Bank of America says the next bubble is here. It recommends selling stocks.
Another bubble has emerged, courtesy of the bank-sector crisis which has already felled three U.S. regional...
Another bubble has emerged, courtesy of the bank-sector crisis which has already felled three U.S. regional banks. Bank of America analysts led by Michael Hartnett say money-market funds are the new hot asset.
They point out that assets under management for money funds have now exceeded $5.1 trillion, up over $300 billion over the past four weeks. They also counted the biggest weekly flows to cash since March 2020, the biggest six-week inflow to Treasurys ever, and the largest weekly outflow from investment-grade bonds since Oct. 2022.
History, according to the BofA team, says to sell the last interest rate hike.“Credit and stock markets are too greedy for rate cuts, not fearful enough of recession,” they say. After all, when banks borrow from the Fed in an emergency, they tighten lending standards, which in turn results in less lending, and that leads to less small-business optimism, which eventually cracks the labor market.
U.S. durable-goods orders fell 1% in February, led by drops in transportation
The numbers: Orders for U.S. manufactured goods fell 1% in February because of less...
The numbers: Orders for U.S. manufactured goods fell 1% in February because of less demand for passenger planes and new cars. Yet business investment rose for the second month in a row in a sign the industrial side of the economy is still growing.
Economists polled by the Wall Street Journal had forecast a 0.3% drop in orders. Durable goods are products like cars, appliances and computers meant to last at least three years.
Orders rise in an expanding economy and shrink in a contracting one. They are still rising but at a slower pace compared to last year. Orders are up 2.3% over the past 12 months, marking the smallest year-over-year increase since 2020.
Lower energy prices raise odds of US shale drilling slump
An up to 20% drop in US shale drilling activity is possible over the next year if current energy prices...
An up to 20% drop in US shale drilling activity is possible over the next year if current energy prices persist, private equity player Quantum Energy Partners has warned. Maintaining the present rate of drilling and fracking work would require crude oil prices of $80 per barrel and gas prices of $3 per million British thermal units, Quantum CEO Wil VanLoh estimated.
Oil, gas permitting activity up sequentially in Feb.
Evercore ISI has reported that 2,929 permits for...
Evercore ISI has reported that 2,929 permits for oil and natural gas exploration were approved in the contiguous US in February, marking an increase of 211 from January but a decrease of 8.8% from February 2022. Permitting activity fell by 26% in the Powder River Basin and by 18% in smaller plays, while gains were recorded in the Marcellus Shale, Denver-Julesburg/Niobrara and the Eagle Ford Shale.
Major U.S. stock indexes end volatile session in positive territory
U.S. stocks ended modestly higher Thursday in choppy trade as...
U.S. stocks ended modestly higher Thursday in choppy trade as worries about potential weakness in the banking system resurfaced a day after the Federal Reserve increased hikes by 25 basis points.The Dow Jones Industrial Average DJIA rose about 73 points, or 0.2%, ending near 32,103, down about 400 points from the session’s high. The S&P 500 index SPX gained 0.3% and the Nasdaq Composite IndexCOMP closed up 1%, according to preliminary figures from FactSet. Stocks closed off the session’s highs but gained ground after Treasury Secretary Janet Yellen told a Senate committee that the federal government would take extra steps to stabilize the U.S. banking system, if necessary.
