* S&P 500 profits receive support from a weaker U.S. dollar
* Stock market rally shows indications of expansion as…
* Equal-weighted S&P 500 ETF (RSP) surpasses the cap-weighted ETF (SPY) over the past month
* U.S. economy remains “resilient,” states Minneapolis Fed President Neel Kashkari
* Three reasons America may sidestep a recession
* China’s factory activity for July contracts for the fourth consecutive month
* Eurozone growth improves in Q2 with easing inflation
* Crude oil is poised for the largest monthly price gain in over a year
* Yellow, a major U.S. trucking company with 30,000 employees, is closing
* U.S. consumer spending rose as inflation decreased in June—creating a ‘sweet spot’ for the economy:
● Our Least Important Asset: Why the Relentless Focus on Finance and Accounting is Bad for Business and Employees
Peter Cappelli
Review via Publishers Weekly
In this sharp analysis, Wharton professor Cappelli (Why Good People Can’t Get Jobs) criticizes the financial accounting standards set by the nonprofit Financial Accounting Standards Board. He argues that these rules, which categorize wages, benefits, and training as costs, lead to the undervaluation of employees. Cappelli illustrates how these misguided incentives can negatively impact businesses, such as when the expenses of high turnover outweigh minimal savings from layoffs and pay cuts, or when outsourcing labor ends up costing as much as maintaining in-house employees.
Forecasting is challenging, especially when it comes to future events, but financial markets sometimes find it easier to analyze situations when prices are at their extremes. The key difficulty lies in determining what constitutes “extreme.”
* U.S. government shutdown risk could be looming… again
* U.S. pending home sales index increased in June—marking the first rise since February
* Japan’s 10-year bond yield climbs to a nine-year high as the Bank of Japan relaxes its yield control
* Germany experiences a slight decline in GDP for the second quarter
* U.S. jobless claims dropped more than anticipated last week
* Durable goods orders in the U.S. rose significantly in June
* U.S. GDP experienced a strong upside surprise, increasing by 2.4% in the second quarter:
This year’s rally in U.S. stocks continues to be bolstered by a select few thriving sectors. A review of ETFs as of yesterday’s close (July 26) indicates that technology, communications, and consumer discretionary stocks are significantly outperforming the overall market, providing crucial support for upward momentum.
* The Federal Reserve increases the target interest rate by a quarter point to a 22-year high
* Fed staff no longer anticipates a U.S. recession, states Powell
* New U.S. home sales declined in June following a spike in May
* Regional banks report signs of recovery in Q2 earnings
* Investors steer clear of U.S. consumer firms highly susceptible to economic downturn
* Global oil needs are anticipated to hit a record high
* Is the Fed finished with rate hikes? If so, it might be time to invest in bonds:
The initial estimate of U.S. economic activity for the second quarter (set to be released on Thursday, July 27) is anticipated to indicate continued moderate growth, as indicated by the average forecast gathered from various sources by CapitalSpectator.com.
* The Federal Reserve is expected to raise interest rates today to a 22-year high
* Fed faces the risk of acting insufficiently to control inflation, states the president of SF Fed
* The IMF increases the global growth forecast despite a slowdown in China
* China introduces a new central bank governor at a crucial moment for its economy
* The U.S. is facing a “significant” shortage of skilled workers in the semiconductor industry
* U.S. housing prices rose for four consecutive months through May, but declined compared to last year
* The U.S. Consumer Confidence Index climbs to a two-year peak in July:
The price of gold, a beloved precious metal, hovers near its peak range over the last three years. However, for avid gold supporters, this is a letdown. The inflation surge following the pandemic was expected to elevate gold prices beyond the current $1962 per ounce. While inflation can influence gold pricing, real (inflation-adjusted) interest rates and the strength of the U.S. dollar predominantly affect its value. This correlation suggests that the recent increase in real rates plays a significant role. Not surprisingly, the fair value model from CapitalSpectator.com advises that the current valuation of gold is indeed inflated.
* Heatwaves across the globe likely triggered by climate change, research indicates
* Years of mounting global debt levels begin to impact as borrowing costs rise
* The U.S. economic boom may be possible due to a productivity surge, according to the head of Yardeni Research
* When will the decline in U.S. personal savings threaten economic expansion?
* The Federal Reserve is anticipated to raise interest rates tomorrow (Wednesday, July 26)
* Chicago Fed National Activity Index reveals that U.S. growth remains below trend in June
* U.S. economic momentum slowed down in July as per PMI survey data:
