Stocks will beat bonds in coming years: Jim Paulsen - Yahoo News
Market Stocks were lower this morning as the Nasdaq fell below the 5,000 level if hit for the first time since the year 2000 yesterday. Auto sales slowed down in February to 16.23 million on an annualized seasonally adjusted rate due to poor weather, less than the 16.7 million expected by economists. GM (GM) sales were up 4.2%, Chrysler (FCAU) sales rose 5.6% while Ford (F) sales dropped 1.9% due to inventory issues with the firms new F-150 truck. At market close the Dow and S&P 500 were each down 0.5% while the Nasdaq was off 0.6%. The company said it earned $1.46 a share in the quarter, up from 83 cents a share in the year-ago quarter.
STOCKS FALL, US AUTO SALES DISAPPOINT: Here's what you need to know - Yahoo Finance
In a note Tuesday, Macquarie 's Vincent Caintic wrote: "Intense competition makes it difficult for AmEx to maintain share, even best stock buys with strong industry spends trends in consumer and commercial." Caintic also cautioned investors against being long into the company's March 25 investor day meeting, and said that from current levels, there is only about 7% potential upside to AmEx shares, while downside potential is "significant" at 21%. Macquarie forecasts flat earnings growth for AmEx in 2016 due to the loss of the Costco deal. Best Buy , the largest U.S. consumer electronics chain, reported better-than-expected earnings results . Total same-store sales rose 2% during the fourth quarter, slightly better than the 1.9% rise estimated.
Stocks hovering near record levels - Yahoo Finance
Nutrisystem popped yesterday afternoon on strong profit but hasn't traded yet today. Monthly automobile sales are due later this morning. TiVo, Ambarella, and Smith & Wesson announce results this afternoon. The numbers from BBY, AZO, and DKS match the recent pattern of strength in the consumer-discretionary space. Hoteliers, media companies, and auto-related stocks have also outperformed, according to optionsMONSTER's proprietary researchLAB market scanner.
Paulsen analyzed the capital-labor ratio, the ratio of the quantity of capital to the quantity of labor, since the post-war era and found that when the ratio rises, so do stocks. When it stops rising, bonds are able to hold their own. The ratio, he says, rose after World War II into the 1970s and then briefly during the dot-com boom in the late 90s. What Ive noticed just recently is the capital-labor ratio after 15 years of being flat since the dot-com top is starting to go up again, he says.