Kena Solutions on LinkedIn: “May the 4th Be with You” Companies survive on data but thrive on data… (2024)

The Week That Was — Work Is a Four Letter WordThe labor market blessed and cursed investors hopes this past week.The week kicked off with hotter than expected labor costs raising concerns about the persistence of rising inflation.The week ended with a cooler than expected jobs report highlighting the fact that employment conditions might be on the side of consumers.All of the above damned if you do, damned if you don’t wrangling has investors in a stew and the Fed’s data dependence resembling Audrey 11 in Little Shop of Horrors “Feeeed me Seymour. The Fed stayed put on interest rates as it continued to digest economic data, respond to the recently raised “if not when” question on a date, all while trying to balance a ravenous investor audience with a consumer base plagued with rising costs. I paid $4.39 cents for a dozen eggs this week. On the market front, first-quarter earnings have been better than anticipated, the one wrinkle being “forget what you have done for me lately,” what and where is future growth coming from?Most of the responses to this have been positive.Enjoy what’s left of the weekend, work will be there waiting for you in the mornings and remember “If you love what you do, you’ll never work a day in your life.”Yeah right!!!

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An Apple a Day Keeps the Storm Clouds AwayThe market catapulted over 500 big one out of the gates this morningon the strength of Apple’s earnings, slowing job growth, and rising unemployment.Apple’s iPhone sales were off but increased share buy backs and margins increasing inducted investors to take a second bite, so to speak, at what they hope is the market’s return to its winning ways.Don’t know if Apple’s apples are organic but “Apple’s gross margin expanded to 46.6%, continuing an upward trajectory that reflects the company’s growing services business, which brings with it stout profits.” - CNBC. All of the aforementioned putting back in play a rate cut “sometime” this year. “Investors will interpret today’s weak jobs report as a sign that demand is slowing in the labor market,” said Richard Flynn at Charles Schwab UK. “A dive in the labor market may be what it takes to push the Fed from a stroll to a sprint.”Down the Shore the morning like the market paid homage to the late. Great Jimi Hendrix’s Purple Haze “Scuse me while I kiss the sky.”

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Housing Market Forecast for 2024 Elevated mortgage rates, out-of-reach home prices and record-low housing stock are the perennial weeds that experts say hopeful home buyers can expect to contend with this spring—and beyond. “The housing market is likely to continue to face the dual affordability constraints of high home prices and elevated interest rates in 2024,” said Doug Duncan, senior vice president and chief economist at Fannie Mae, in an emailed statement. “Hotter-than-expected inflation data and strong payroll numbers are likely to apply more upward pressure to mortgage rates this year than we’d previously forecast.” “If the 2020-2021 housing market was too hot, then the 2023 market was probably too cold, but 2024 won’t yet be just right,” Fleming said in his 2024 forecast. We’re definitely looking forward to a better housing market in 2024 as interest rates start to settle around 6% or even lower. - Forbes

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Texas Hold ‘EmThe markets highly volatile response to the Fed’s nudge nudge wink wink implication that it will not raise was both predictable and a head scratcher.The Fed’s Data Dependent approach is beginning to feel like an extended game of Texas Hold “Em.The two hole cards, (the illusive 2%) have been dealt.“The Flop" cards, initial jobless claims, factory orders, and April non-farm payrolls will be dealt today and tomorrow. "The turn" card Apple Earnings will be dealt after today’smarket close. The final or "The river" card will manifest itself in the market’s reaction to all of the above.Over the past few days the betting has been ferocious with 500 hundred point moves whipsawing around the table. “The player who has the best hand and has not folded by the end of all betting rounds wins all of the money bet for the hand’.The objective of winning players is not to win every individual hand, but rather to win over the longer term by making mathematically and psychologically better decisions regarding when and how much to bet, raise, call or fold. Winning poker players work to enhance their opponents' betting and maximize their own expected gain on each round of betting, to thereby increase their long-term winnings.’- WikipediaStock futures are anteing up this morning after the jobless claims release.Down the Shore the outlook continues to be murky. We find ourselves in a little bit of an etherizedstate because of“The yellow fog that rubs its back upon the window-panes.’). T.S. Eliot. Make it a great day.

Federal Reserve holds rates steady. Here's what that means for your money.Federal Reserve officials said they are leaving their benchmark rate untouched, noting that progress in taming U.S. inflation has stalled. What does the rate decision mean for your money?Expect to continue to pay high rates to borrow money, noted Jacob Channel, senior economist at LendingTree.Mortgage rates are likely to remain above 7%, at least in the near term, he added. Credit card rates, which are at recordhighs, are sure to remain elevated, he noted. "Across the board, it's all expensive," Channel said. "The interest rate on a credit card will make the interest rate on a mortgage look minuscule by comparison."On the bright side, savers are likely to continue to find higher-interest savings accounts, with some offering yields above 5%, according to Ken Tumin, banking expert at DepositAccounts.com. Certificates of deposit and other savings vehicles can also offer robust rates.- CBS News

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When Ducks Are Not in LineGround's Control to Major TomYour circuit's dead, there's something wrongDavid BowieThe Fed looks like it has finally gotten its ducks in line policy wise, but, unfortunately, inflation is having none of it.For some time now the Fed has been in a holding pattern waiting for clearance to land (ease) and it appears that that is not like to change this afternoon.Traders, who were slow on the uptake about what the Fed has been laying down, are now looking for some direction — a direction they are not going to be happy with — higher for longer.Stock futures are losing altitude premarket, AI appears to be in a bit of a tail spin, and oil ain’t exactly straightening up and flying right. There is also a crap ton (doesn’t sound as offensive somehow or other) of economic releases in the wings, job openings and manufacturing data being at the head of the pack. Down the Shore, the morning got off to a sluggish start. The sun decided, I’ve had enough of this, I’m pulling the covers over my head and staying where I am.Unfortunately, traders do not have that luxury in what could be a pretty hectic day. Make it a great one.

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How mortgage rates have impacted the spring housing market “The biggest thing when we’re looking at mortgage rates right now is volatility,” said Nicole Bachaud, a senior economist at Zillow Group. While some buyers have come to terms with 7% interest rates, the volatility of rates is “really the thing that’s going to impact the [housing] market the most,” Bachaud said. When rates bounce around from week to week, a buyer looking into a house one day might not be able to afford the same property the next day, she said. For example, a homebuyer hoping to secure a $400,000, 30-year fixed-rate mortgage might have gotten a rate of about 6.82% in early April, according to Freddie Mac and Fed data. That works out to a monthly mortgage payment of around $2,613. Two weeks later, rates were hovering at 7.10%. That slightly higher rate adds $75 to the monthly mortgage payment, or $27,000 over the life of the loan. - CNBC

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A Hair of the DogFutures woke up a little on the fuzzy side this morning following some pretty serious partying of late.Conventional (party hearty) wisdom would be have a hair of the fog to steady yournervescarry on.Meanwhile Wall Street wisdom is tsk tsking and reminding us of Mega cap earnings, Fed Speak, and escalating geopolitical unrest screwing with oil prices. Hold on to your hats and make mine a “Bloody.”Make it a great day. And I'm a victim of life's circ*mstancesWell I was raised around bar rooms andFriday nightdancesSingin' them old country songsAnd half the time ending up some place I don't belongDelbert McLinton

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