European stocks are trading higher while Asia closed lower.

Note: Make sure to visit our updated website at www.millerfinancial.biz where you will also find our blog. The new website will give you easy access to our blog as well as enhanced tools such as financial calculators, appointment scheduler, access to our newsletter and links to other financial websites.