Author Archives: Rick Pendergraft

Has the U.S. Housing Market Turned the Corner?

Throughout 2018, the housing market in the U.S. was in a downward trend in terms of housing starts and new home sales. Those two industry measures go hand in hand, and both trended lower in 2018 as the Federal Reserve was in a rate-hiking cycle. The housing industry is very sensitive to interest rates. The Fed made a 0.25% hike ...

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What We are Watching in the Market

After hitting a new all-time high on May 3, the S&P 500 and most of the rest of the market have been hit with tremendous selling pressure. As another round of negotiations was scheduled to take place last Thursday and Friday, President Trump tweeted his intentions to implement new tariffs on Chinese goods. This caught investors off guard, and we ...

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A Look at the Earnings Results So Far: Better than Expected

As of May 3, approximately 78% of the stocks in the S&P 500 had reported earnings results for the current earnings season. With all things considered, the quarter has been better than expected. According to a recent report from FactSet, 76% of those companies that have reported so far have beaten the EPS estimates. That is better than the long-term ...

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Is President Trump Trying to Control the Stock Market?

The S&P 500 closed at an all-time high on Friday. Because it was the S&P and not the Dow, the mainstream media didn’t make that big of a deal about it. For some reason, the media continues to use the Dow as the overall market gauge, even if it isn’t what they should use. After the all-time high, President Trump ...

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Neutral Fed Confounds Investors

The Fed ended its meeting yesterday and announced that they were leaving the Fed Funds rate where it is. They also stated that they would be patient before making the next move without giving any indication whether the next move would be a cut or a hike. Personally, that is exactly what I expected from this meeting. And it’s what ...

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Early in Round Two, Old Economy Stocks Get Some Shots In

Last week I wrote an article about how “old economy” stocks seemed to be issuing disappointing earnings results while “new economy” stocks were posting positive earnings results. I mentioned that it was early in the earnings season, but I pointed out how companies like 3M, Caterpillar, and UPS had all dropped sharply after earnings while companies like Facebook, Twitter, and ...

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The Great Divide in Earnings Results, Old Economy Vs. New Economy

The earnings season is in full swing this week, and we have gotten reports from some key companies over the last few days with more to come. So far there has been a great divide in the results and reactions to the earnings reports. I expressed many times heading into this earnings season that I was concerned about earnings declining ...

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Healthcare Stocks Getting Pummeled, But Why?

Healthcare sector stocks have been under tremendous selling pressure over the last few weeks, and there are questions as to why. Is it political with all the talk of “Medicare for all” and President Trump making statements about bringing down drug prices? Is it simply a matter of sector rotation? Could it be profit taking ahead of upcoming earnings reports? ...

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Early Results Show Earnings Growing at a Slower Pace

A few weeks ago I wrote about the upcoming earnings season. That season started last week with Delta Airlines, JPMorgan, and Wells Fargo releasing results. In that article, I showed a table of different companies and the EPS estimates for this quarter compared to last year and the average growth for the last three years. In that earlier article, I ...

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