Financial Review

Thus Spake Powell


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…Fed Chief Powell says rates are just below neutral. Stocks big rally. JOLTS shows quits improve. 3Q GDP unchanged at 3.5%. Investors lose faith in market cycle. Financial Review by Sinclair Noe for 11-28-2018 DOW + 617 = 25,366 SPX + 61 = 2743 NAS + 208 = 7291 RUT + 37 = 1530 10 Y – .01 = 3.04% OIL – 1.32 = 50.24 GOLD + 6.10 = 1221.70   There are several factors driving the stock market. You know the big issues: trade wars, tariffs, sanctions, emerging market debt, corporate debt, earnings, tax deals – all these issues can move the market.   Stock rallies across Asia spread to European indexes and US futures on Wednesday as investors took comfort from some reassuring words about trade by one of Trump’s closest advisors. Larry Kudlow said that the White House was having “a lot of communication with the Chinese government at all levels” ahead of Sunday’s highly anticipated meeting between Trump and his Chinese counterpart, Xi Jinping. Investors took Kudlow’s comments at face value, sending stocks higher around the globe. If a trade deal between the US and China can be reached, it would be a huge positive for stocks – but it seems premature.   The Federal Reserve still has some juice – and when Fed Chair Jerome Powell speaks, people listen. Today, Powell spoke before the Economic Club of New York. Three words resonated: “just below neutral”. The phrase “just below” neutral might seem innocuous. But those ...
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Financial ReviewBy Sinclair Noe