The SpaceX launch of its Falcon Heavy rocket yesterday is very exciting news for the future of space exploration.  From the linked Stratfor article:

SpaceX’s process of disrupting the space industry remains long and prosperous. The private company has successfully launched its Falcon Heavy rocket, sending its “payload” spacecraft, which in this case carries founder Elon Musk’s personal midnight cherry-colored Tesla Roadster, on the path to its Earth-Mars orbit around the sun. SpaceX is far and away the leader of the space exploration private sector, having seized on a distinctive, multi-pronged strategy to increase the frequency of its launches while driving costs down. The company has taken advantage of industry competition to negotiate lower costs for its materials, while at the same time utilizing savvy techniques to retool and sometimes completely reuse various rocket designs and models.

With the Falcon Heavy’s development and launch, SpaceX has again applied its money-saving ethos to make industry strides. Instead of designing a new rocket from scratch, the company has essentially strapped together three of its smaller Falcon 9 launch vehicles to achieve the level of power needed to allow the payload it is carrying — Musk’s Roadster — to escape Earth’s gravitational pull. SpaceX competitor United Launch Alliance uses a similar technique for its Delta IV Heavy rocket.

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Earnings led Melt Up

by Laura Ehrenberg-Chesler on January 29, 2018 in Earnings

As Ed Yardeni stated this morning in his daily research piece, most market “melt-ups” are led by a P/E expansion. The current “Melt Up” is being led by an earnings expansion. From Ed Yardeni: “The short answer to the meltup question is that the stock market is in a meltup, in our opinion; but as […]

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Economy will benefit from Tax Reform

by Laura Ehrenberg-Chesler on January 26, 2018 in Employment

Many companies are now announcing various ways the new tax reform bill will stimulate capital spending and therefore the economy. This is helping to lift industry and their employees beyond the immediate bonuses. From well known companies like Apple and Kimberly-Clark to lesser known companies like Amicus Therapeutics, there is a rush to bring money […]

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Truck Shortage is Another Indicator of the Strong Economy

by Marilou Moursund on January 24, 2018 in Economic Indicators

The Wall Street Journal had an interesting article today about the shortage of trucks in the U.S.  From the linked article: Several factors have converged to overwhelm the trucking market. Freight volumes in December hit near-record levels for that time of year, on the back of a strengthening economy. Retailers are replenishing stocks after one […]

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Expectations for Earnings heading Up; Valuations stay Reasonable

by Laura Ehrenberg-Chesler on January 16, 2018 in Earnings

Stocks prices have been on a solid upward trajectory as we all know but, so have earnings estimates. This is from Ed Yardeni today: “(1) 2018 and 2019. The Tax Cut and Jobs Act (TCJA) passed at the end of last year is already boosting earnings estimates. Joe reports that analysts’ consensus estimates for S&P […]

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U.S. Manufacturing Has Strongest Year Since 2004

by Marilou Moursund on January 4, 2018 in Earnings

Manufacturing data confirms the strong earnings that companies have been reporting.  The factory index came in at 59.7(readings above 50 indicate expansion), and the new orders index at 69.4 is the highest in 14 years.  From the linked Bloomberg article: The survey-based measure of factory activity — the year’s second-highest behind September, when storm-related supply […]

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Fed Hikes Rates a Quarter Percent

by Marilou Moursund on December 14, 2017 in Employment

As was widely expected, The Federal Reserve raised rates yesterday by a quarter of a point.  From the linked Bloomberg article: Federal Reserve officials followed through on an expected interest-rate increase and raised their forecast for economic growth in 2018, even as they stuck with a projection for three hikes in the coming year.  “This […]

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Productivity: A potential positive surprise for the market

by Laura Ehrenberg-Chesler on December 12, 2017 in Economic Indicators

From the “Wall Street Journal”: “Perhaps 2018 will be the year productivity finally begins to pick up. Technologies such as speech recognition, online chatbots and machine learning are being quickly adopted, capital spending is picking up and tight labor markets give companies an incentive to find better ways of working. “… productivity leapt 3% in […]

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Q3 GDP Revised Upward to 3.3%

by Marilou Moursund on November 29, 2017 in Economic Indicators

The initial estimate of Q3 GDP growth was 3.0%, and it is now revised upward to 3.3%.  From the linked Bloomberg article: Consumer spending, which accounts for about 70 percent of the economy, continues to be the main driver of growth, though revisions showed it was slightly weaker than previously estimated on purchases of both […]

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Aristotle’s Thought for the Day

by Laura Ehrenberg-Chesler on November 17, 2017 in lifestyle

“The only way to avoid criticism: Do Nothing Say Nothing Be Nothing”

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