It looks like Jay Powell has lost a lot of his chill since his Jackson Hole speech. He was more hawkish about policy and took a firmer position on the tapering timeline. It’s what investors claim they wanted–a straight shooter on tapering. He doesn't want hikes; and neither do I!
Some in the media are saying that Jay Powell has to find a way to admit inflation will linger longer and cause more economic damage than the Fed assumed, but still suggest its transitory. I am with him on this: transitory is accurate. I expect to see inflation ebb in early 2022.
Earnings season begins with reports pouring in from every sector. S&P companies are expected to post profit growth of 32% 4Q. In the early day of the earnings season, companies are topping estimates by an average of 16% vs. the long-term average of 4%. buff.ly/3FVhgPZ
Wall Street ended higher after a week of strong bank results and better-than-expected retail sales eased worries about demand.Treasury yields rose, while gold prices fell. The dollar edged lower as global risk appetite rebounded, helping reduce demand for the safe-haven currency.
The S&P 500 wrapped up its best week since July, closing at its highest level in a month, as a series of upside earnings reports from Wall Street's biggest banks outweighed negative macro sentiment. Financial heavyweights Goldman Sachs, J.P. Morgan and Bank of America. Onward up!
The S&P 500 on Thursday rallied 74.46 points, or 1.7%, to finish at 4438.26, marking the benchmark index’s largest one-day percentage gain in more than seven months. That as an astounding move which then continued yesterday. Why is that? Secular Bull! buff.ly/2YOHToP
