4/12/19 – Friday Rally Pulls S&P 500 Positive

I’m heading out of town this afternoon, so the weekly report is coming out a few hours early today. Stocks rallied today on strong earnings from JP Morgan and positive comments on the economy from JP Morgan CEO Jamie Dimon. During the earnings call, Dimon told investors that consumers were strong, balance sheets were strong, companies have plenty of capital and said that the current expansion, “could go on for years. There’s no law that says it has to stop. We do make lists and look at all the other things: geopolitical issues, lower liquidity. There may be a confluence of events that somehow causes a recession, but it may not be in 2019, 2020, 2021.” While the economy has slowed from 2018, it appears to still be going strong. As of the time of writing, the Dow is down 0.2% for the week while the S&P 500 is up 0.4%. Read More

Disney announced its own streaming service for kids will launch in November. Disney+ is priced well below Netflix, at $6.99/mo, but primarily includes kids programming. Disney hopes to have 60-90 million subscribers in five years. This will be Disney’s third streaming package, supplementing ESPN+ and Hulu. About a year ago Disney announced it was pulling all its content from Netflix and was creating its own direct-to-consumer streaming option. It’s fascinating to see how the media market is changing. It seems every media content company has its own streaming plan now. Showtime, HBO, Disney+, Netflix, Amazon Video, Hulu, ESPN+, CBS All-Access, etc, etc. Consumers, myself included, have long wanted to be able to pick channels a la carte instead of being stuck with cable bundle. While we’re not fully there yet, we’re rapidly approaching that point, which is raising new issues. Consumers end up paying 4-7 different companies every month for shows/movies. It’s easy to end up spending just as much as you were before with cable by the time you add in all the various streaming services you need to get the shows you want to watch. Read More 

Oil increased 1.3% this week to close at $64.13/barrel. The yield on the 10-yr Treasury moved higher, closing at 2.55% from 2.49% last week. The average rate on a 30-yr fixed rate mortgage moved higher, to 4.12% from 4.08% a week ago.

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