Very few research firms have been cautious or negative on the BABA, but at Hedgeye, we’ve been on the other side of consensus.
In today's edition of RTA Live, Hedgeye CEO Keith McCullough did not mince words when asked about Alibaba.
RTA Live is available exclusively to Real-Time Alerts subscribers.
Relied upon by big institutional and individual investors across the world, this granular morning newsletter distills the latest and most vital market developments and insures that you are always in the know.
In today's edition of RTA Live, Hedgeye CEO Keith McCullough ran through the Real-Time Alerts positions as of 10:30AM ET and answers subscriber questions on $RH, $BABA, and more.
Takeaway: The last time jobless claims were this low it was the year 2000. $45 oil, however, continues to take its toll on energy states.
Below is the detailed breakdown of this morning's initial claims data from Joshua Steiner and the Hedgeye Financials team. If you would like to setup a call with Josh or Jonathan or trial their research, please contact
Claims Match Y2K Lows, While Energy State Labor Weakness Persists
Total initial claims showed an impressive decline in the latest week, falling -80k Y/Y to 265k (SA) and putting in their lowest reading since 2000. NSA claims, meanwhile, were lower by -22% Y/Y on a single week basis. There don't appear to be any special factors in the report.
It's worth noting that while Y2K started out decently from an equity market performance standpoint, the S&P 500 was down 10% by the end of that year and went on to lose another 13% in 2001 and 23% in 2002.
For the last several weeks we've been calling out the performance of the eight energy states (AK, LA, NM, ND, OK, TX, WV, WY) to gauge whether labor conditions there are diverging from the country as a whole. In the latest week it appears the spread between the country and the basket of energy states remained steady at around 15 points. For reference, we've indexed the two series back to May of last year and we're interested in the spread between the two indices. The two charts below illustrate this dynamic.
Prior to revision, initial jobless claims fell -42k to 265k from 307k WoW, as the prior week's number was revised up by 1k to 308k.
The headline (unrevised) number shows claims were lower by -43k WoW.
Meanwhile, the 4-week rolling average of seasonally-adjusted claims fell -8.25k WoW to 298.5k.
The 4-week rolling average of NSA claims, another way of evaluating the data, was -9.2% lower YoY, which is a sequential improvement versus the previous week's YoY change of -8.0%
Joshua Steiner, CFA
Jonathan Casteleyn, CFA, CMT
Takeaway: Net yields guidance uninspiring and European commentary a little tenuous
The chart below describes one reason why there was mismodeling for fuel and how the Street missed FX impact.
For your reference, we have reattached our past pricing survey. http://docs.hedgeye.com/HE_Cruise_Pricing_JAN2015_Wave.pdf
Q & A
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