It's A Huge Week For Economic Data...
"...there are two data points that will steal the show this week..."
Friend of Fringe Finance and well known financial news contributor - as well as 38 year veteran of markets - Kenny Polcari has been kind enough to share his most recent thoughts on the market with our readers.
For those who aren’t familiar with Kenny or don’t recognize him from TV, he is Managing Partner of Kace Capital Advisors and Chief Market Strategist at SlateStone Wealth. He started his career on the floor of the New York Stock Exchange (NYSE) as an institutional broker back in the early eighties when the march of electronic trading was already taking its first steps, and the great bull was first learning to run.
Here’s his take on markets heading into the Monday, January 30, 2023, trading day:
The post has been lightly edited for punctuation and grammar.
Chevron posted record quarterly ($35.5 billion) and annual ($246.3 billion) revenues. Fourth quarter revenues, though, huge as they were ‘short’ of analysts’ estimates, so the trader types that had been buying the stock on the expectation of higher results decided to stamp their feet and sell stock, sending the name down 4% on Friday. This, in my opinion, was a buying opportunity for the long term investor. It comes as the company also announced a massive $75 billion stock buyback program and an increase in their dividend.
U.S. consumers turned cautious as consumer spending fell by 0.2% in December, while the Fed’s favored inflation gauge also eased (as expected), giving some hope to consumers that inflation is cooling.