North Star Financial Services

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So far North Star Financial Services has created 10 blog entries.

The Ebb and Flow of the TIDE

Last Week: We are coining a new acronym, “TIDE” (Trade, Inflation, Debt, Earnings), to describe the movement in the market. Trade continued to be a powerful force, triggering a steep sell-off on Thursday as the delegation to China made little progress. Inflation concerns abated on Friday, as wage growth moderated in April, leading to a handsome rally that erased the losses from earlier in the week. In terms of earnings, the [...]

2018-05-09T13:31:03+00:00May 8th, 2018|

3% Danger Zone?

Last Week: Rising interest rates, rising corporate profits, and company specific news, were the three main drivers in the market, which finished modestly positive as the S&P 500 posted a 0.52% gain. The Ten-Year Treasury yield jumped 12 basis points to 2.95%, its highest level in four years. We are not short-term traders at North Star, but I think we are in the danger zone, since much of the volume comes [...]

2018-05-02T10:10:03+00:00April 23rd, 2018|

Gap Week

Last Week: The short story is that the S&P 500 gained 1.99%, as easing trade tensions with China, strength in the Energy sector, and the outset of a very strong earnings season provided the backdrop. The long story is that each day exhibited volatile swings, with the market gapping up on the opening Monday, Tuesday, and Thursday, and gapping down on the opening Wednesday and Friday. The pockets of turbulence came [...]

2018-04-24T15:26:53+00:00April 16th, 2018|

Fasten Your Seatbelt

Last Week: It was a turbulent week in what is developing into a volatile year in the stock market. In fact, we have already had more than three times as many days of 1% or more changes in the S&P 500 this year than we had in all of 2017. Additionally, all the major indices are in the red year to date, with the S&P 500 now down 2.59% after declining [...]

2018-05-02T10:07:21+00:00April 9th, 2018|

Overdue or Overdone

Last Week: A rally on Thursday capped off a volatile holiday-shortened week, and left the equity indices in the green, with the S&P 500 posting a 2.03% gain. Technology stocks drove most of the swings, as the debate raged between the the sector sell-off being “overdue” or “overdone”. Facebook attracted most of the media attention, as the company came under fierce attacks for their data practices. Nevertheless, the Company’s shares managed [...]

2018-04-24T15:26:17+00:00April 2nd, 2018|

A Stormy Week

Last Week: It was quite stormy in Washington and on Wall Street, as it was the worst week for the stock market since January 2016, with the S&P 500 declining almost 6%. Early in the week it was the technology stocks that fared the worst, with the disclosure that Facebook had failed to protect customer data leading to a sharp decline in its shares, followed by earnings from Oracle that were [...]

2018-04-24T15:25:27+00:00March 26th, 2018|

Half-Empty

Last Week: The glass was half-empty, as the rally that was ignited by the previous week’s release of the February Jobs report proved to be short lived, and the S&P 500 declined Monday through Thursday before bouncing on Friday to finish the week down 1.2%. A couple of weak economic reports, most notable a surprising decline in retail sales weighed on the equity markets but did help drive the yield on [...]

2018-04-24T15:24:53+00:00March 19th, 2018|

Glass Half-Full Again

Last Week: Like following a well-written television series, one needs to watch all the previous episodes to appreciate the nuances of the plot twists in “Trumpworld” (no disrespect intended, the POTUS would probably like the title anyway). In August, rumors of Gary Cohn’s resignation roiled the markets. In February, an unexpectedly strong jobs report triggered a 10.8% “correction” in stock prices and pushed interest rates to a four-year high. Last week, [...]

2018-04-24T15:22:53+00:00March 12th, 2018|

The Headline Olympics

Last Week: It was the headline Olympics last week, with Putin, Mueller, Powell, and Trump competing for medals. Putin failed to make the podium, despite boasting of a new generation of “invincible” nuclear -capable Russians weapons. Mueller earned the bronze medal, with a flurry of recent activity, including expanding the investigation into possible ties between the United Arab Emirates and the White House. The silver medal went to Fed Chair Jerome [...]

2018-04-24T15:23:25+00:00March 5th, 2018|

All Eyes on the Ten-Year

Last Week: Even though the S&P eked out a modest gain, the almost minute by minute focus on interest rates has certainly made the stock market ride quite bumpier. In the chart below, the top panel shows the S & P 500 and the bottom panel the yield on the Ten-Year Treasury. On Tuesday morning, yields were up and stocks down. The next big move came on Wednesday after the release [...]

2018-04-24T15:23:56+00:00February 26th, 2018|