Yardeni QuickTakes (Page 38)

Reports of Dollar's Demise Are Greatly Exaggerated

Aug 19, 2024 3 min read paid

The strength of the US dollar has been a key feature of the post-pandemic bull market. Approaching Jackson Hole, the greenback has been falling. It is now up just 0.5% ytd versus 4.6% seven weeks ago (chart). Is this the start of a new weaker dollar regime? Unlikely. The DXY is still up 10% over the past three years, and it wouldn't surprise us if the

Ed Yardeni
Eric Wallerstein

Market Call: Bungee Jump

Aug 18, 2024 3 min read

Last week's economic data confirmed that consumers are still consuming, the labor market is fine, small business owners are more optimistic, and inflation is still moderating. On Friday, at Jackson Hole, Wyoming, Fed Chair Jerome Powell is likely to reiterate that the economy is performing well and that inflation is getting closer to the Fed's 2.0% target. He is likely to support market expectations that

Ed Yardeni
Eric Wallerstein

The Economic Week Ahead: August 19-23

Aug 18, 2024 3 min read paid

The week ahead is light on economic data. However, there will be lots of news coming out of Jackson Hole, Wyoming from Thursday through Saturday as many of the world's central bankers gather for their annual meeting near the Grand Teton mountain range. Most important will be Fed Chair Jerome Powell's speech on Friday at 10:00 a.m. (EST). Many other central bankers from the

Ed Yardeni
Eric Wallerstein

DEEP DIVE: Record High Earnings Giving Stock Market A Lift

Aug 16, 2024 3 min read paid

There’s no sign of an imminent recession in the latest earnings reporting season. Joe notes that more than 90% of the S&P 500 companies have reported their earnings for Q2. Collectively, S&P 500 operating earnings per share (EPS) rose 10.9% y/y during the quarter to a record high of $60.19 (Fig. 1 below and Fig. 2 below). Here’s more related happy

Ed Yardeni
Eric Wallerstein

Consumers Are Still Shopping, Not Dropping

Aug 15, 2024 3 min read paid

This morning's data tsunami showed that the labor market remains in good shape and is fueling consumer spending. The latest data support our view that betting against consumers when jobs are expanding is a bad bet. In addition, cautious guidance by several consumer-related companies during the latest earnings reporting season might have been too cautious. Today on a call with analysts, Walmart's CEO Doug McMillon said,

Ed Yardeni
Eric Wallerstein

China Dragon's Breath Is Less Fiery

Aug 14, 2024 2 min read

China's economy is faltering. July data suggest the government will have to provide more stimulus to meet its 5% economic growth target for the year. Most striking is the small but unusual decline in bank loans during the month (chart). It suggests a lack of confidence among businesses and consumers, potentially leading to reduced investment and spending. China's real retail sales rose just 2.2% y/

Ed Yardeni

2% Inflation: Are We There Yet?

Aug 14, 2024 2 min read paid

On long car rides, the kids in the back seat ask their parents, “Are we there yet?” Investors have been asking the same question about the Fed’s 2.0% inflation target. The answer is we aren’t there yet, but we're close. At his Jackson Hole speech at the end of next week, Fed Chair Jerome Powell is likely to confirm that. The question is whether he

Ed Yardeni
Eric Wallerstein

Dr Ed's Video Webcast 8/14/24

Aug 14, 2024 1 min read paid

Corporate earnings have never been higher, suggesting that employment should continue to grow as profitable companies expand their payrolls. Today, Ed and Eric put the prospect of a recession into perspective with their “Credit Crisis Cycle.” Ed notes that S&P 500 companies’ record-high forward earnings is a bullish indicator for the stock price index. The S&P 500 forward profit margin is near its record high and

Ed Yardeni
Eric Wallerstein

Immaculate Disinflation!

Aug 13, 2024 3 min read paid

This morning's July PPI was cooler than expected, rising just 0.1% m/m and 2.2% y/y. The markets responded by betting on a swifter Fed interest rate cutting cycle, sinking the 2-year Treasury yield to 3.956% and the 10-year yield to 3.856%. Stocks rallied in response to the data. The low inflation print supports our view that the US economy has left inflation

Ed Yardeni
Eric Wallerstein

Is Oil Price Anticipating an Imminent War Between Iran & Israel?

Aug 12, 2024 2 min read

The war in the Middle East may be about to widen. Consider the following: (1) The Israeli intelligence community reportedly believes that Iran has decided to directly target Israel in retaliation for the assassination of Hamas Political Bureau Chief Ismail Haniyeh. That decision was made after an internal debate between the Iranian Revolutionary Guards (IRG) and the new Iranian president and his advisors. The IRG has been pushing for a

Ed Yardeni
Eric Wallerstein

S&P 500 EPS At Record High During Q2

Aug 12, 2024 3 min read paid

Now that the S&P 500 companies are more than 90% through the Q2 earnings reporting season, let's do a quick check up on how Corporate America is faring. In short, there's no sign of an imminent recession as S&P 500 earnings rose to a record high during Q2. Here's more happy news to serve as a tonic to the geopolitical

Ed Yardeni
Eric Wallerstein

Market Call: More Churning?

Aug 11, 2024 3 min read paid

We've been expecting the stock market to churn for a while. We didn't expect it would churn so much in just one week as it did last week. So now what? Our bet is probably more churning is ahead with lots of volatility through the presidential election.

Ed Yardeni

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