Market Analysis

Seasonal Pattern Ahead Preface You can feel it in the air. The enthusiasm has slowed down this week. All major US stock indexes seem to have hit a wall, with the Dow Jones holding up the strongest. So is it time to finally get more defensive toward the market and take less risk and hold…

Weekly Review + Charts The Federal Reserve hiked rates to the highest in 22 years on Wednesday, to the range of 5.25-5.50%. Despite that, stocks continued to advance and the Dow Jones logged its thirteenth straight green day in a row. Over that span it grew a whopping 5.75%. This streak of gains was the…

What to Expect Preface In a week devoid of meaningful economic data in the US, stocks had room to move higher out of the gate. Earnings reports from Tesla and Netflix were able to cool the rally on Thursday, as the Nasdaq gave back more than 2% of its recent gains. Now the focus shifts…

Markets Still See July Hike This week’s report revealed CPI inflation for June dropped to 3.0%, which was lower than the consensus of 3.1%. Core CPI, which excludes the more volatile factors of food and energy, fell to 4.8% vs the expected 5.0%. This is the first time since December 2021 that Core CPI has…

Equities Continue to Shine Preface As discussed in the last issue, this week’s FOMC minutes release was a non-event and we learned nothing new other than some participants had favoured a June hike instead of July. The rest was a reiteration of previously disclosed hawkish sentiments around higher rates for longer with a moderation in…

Equities on Fire Preface On Friday, equities were lifted again to new highs as we got more good news on the inflation front. Core PCE fell from 4.7% to 4.6% in May, and the PCE deflator plummeted to 3.8% from 4.3% prior according to the U.S. Bureau of Economic Analysis. Although expectations held firm for…