Financial Review

Quiet and Overbought


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Markets are quiet, calm and overbought. Productivity lags, again. Credit growth hits a record. What will Draghi buy? Goldman investigated for Bank Secrecy Act. Valeant looks sick. Samsung has the next cool phone. Financial Review by Sinclair Noe for 06-07-2016 DOW + 17 = 17,938 SPX + 2 = 2112 NAS – 6 = 4961 10 Y – .01 = 1.71% OIL +  .74 = 50.43 GOLD – 1.50 = 1244.20 Fed chief Janet Yellen on Monday called last week’s U.S. jobs numbers disappointing and opted not to repeat her message that U.S. interest rates could rise again in the coming months. That was balanced, however, by her cautioning against attaching too much significance to the payrolls data in isolation and as she pointed to other more upbeat signals for the economy and indicated rate hikes this year would still be appropriate. On Friday, when the jobs report came in at a very weak 38,000 jobs added, the markets were down slightly. Clearly the news from the jobs report had the effect of taking a June rate hike off the table. In the past, the markets would have rallied on that kind of news, but it made for terrible optics, and so we had to wait for Fed chair Yellen to not say anything. And besides, the markets had already priced in no rate hike in June. So, what’s going on here?   The S&P 500 has gone 42 trading days without a decline of 1% or more. That’s the longest stretch ...
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Financial ReviewBy Sinclair Noe