| The KUIK Market Update for Monday, January 13: | |||||||
| Markets are mixed. | |||||||
| Index | Direction | Change | Units | Last | Time | Change | |
| Dow | Down | (23) | points | 16,413 | 8:10 AM | ||
| S&P500 | Down | -0.12% | percent | 1,840 | (2.14) | ||
| Nasdaq Composite | Up | 0.03% | percent | 4,176 | 1.05 | ||
| 30 Year Treasury | Down | (0) | Basis Points | 3.79 | Annual Yield | ||
| A Goldman Sachs analyst says stocks are looking overvalued. David Kostin writes that the current price-to-earnings multiple on the S&P 500 is about as high as it can get unde rcurrent conditions, both as measured by the index (15.9 times) and the median stock (16.8 times). Since stocks surged higher in 2013, Kostin doesn’t see the ratio widening to 17 or 18 times, as “many investors expect”. Rather, a continued rally in stocks will hinge on profit growth. When inflation is considered, the S&P500 looks slightly overvalued and he believes it will only have a 3% gain by the end of the year. | |||||||
| Friday’s employment report may have been an outlier. The Conference Board’s employment trends index rose slightly in December but is up 5.2% gain from 2012. While it up just 0.03% on a monthly basis, it’s the fifth increase in six months for the index that looks at eight different labor-market indicators. The Conference Board’s director of macroeconomic research Gad Levanon says the six- and 12-month direction of the employment trends index points to solid jobs growth ahead. | |||||||
| Serving the West Side first, I am Bill Roller of BR Capital for AM 1360 KUIK. | |||||||
| http://blogs.marketwatch.com/thetell/2014/01/13/goldmans-kostin-stocks-are-starting-to-look-overvalued/ | |||||||
| http://blogs.marketwatch.com/capitolreport/2014/01/13/conference-boards-employment-trends-index-paints-payrolls-report-as-outlier/ | |||||||
| For today’s Market Update Report click to listen-> | |||||||