Afternoon Note
The market shot out of the gate on little news, not unlike last Thursday’s session, only to watch the move stall, and then begin to slide. Some are attributing the move to comments from the Trump administration from trade to currency.
Comments from Treasury Secretary Mnuchin to reporters at the World Economic Forum in Davos suggesting a weak dollar is good got tongues wagging. He clarified that longer term, the U.S. desires a strong dollar as proxy of the US economy. The dollar is currently at a 3-year low.
I think a weak dollar is not a big deal, and I agree that the lower dollar, at this point in time, is a plus for America as it:
Trade War?
On the possibility of a trade war, US Commerce Secretary Wilbur Ross says it has been underway for some time adding, “the difference is that the US troops are now coming to the ramparts.”
Ross also pointed out the hypocrisy of Davos elites fawning over Xi Jinping and his warning against protectionism, since no nation puts up more barriers to fair trade than China.
It remains to be seen how much the market pulls back, as would-be buyers probably stand back to see how many sellers materialize. I’ve been saying expect more volatility but focus on fundamentals.
Meanwhile, crude oil inventories declined again, although, less than expected.
Caterpillar received yet another price upgrade today, this time from Barclays. December 3-month rolling retail sales had a pickup in total machines sales from November:
Total Machines |
December |
November |
World |
+34% |
+26% |
Latin America |
+55% |
+48% |
Asia Pacific |
+50% |
+43% |
EAMA |
+37% |
+26% |
North America |
+23% |
+12% |
Sales from its Energy and Transportation segment were up 19% in December compared to up 23% in November.
Total Energy and Transportation |
December |
November |
Oil & Gas |
+35% |
+43% |
Industrial |
+21% |
+30% |
Transportation |
+10% |
+35% |
Power Generation |
+1% |
-7% |
The major indices are seesawing. Industrials and Technology are among the weakest sectors, while Health Care, Financials, Materials, and Telecom Services are strong.
Tweet |
4/26/2024 9:39 AM | BIG TECH STEPS UP |
4/25/2024 1:16 PM | Don't' Bury me, Yet! |
4/25/2024 9:27 AM | THERE CAN ONLY BE ONE |
4/24/2024 1:30 PM | Earnings Flood In |
4/24/2024 9:26 AM | BUYING THE DIP |
4/23/2024 1:25 PM | Bloom Off Rose |
4/23/2024 9:32 AM | WHAT HAPPENED TO THE BRAVADO? |
4/22/2024 1:22 PM | Pins and Needles |
4/22/2024 9:30 AM | LIVE BY THE SWORD … |
4/19/2024 1:20 PM | Fair Chunk of Rotation |
4/19/2024 9:35 AM | DON’T OVERREACT |
4/18/2024 1:37 PM | Didn’t Break Down |
4/18/2024 9:40 AM | MARKET OFF SCRIPT |
4/17/2024 1:59 PM | Facing Pressure |
4/17/2024 9:37 AM | POWELL STILL WANTS TO HELP |
4/16/2024 1:35 PM | Muted |
4/16/2024 9:42 AM | FEAR ARRIVES |
4/15/2024 1:17 PM | Making a Statement |
4/15/2024 9:45 AM | Equal Opportunity Drubbing |
4/12/2024 1:37 PM | Pressure Overall |
4/12/2024 9:42 AM | WHO YA GONNA CALL? |
4/11/2024 1:38 PM | No Urgency |
4/11/2024 9:27 AM | Tough Sledding |
4/10/2024 1:22 PM | Hang In There |
4/10/2024 9:51 AM | HERE COMES THE LATEST RATIONALE FOR PERSISTENT INFLATION |
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