It's The Economy Stupid: Fundamentals Matter

October 19th, 1987. 25 years ago today I survived the Black Monday stock market crash. The first of the 3 major stock market crashes that I have experienced while working in the investment business. It can be a little stressful at times...

 

It’s appears that corporate earnings fundamentals are not growing like investors had hoped.  And the market sell off appears to augment that view.  The thing is, analysts have been scaling back their earnings estimates for months and companies have been guiding lower for months. So this really isn’t a surprise.  Time to take off the rose colored glasses…

 

Description	Ticker	Last	CHANGE	% Chg Today	Pct Chg 1Yr
STOCK MARKETS
Dow Jones Industrial Average	INDU Index	13343.510	-205.4300	-1.5162	16.0110
S&P 500 Index	SPX Index	1433.170	-24.1700	-1.6585	18.2943
NASDAQ Composite Index	CCMP Index	3005.623	-67.2440	-2.1883	15.4684
Russell 3000 Index	RAY Index	844.650	-14.0900	-1.6408	18.4889
Russell 2000 Index (Small)	RTY Index	821.000	-16.1200	-1.9257	18.2352
S&P 400 Mid Cap Index	MID Index	987.280	-13.9600	-1.3943	17.4968
S&P 600 Small Cap Index	SML Index	466.570	-2.3100	-0.4900	21.9950
TREASURIES	% Yield
3 Month Treasury	0.0963		-0.0050	-5.2632
6 Month Treasury	0.1420		-0.0100	-6.8966
2 Year Treasury	0.2945	99.914	0.0078	0.0078
5 Year Treasury	0.7541	99.398	0.1797	0.1811
10 Year Treasury	1.7712	98.742	0.6172	0.6290
30 Year Treasury	2.9404	96.328	1.5938	1.6823
ENERGY
Crude Oil, Brent Index	Brent Crude	110.080	-2.3400	-2.0815	7.5322
Crude Oil, Louisiana Lt. Sweet	LA Lt Sweet	110.210	-1.6900	-1.5103	-1.5200
Natural Gas, Henry Hub Index	Nat Gas	3.586	-0.0010	-0.0279	-15.5378
PRECIOUS METALS
Spot Gold $/oz	GOLD	1731.640	-9.6600	-0.5548	5.5328
Spot Silver $/oz	SILVER	32.083	-0.7138	-2.1765	2.7036
CURRENCIES
Euro	EUR Curncy	1.302	-0.0043	-0.3291	-5.3775
Japanese Yen	JPY Curncy	79.290	0.0100	0.0126	-3.1640
British Pound	GBP Curncy	1.600	-0.0042	-0.2618	1.4835
Swiss Franc	CHF Curncy	0.928	0.0034	0.3676	-2.7676
Canadian Dollar	CAD Curncy	0.993	0.0079	0.8018	2.7280
Chinese Yuan	CNY Curncy	6.254	0.0035	0.0560	1.9924
FOREIGN INDICIES
FTSE 100 INDEX	UK	5896.150	-20.9000	-0.3532	8.1765
CAC 40 INDEX	FRANCE	3504.560	-30.6200	-0.8662	10.9972
DAX INDEX	GERMANY	7380.640	-56.5900	-0.7609	24.8094
NIKKEI 225 INDEX	JAPAN	9002.680	19.8200	0.2206	3.7308
HANG SENG INDEX	HONG KONG	21551.760	33.0500	0.1536	19.5612

 

 

 

John Broussard

Assistant State Treasurer

Chief Investment Officer

State of Louisiana

Department of the Treasury