Reading economic tea leaves, reveals issues in the February Jobs Report
In this week’s Monday Morning Kickoff:
Positive Moves in the Market and Oil Prices
This past week marked the third consecutive week of positive moves in the market, coinciding with oil prices moving higher, but still below the $50 threshold domestic producers need to remain profitable. The supply side of the oil equation is what we kick this issue of Monday Morning Kickoff off with.
Seven out of Ten Sectors Supporting the Market Turnaround
More astounding than the sharp upturn in the market is the breadth of the rebound. As of last Friday’s close, 81% of the stocks in the S&P 500 were trading above their 50-day moving averages, with seven out of ten sectors having an even higher percentage above their 50-day moving averages.
Reading the Tea Leaves of the February Jobs Report
If the better than expected 242,000 jobs number offered by the February Employment Report was indeed a strong figure then why did the average work week and wages both fall in February?
The Week Ahead in Economic and Earnings Data.
It’s rather sparse on the economic data front, yet, there are a few economic indicators that we’ll be watching. On the earnings front, this week’s pending reports will do little to influence 2016 earnings expectations for the S&P 500, with current expectations now calling for an 8 percent drop in current quarter earnings, marking the first time the index has seen four consecutive quarters of year-over-year declines in earnings since 4Q 2008 – 3Q 2009.
Confirmation of our thematic approach
We came about two key confirming data points from this past week that support the thematic lens we utilize at Tematica Research: The recently announced collaboration between Nest and Amazon, which sits at the convergence between our Connected Society, Cashless Consumption and Disruptive Technology themes; The by Piper Jaffray survey that reported 44% of their point of sale merchant customers are using or have requested information about mobile wallet solutions, which supports our Cashless Consumption theme.
Click the link below to download this week’s Monday Morning Kickoff report:
