Our cartoonist Bob Rich captures the tenor on Wall Street every weekday in Hedgeye's widely-acclaimed Cartoon of the Day. Below are his five latest cartoons. We hope you enjoy his humor and wit as filtered through Hedgeye's market insights. (Click here to receive our daily cartoon for free.)
1. No Mirage (5/13/2016)
Despite Retail Sales numbers beating consensus estimates, the year-over-year growth numbers have been declining since the second half of 2014. Slower growth? That explains why retailers like Kohl's (KSS) and Nordstrom (JWN) got crushed this week. We reiterate our #ConsumerSlowing call.
2. The Spin Cycle (5/12/2016)
"While it should surprise no one who has been on the right side of the US economic, profit, and credit cycle call that the #LateCycle Sectors of the US Economy (Financials, Consumer Discretionary, Tech, Healthcare) are the biggest dogs for the YTD, the pace of the decline in the US Retail (XRT) sub-sector of consumer has caught many off-side this week," Hedgeye CEO Keith McCullough wrote in the Early Look this morning.
3. Precious Metals (5/11/2016)
It's been a tumultuous 2016 for investors but there's always a bull market somewhere. Gold is up more than 20% this year.
4. Dead On Arrival (5/10/2016)
A brief update on earnings season:
- 441 of 500 S&P 500 companies have reported their Q1 2016 numbers
- Aggregate SALES growth is DOWN -2.4% year-over-year
- Aggregate EARNINGS growth is DOWN -8.9% year-over-year
- Ex-Energy (EPS -109% y/y), Financials have EARNINGS DOWN -14.3% year-over-year
- Ex-Energy, Technology has EARNINGS DOWN -8.4% year-over-year
5. An (Increasingly) Red Book (5/9/2016)
Chinese equities were down hard overnight (Shanghai Comp down another -2.8% and -47% from 2015’s high) on terrible export (-1.8% y/y APR vs. +11.5% MAR) and import (-10.9% y/y APR vs. -7.6% MAR) data. To be clear, we’re not in the everything has “bottomed” camp.