Q: What happened to the tech stock rally in the equity markets recently?
A: It appears that, based upon global money flows, borrowing at low rates in Japan allowed hedge funds to buy U.S. tech stocks on leverage and gain the advantage from the decline in yen value through July 10th. The tech correction corresponded to the Bank of Japan raising interest rates increasing the yen value while fear buying sent the 10 Year U.S. Treasury yield below 4%. See the charts below for more information.
Q: Is there any good news lately in the financial markets?
A: S&P 500 Index companies have reported earnings growth of about 9% over last year with over 80% of the companies reporting so far.
Headline Round Up
*3M Boosts Profit Forecast as New CEO, Bill Brown, Takes the Helm.
*Federal Reserve Statement Acknowledges Inflation Progress. Potential interest rate cut at next Federal Reserve meeting September 17th-18th?
*Wall Street Bears Warn of Risks to Stocks from Slowing Economy.
*Surprise! The Latest Q3 Real GDPNow Growth Estimated at 2.9%.
*Homeowners Insurance Premiums Between May 2023 – May 2024 Rose 21% Last Year, Says Policygenius.
*One Million People Now Owe More Than $200,000 in Federal Student Loans!
*Office Loans are Toxic & Apartment Loans in Bad Shape Too.
*JPMorgan Provides Staff with Artificial Intelligence (AI) Powered “Research Analyst” Chatbot.
*God Bless Texas! Power-Hungry Data Centers Are Gobbling Up Texas in AI Boom.
*Cryptocurrencies Fizzle After Exchange Traded Funds (ETFs) Hype! Investors look out below?
*Palantir Surges After Boosting Annual Profit Forecast.
*Airbnb Shares Slide on Weaker Outlook Forecast as Bookings Miss Analysts Estimates.
*The 5 Highest Paying Oil and Gas Dividend Stocks for This Summer by OilPrice.com.
Invesco QQQ Trust Series 1 (12/29/2023 – 08/09/2024)
– Courtesy of Bloomberg LP
SPDR Dow Jones Industrial Average Exchange Traded Fund (ETF) Trust (12/29/2023 – 08/09/2024)
– Courtesy of Bloomberg LP
U.S. Dollar to Japanese Yen Currency Exchange Rate (08/11/2021 – 08/09/2024)
– Courtesy of Bloomberg LP
NVIDIA Corp. (12/29/2023 – 08/09/2024)
– Courtesy of Bloomberg LP
SPDR Standard & Poor’s 500 Exchange Traded Fund (ETF) Trust (12/29/2023 – 08/09/2024)
– Courtesy of Bloomberg LP
Standard & Poor’s 500 Index – Quarterly Earnings Analysis by Sector (05/16/2024 – 08/15/2024)
– Courtesy of Bloomberg LP
Profit Report
Future Decamillionaires from the 2024 Olympics?
