Afternoon Note
This is jobs week which always brings extra angst and increase volatility as we moved toward the announcement on Friday. The street looking for and perhaps hoping for jobs to slow a bit from the torrid pace in February. Right now it’s tough sledding for the market which is taking its cue from the weather. Historically in New York the second day of April is above 50 degrees without snow and sleet and in recent years April has been the best month for stocks.
While there isn’t a sense of panic the market has bounced around on headlines more than actual factual developments and it’s no different today. Technology stocks are lower as the war or words increases between Mark Zuckerberg and Tim Cook. The hardest hit segment of the market is consumer discretionary (XLY) which is being dragged down by major pressure on Netflix and Amazon.
Of course those names are by far the strongest in the sector year to date but brick and mortar names which were already in stealth rally mode are getting help from the prospects of the Trump Administration leveling the playing field.
As the Trump Administration fine tunes its list of products under the announced $50 billion in tariffs China officially implemented a $3.0 billion retaliatory tariff on steel and aluminum with a focus on food, fruit and pork.
Tariff concerns worked their way into the March Manufacturing ISM Report on Business. PMI for March was 59.3%, a decrease of 2.46% from the February reading of 60.8%.
Demand remains strong, as it can be seen in the New Orders sub-index, which remained above 60 for the 11th month. The red flag was the Prices sub-index which rose 5.52% to 78.1 from February’s reading of 74.2%. Higher raw material price concerns lead this index to its 25th consecutive monthly increase and the highest reading since April 2011. A number of respondents commented that the threat of tariffs was impacting the supply chain. One such manufacturer said. “New tariffs are causing concern across the supply chain. Full impact will take a few weeks to reveal itself.” While another commented, “Overall, incoming orders are picking up, and supplier pricing is increasing in some commodities.” Pricing power is key, what companies can best pass pricing pressures along to their customers if necessary?
Generally, the market hates uncertainty and Wall Street hates rocking the boat of status quo even more, today’s weakness isn’t a surprise, and investors are looking for the key to turn things around.
Comments |
TRUMP GIVETH AND NOW TAKETH MAYBE THE PARTY IS OVER RON BARON HAS OVER A MILLION SHARES OF TESLA CHANOS IS SHORT YIKES ! ernest remus on 4/2/2018 2:12:38 PM |
Mr. Payne, Outstanding information from this webpage and, of course, your appearance and contributions to your audiences' benefit. Thank you for your efforts and hope to one day have an opportunity to shake you hand. Also, we in Louisiana need your energy and spirit. I would like to suggest you take your show on the road across America and make a stop in Lafayette, Louisiana to uplift not only all in our community but most importantly the Americans of African ancestry. There are shootings each week in the cultural region of 'Acadiana' where the center is Lafayette. Please consider a speaking tour to our area for uplifting the spirit as you so generously have in the past. Also, please note of deep traditional natural gas plays as investment opportunities in south Louisiana. Again, thank you for being a great American. Sincerely, Brian T. Kenney 337-255-8309 Brian Kenney on 4/2/2018 2:23:02 PM |
Tweet |
3/28/2024 9:50 AM | LISTEN TO THE MARKET |
3/27/2024 1:40 PM | Mostly Higher |
3/27/2024 9:32 AM | U-TURN? |
3/26/2024 1:08 PM | Everything Is Up |
3/26/2024 9:42 AM | TAPPED OUT (I HOPE YOU AT LEAST GOT A T-SHIRT) |
3/25/2024 1:33 PM | Not A Mutiny |
3/25/2024 9:35 AM | STAYING THE COURSE…BEYOND TECH |
3/22/2024 12:56 PM | Toll on Americans |
3/22/2024 9:38 AM | A TAD TIRED |
3/21/2024 1:55 PM | Building on Gains |
3/21/2024 9:30 AM | A COMFORTING FED |
3/20/2024 1:33 PM | Pivotal Moment |
3/20/2024 10:00 AM | HERE COMES THE FED |
3/19/2024 1:33 PM | Picking Up Steam |
3/19/2024 9:35 AM | RUMBLINGS IN THE BOND MARKET |
3/18/2024 1:48 PM | Mag 7 is Back |
3/18/2024 9:39 AM | THE PARTY IN SAN JOSE WILL BE LIT |
3/15/2024 1:38 PM | Realtors Settle |
3/15/2024 9:33 AM | AN UNEASY PAUSE |
3/14/2024 1:43 PM | Sticky Inflation |
3/14/2024 9:48 AM | GOING TO A GO-GO |
3/13/2024 2:16 PM | Taking a Breather |
3/13/2024 9:51 AM | ALL SO EPIC |
3/12/2024 1:42 PM | Marching Higher |
3/12/2024 9:25 AM | ROTATION IN FULL SWING |
More commentary archives |
Home |
Products & Services |
Education |
In The Media |
Help |
About Us |
Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.
|