Yesterday, the market finished higher than I imagined it would. In the middle of the day, momentum engaged and the market kept it going. Although I understand why the market is drifting higher overall, I find it curious that market bounced so high yesterday. Perhaps, like consumer sentiment in August, market sentiment is changing to the positive.
Consumer sentiment improved in early August to its highest level in three months as sales at retailers and low mortgage rates spurred Americans to boost their buying plans.
Given this morning’s wimpy market movement, I should put my “thought” about market sentiment changing to the positive on pause, yet, as I have said before, this is the beginning of the season when corporate profits rise, if the consumer comes out to spend.
“The indicators point to slow growth through the end of 2012,” said Ken Goldstein, an economist at the Conference Board. “However, back-to-school sales are better than expected, suggesting that the consumer is starting to come back,” he said.
A rise in consumer sentiment and early indications that the back-to-school shopping portion of the big shopping season is going well bring me back to the notion that the market sentiment is changing. The market just seems more relaxed, and the “fear gauge” stepping into 13 territory supports this notion. Oh, it will bob up again before too long, especially with Germany’s Constitutional Court ruling looming (overarching banking authority, September 12) and the US elections closing in. Oh, did I forget the increasing rhetoric about the US debt and the fiscal cliff? Sorry about that.
Even with the verbal nonsense coming, the market still might feel a bit more positive. Although we have heard words, words, and more words from the EU policy makers, the recent rather strong statements from Mr. Draghi and Ms. Merkel suggest the powers-that-be just might be getting closer to the big step of unleashing the power of the ECB. Perhaps the market is sensing that action sooner rather than later. Maybe …
The U.S. franchise industry consists of more than 825,000 businesses that employ more than 9.1 million people. The industry consists of 9 percent of the private output of the U.S. economy, according to reports from the International Franchise Association.
If the above statistics are true, what does that mean for market players? Yes, McDonalds is a franchise, as is a host of other successful enterprises, but are there any young upstarts out there, a newly minted public corporation franchise that is a rising star? There is work to be done here, but it might be worth it – 825,000 businesses, really?
Verizon will pay $3.6 billion for wireless airwaves owned by Time Warner Cable, Comcast, Cox Communications and Bright House Networks. The spectrum purchase won’t just allow Verizon to expand its wireless data network, but will also allow the cable partners to market their services in Verizon retail stores. The agreements could speed the way to cellphone, cable, Internet and home phones (if those still exist) appearing on a single monthly bill.
Wow! Although the deal ain’t done yet (still needs more government approval), this could be a game changer in many ways, but the wireless world will change for sure. What will AT&T do?
Trade in the day; Invest in your life …
