News Flash: Monday Sept 26th

Market Snapshot (as of Friday):

  • NASDAQ and S&P both closed higher
  • 6 of 11 S&P sectors increased
  • Second week of gains for S&P and Dow
  • Gold ended week down 2.1%
  • The dollar fell against the yen with North Korea concerns and Fed rate hike expectations
  • Bitcoin ETFs are making headway in the US while trading was banned in China

Renewables:

The U.S. International Trade Commission ruled that imported solar cells have harmed American manufacturers.   They could impose tariffs on the world of solar.  The federal agency responded to a petition brought by two suffering American manufacturers, Suniva and SolarWorld, which complain they’ve been undercut by cheap imports . Their argument is that greater trade protection would force manufacturers to build in the U.S.  But the Solar Energy Industries Association, the largest trade group for the $29 billion industry, wasn’t having any of it. Its position is the U.S. barely makes any solar panels anyway, with fewer than 1,000 people employed in actual production. Instead, 88,000 jobs that rely on cheap, imported panels could evaporate.  Almost certainly, consumer prices would jump as well.

Loans:

Leveraged loans are on pace of pre-crisis levels.  Higher consumer sentiment is driving investment in institutional debt. Volume for these leveraged loans is up 53% this year in the U.S.  We are lending to the most indebted companies in the US and Europe.  This type of investment is exploding, as it usually provides higher yields.  This could sign that investors have higher confidence due to increasing economic indicators signaling a strong economy, or naivety.  Could this be another bubble fueled by irrational security prices?

 
Economic Calendar:

Friday (September 22) Earnings: No Events
Economic Events: PMI (+)
Monday Earnings: No Events
Economic Events: Chicago Fed National Activity Index, Dallas Fed Mfg Survey
Tuesday Earnings: No Events
Economic Events: Case Shiller HPI, New Home Sales, Consumer Confidence, Richmond Fed Mfg Index
Wednesday Earnings: No Events
Economic Events: Durable Goods Orders, Pending Home Sales, Petroleum Status
Thursday Earnings: Accenture, McCormick, Rite Aid
Economic Events: GDP, International Trade in Goods, Jobless Claims
Friday Earnings: No Events
Economic Events: Personal Income and Outlays, Chicago PMI, Consumer Sentiment

 

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