Category: TRENDS ON THE U.S. ECONOMIC FRONT

Yields on ten-year U.S. government bonds rose to 1.344 percent on 19 February from 1.286 percent the week before, the largest weekly increase since 8 January, lifting yields from the 1- to 1.2-percent range where they have traded for much of the last month. Thirty-year bond yields edged up to 2.140 percent from 2.076 percent...

Last week, investors traded the safety and low yields of government bonds for the promise of gains from stocks that will rise with the economy, particularly those of companies in the energy and financial industries. The Russell 2000 small-company index gained 48.3 points, about 2.2 percent, to close the week at 2,266.69. In contrast, U.S....

As investors seek ever-higher yields, risky companies are finding ready buyers for bonds carrying higher interest rates than U.S. treasury securities or blue-chip corporate debt can offer. Community Health Systems, the Gannett newspaper chain, and other companies whose credit is rated below investment grade have sold $139 billion in bonds from 1 January through 10...

The Big Apple’s home prices soured in January at the fastest annual rate on record, falling 5.4 percent in Brooklyn and 6.2 percent in Manhattan, according to data firm StreetEasy. The price plunge drove sales higher compared with a year earlier. Brooklyn closed 17.3 percent more deals than a year earlier; Manhattan sales jumped 30.8...

Despite surging demand among buyers for new homes, housing starts slumped 12 percent in January from December due, in part, to the scarcity of lumber, rising costs of building materials, and disruptions in supply due in part to wildfires and heavy weather, industry analysts said. Partly as a result, the number of new homes permitted...

The U.S. Federal Reserve warned of the growing risk of business bankruptcies and plunges in commercial real estate values in its semi-annual Monetary Policy Report, delivered to the U.S. Congress on 19 February. “Business leverage now stands near historic highs,” the report noted. “Insolvency risks at small and medium-size firms, as well as at some...

As we have been forecasting, and with the data we have been providing, get ready for higher inflation.  Prices for lumber and building materials are setting new records as low-interest rates and a dearth of homes for sale surge consumer demand for new houses. However, 2020’s manufacturing slowdown and wildfires in the western U.S. have...

We forecast it before, and we continue to do so. There will be a BIG economic bounce that will be heard across the world as lockdown restrictions ease, vaccination rates increase, and continued streams of cheap government and central bank money continue to flow into the economy. Ready to break loose and feel free, there...

Over the 20 trading days ending 11 February, an average of 15.8 billion shares was traded on U.S. equity markets, Bloomberg reported.  The number came close to the 20-day average of 16.1 billion shares reached last 25 March as the economy was crashing, panicked investors were dumping their portfolios, and opportunists were scooping up bargains....

Nashville-based LifePoint Health, a company with 80 rural hospitals and owned by private equity firm Apollo Asset Management, is negotiating to buy Ardent Health Services, which operates 30 hospitals in six states. The deal would create a $10-billion hospital chain. Ardent operates acute-care hospitals in growing urban and suburban areas, mostly in Oklahoma and Texas. ...