Market News Today Than Can Actually Make You Money
In our couple-of-hours of combing through our 180-or-so google alert news topics we pulled out 2 or 3 pieces of market news that we thought were actionable. The rest we put in the other file.
|We know we should've put a picture of|
Quarles or Yellen, but who doesn't
love a picture of the President.
*President Trump finally announced his nomination to fill a Fed Board seat. Randal Quarles currently runs an investment firm and is expected to carry out President Trump's calls to deregulate the banks. Deregulation will remove capital requirements and other restrictions opening them up to drive higher profits. That's of course bullish.
*Add to the above Fed nomination, Fed Chair Yellen will speak to Congress for two days starting tomorrow. She will of course be asked about the nomination which will be an additional reminder about potential deregulation. What's already bullish for banks is that the Fed recently gave sweeping passing grades for bank stress tests. That front-ran the need for deregulation to a degree because the Fed already allowed lower capital requirements. That also adds higher earnings-per-share potential as banks are now allowed to raise buy-backs and dividends more than in the past.
*Earnings season starts Friday with bank reports. JP Morgan (JPM), Citigroup (C), Wells Fargo (WFC), and PNC (PNC) all report but none of them have particularly good earnings reaction history when they report. Really we think the recent stress test passing grades will be the hot topic on quarterly reports potentially driving the stocks.
We're excited about earnings season because Q1 was the best in almost six years according to Factset led by foreign demand. We expect more of the same for Q2. CNBC just had a report out worrying about the second half but, c'mon, let's get through Q2 first. We think it can be great driving stocks higher to new highs (we're only about 1-2% away).
|One Penny off!|
*Snap Inc (SNAP) broke its IPO price of $17 which can always cause investors to give up in unison causing further weakness. It closed at a share price of $16.99. Never good. It's not generally a bullish market sign seeing a popular IPO not work but really we think the reason is that Facebook is just so great. Facebook is their main competition and we love Facebook (FB).
If we missed any amazingly critical piece of market news today that can make us all money please let us know. We hope we saved you a few hours combing through all the noise to find something.
By: Chaim Siegel, Elazar Advisors, LLC
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