How do you know stocks are a little overextended? A good indicator is when even the most bullish sellside analyst on Wall Street, Morgan Stanley's Michael Wilson, whose year-end price target of 2,700 is the highest of all his peers, warns that stocks may see "pullback or consolidation" and that the coming earnings season may be a "sell the news event."
Here comes even more of that deflation the Fed hates so much.
Walmart stock is getting whacked, as is the broader grocer sector, after Amazon announced moments ago that the acquisition of Whole Foods will close on Monday, and that in keeping with the company's tradition of stealing market by underpricing its competition, it will cut prices at Whole Foods once the deal closes.
Authored by John Mauldin via MauldinEconomics.com,
“Companies are doing everything they can to get rid of pension plans, and they will succeed.”
– Ben Stein
“Lady Madonna, children at your feetWonder how you manage to make ends meetWho finds the money when you pay the rent?Did you think that money was heaven sent?”
– “Lady Madonna,” The Beatles
Heading into Monday's session, the S&P had gone for 34 consecutive trading sessions in which it hadn't experienced an intraday move greater than 1%: according to the WSJ's Market Data Group, this was the longest such streak going back over two decades, to 1995. And, following the Monday close, the market made history when it ended yet another day by being confined to a 1% trading range. This made it 35 consecutive sessions without an intraday move of 1% or more.