Can’t keep a good bull market down. Markets around the world continue to respond to largesse of central bank with virtually every market that is trading right now in the green and the U.S. futures tracking higher. For reference, the S&P 500 is a very modest 27 points from its all-time highs. Bonds continue to be well bid with yields this morning down pretty much everywhere as well (although Canadian and U.S. government yields are marginally up off recent lows). Where does it stop? And if you wish to get vertigo take a look at a one year graph of the U.S. traded weighted dollar spiking higher again yesterday. On a long term basis though – breaking out of a base and more to go technicians say.
In the news – flash PMIs from Markit are out and are generally decent relative to expectations and the previous month. China remains below 50 but it is better than last month. We’re awaiting PMI in the U.S. after 9 a.m. k and existing home sales and the leading index.
The new low list is virtually empty (with the exception usually of energy and materials names) however, one surprising name on the TSX – TMX Group trading at $46.89 and a 3.4% dividend yield is plumbing the depths trading at the lowest level since October 2013. Increasing competition and listing worries likely to blame – but is there value? On another interesting note, bulls have been lining up for Bank of America (BAC) if the options market is any indication with 60,000 March 16 calls traded yesterday.
Finally, according to Barclays, one of the ways (of course, just one) to look for the next takeover in the mid-cap U.S. banking space is look at the age of the CEO. Goldsmith, the CEO of City National is 63. Banks with CEOs of 63+ in Barclays coverage includes M&T Bank (MTB) , TCF Financial (TCB) and Comerica (CMA).
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