Business

Submitted by John Mauldin via MauldinEconomics.com,

It’s quarterly report time for US stocks. If you just casually glance at the earnings news, you might think companies are having a great year. Many are beating expectations and reporting impressive revenues and profits.

The markets reward companies for meeting expectations (as we shall see below). But the reality is that the S&P 500 is on track for a sixth straight drop in year-over-year earnings.

On one hand, China’s recently implemented home-buying curbs to cool the runaway property market worked in October, when following a slump in property sales volume new-home prices gained last month in 62 of the 70 cities tracked by the government, declining from the 63 recorded in September, the National Bureau of Statistics said Friday. Prices dropped in seven cities, compared with six a month earlier. 

Did OPEC just run out of short-squeeze ammo?

On any normal day the following two headlines from OPEC would have sent oil prices soaring....

• IRAQ OIL MINISTER 'OPTIMISTIC' OPEC WILL CLINCH OUTPUT DEAL
•  IRAQ OIL MINISTER SAYS DIFFERENCES NARROWING OVER OPEC OUTPUT DATA

But it appears the jawbone ammo has run dry...

Now this is geting funny (for all those not in the stock that is)...

On the back of a stunningly colossal surge in volume, DRYS is halted once again this morning after rally 65% (following yesterday's 85% collapse... whch followed a 1500% rise the previous 5 days)...

+12%, +133%, +14%, +215%, +70%, -85%.. and today +65% (so far)

Amid a bounce back in the FANG stocks, the Nasdaq has recovered from its post-Trump laggardness to surge past previous record highs this morning... proving that 'everything' is awesome.

FANGs remain red post-Trump but are bouncing aggressively this morning...

As volume contnues to dribble lower...

Will it hold?

Notably Nasdaq futures remain below their record high (for now)