Q: What is the significance of current corporate profit projections between now and 2024?
A: Corporate earnings are predicted to rise significantly over the next 18 months.
Q: Is there now more trouble ahead for the U.S. banking system?
A: By stepping in to backstop all deposits, instead of $250k FDIC limit, at the 2 failed banks the likelihood of contagion Bank Runs appears averted.
Q: Will the Federal Reserve (Fed) reverse course regarding interest rate hikes?
A: By guaranteeing all deposits to Silicon Valley Bank and Signature Bank The Fed is providing liquidity instead of tightening.
Q: What can the recent movement in U.S. Treasury yields tell us about 2024?
A: The Yield Curve Inversion, combined with the drop in yields this week appear to indicate a return to more normal interest rates next year.
SPDR S&P Regional Banking ETF (03/17/2022 – 03/17/2023)
– Courtesy of Bloomberg LP
First Republic Bank/CA (03/17/2022 – 03/17/2023)
– Courtesy of Bloomberg LP
Comerica Inc., Cullen/ Frost Bankers Inc., Texas Capital Bancshares Inc. (03/17/2022 – 03/17/2023)
– Courtesy of Bloomberg LP
CBOE Short-Term Interest Rate Index, CBOE 10 Year Treasury Note Yield Index, CBOE 30 Year Treasury Bond Yield Index (12/30/2022 – 03/17/2023)
– Courtesy of Bloomberg LP
Dow Jones Industrial Average (03/17/2022 – 03/17/2023)
– Courtesy of Bloomberg LP
US Producer Price Index Finished Goods SA MOM% and US Consumer Price Index Urban Consumers MOM SA (03/31/2021 – 02/28/2023)
– Courtesy of Bloomberg LP
Standard & Poor’s 500 Quarterly Earnings Per Share (03/31/2018 – 12/31/2024)
– Courtesy of Standard & Poor’s and McGowanGroup Asset Management
US Producer Price Index Finished Goods NSA YOY% and US Consumer Price Index Urban Consumers YOY NSA (03/17/2021 – 02/28/2023)
– Courtesy of Bloomberg LP
West Texas Intermediate Crude Oil Spot Price (03/17/2020 – 03/17/2023)
– Courtesy of Bloomberg LP
Headline Round Up
*FDIC Averts Contagion Crisis Fully Protecting Deposits at Silicon Valley Bank and Signature Bank.
*Fed Loosens with $25 Billion Bank Term Funding Program.
*Lurking Systemic Risk of Tech Money Machine?
*Traders Bet No More Fed Interest Rate Hikes!
*Jim Cramer, CNBC Host, Awarded Double Bozo Award by NetWorth Radio!
*Swiss National Bank to Save Credit Suisse with $54 Billion Line of Credit!
*Deflation in January for the Producer Price Index.
*Egg Prices Decline Most Since 2020.
*Retail Sales Cool Off Declining in February.
*Healthy Jobs Report from February Plus Declining Wage Inflation.
*A Wealth Management Chatbot? Morgan Stanley Announces OpenAI for Advisors.
*$100 Oil This Year?
*U.S. Set to Become Largest Liquified Natural Gas (LNG) Exporter.
*ConocoPhillips Starts Alaska Work Hours after Willow Approval from Current Administration.
*Warren Buffett Adds 8 Million More Shares of Occidental Petroleum Corp. (OXY) During Downdraft This Week.
Profit Report
The End of Abundant Energy?
