Business

Just days after Third Point's Dan Loeb took a victory lap in his latest letter to investors, boasting a 14.5% YTD performance, outperforming the S&P and virtually all of his peers, a decidedly more downcast letter was released today by Greenlight's David Einhorn, who also had a good quarter, generating 6.2% in Q3, which brought his YTD return to 3.3% after a subpar first half. Yet despite the solid Q3 performance, Einhorn admits that "the market remains very challenging for value investing strategies, as growth stocks have continued to outperform value stocks.

Some question if “Pigs Can Fly.” I don’t know if they can or can’t, of late though, Piggy Banks are flying high and breaking out.

We have highlighted positive bank patterns of late and three weeks ago we shared that the banking sector was sending bullish signals and Regional Bank ETF (KRE) looked like they were ready to break out of a bullish flag pattern, See Post HERE.

Authored by Lance Roberts via RealInvestmentAdvice.com,

This past weekend, I discussed how the current rally since the election has been based on “hopes” for tax cuts and tax reforms as there was little evidence currently to suggest it was based on fundamental underpinnings. To wit:

Preliminary prints for October Services and Manufacturing in America beat expectations and rose to 2017 highs pushing the composite index to its highest since January.

Commenting on the flash PMI data, Tim Moore, Associate Director at IHS Markit said:

“The US economy seems to have made a strong start to the final quarter of 2017. Resilient service sector growth and an encouraging rebound in manufacturing production combined to generate one of the sharpest rises in private sector output for twoand-a-half years during October.

Amid the Dow Jones making fresh all time highs on the back of solid earnings by key Dow components, a largely unreported adverse development for the critical - for tech companies - ad sector has gone largely unnoticed this morning, when ad giant Interpublic reported a miss on 3Q adjusted EPS and revenue estimates, with CEO Michael Roth warning that "organic revenue was negatively impacted by broader trends that are being felt throughout much of the industry."

Interpublic now sees FY organic revenue growth of 1%-2%, below Jefferies' estimate of 2.1%.