Global Assets - 98% Are Up Year To Date

Global Assets - Stocks Fell Slightly On Thursday

Finally, investors had enough of the bad data and weak earnings estimates on Thursday. 

S&P 500 fell 0.35%, Nasdaq fell 0.39%, and Russell 2000 fell 0.39%. Best 2 sectors were the utilities and consumer staples as they increased by 0.75% and 0.28%. 

Consumer staples sector will be hit hard on Friday by the crash in Kraft Heinz stock. The company missed earnings and was subpoenaed by the SEC because of its accounting practices. Its stock fell 20.63% after hours. 

Worst 2 sectors were energy and healthcare which fell 1.55% and 0.88%. The American stock market isn’t the only one that’s overbought. 

As you can see from the chart below, after a terrible year in 2018 where the lowest percentage of global assets increased since 2008, 2019 has been amazing.98% of global assets are up which is the most since 2009.

(Click on image to enlarge)

Global Assets - Terrible Economic Reports But Claims Fall

The list below reviews the economic data that came out on Thursday. 6 of the 8 reports missed estimates. This a more detailed look than the Citi economic surprise index. 

It’s notable that some of the hard data from December is still coming out because of the government shutdown. That makes the index slightly less relevant as traders are focused on how February’s economy was.

(Click on image to enlarge)

As the list above shows, the jobless claims report was one of two reports which beat estimates on Thursday. 

This is very important because initial claims had been trending in the wrong direction in the past 3 weeks. That’s shown by the 4 week moving average increasing from 231,750 to 235,750. 

In the week of February 16th, claims were 216,000 which is a decline of 23,000 from the previous week.

If claims stay near here, it will remove all fear that there will be a recession in the 1st half of 2019. 

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