Canadian bank stocks are as hot as can be after gaining major ground in the past two years, with the average Big Six titan more than doubling over the time span. Obviously, this kind of momentum can’t last forever, but at the same time, if things all align for the big banks, there’s really no telling how this smooth ride higher will end.

Indeed, it feels like the big banks are long overdue for some kind of vicious valuation reset or, at the very least, a mild, run-of-the-mill correction. The bank stocks are starting to look just a tad on the overvalued side. After all, it has been quite a while since the big banks were trading with price-to-earnings (P/E) ratios in the high teens.

And if this red-hot run continues onward into the fourth and final quarter of the year, the 20 times P/E could become the new normal, as could the 2% yield. For income investors who’ve gotten used to the banks trading in the low-teens P/E with a 4-5% dividend yield, it feels like the banks are too frothy to even think about touching at this juncture, even after yet another strong season of quarterly earnings results.

Another big season of earnings is just weeks away

For the most part, the latest bank earnings season was impressive. Though not every Big Six bank rallied out of the gate, especially given what were some pretty elevated expectations going into the summer season. BMO Equal Weight Banks Index ETF (TSX:ZEB), my favourite way to bet on Canada’s Big Six is up 33% year to date but 0% in the past month.

Indeed, a lot rides on the coming wave of earnings, and I think the stakes are just a bit too high to warrant “playing” the names ahead of the big quarterly reveal.

As investors digest the strong numbers while looking out to the late-August earnings season, questions linger as to whether the big banks can keep up the big beats. The expectations bar is just a bit higher, but, for the most part, I think that it’s a bad idea to bet against the Canadian banks as they face their toughest test yet.

In my view, I think there’s no rush to pick up shares of the big bank stocks going into earnings. The trajectory has really flattened in the past several weeks. That’s only healthy, at least in my humble opinion, after the explosive rally that preceded the sideways action.

While I’m not against buying some of the banks before the bell if you’re looking to initiate a long-term position and average into a larger position into any weakness, I think that waiting things out could be the move, especially since stretched P/E multiples and strong results being a given could pave the way for a flat-to-negative reaction.

The bottom line

Even a good number could be met with selling if a “sell the news” kind of reaction unfolds, given how heated the big banks are right now as they flirt with all-time highs with a bit less momentum behind them.

Indeed, a quarterly blowout would be just what the banks need to enjoy another leg higher, but unless you’re willing to put up with stiff downside risks, I’d much rather be a buyer after the earnings season ahead. The banks are unstoppable, but with a low yield and hefty price of admission, I’d say that fortune favours the holders.

The post Here’s What You Should Know About Bank Stocks Before Earnings appeared first on Seaside Success Stories.

The company ended its latest fiscal year with fewer stores overall, even as it continued opening locations for one of its biggest brands. The contrasting moves highlight how fashion retailers are increasingly concentrating their physical presence around their strongest-performing businesses while reassessing weaker ones.

According to the McKinsey & Company State of Fashion 2026 Report, the global fashion industry is projected to grow only in the low single digits in 2026 as macroeconomic volatility, tariff pressures, and weaker consumer sentiment weigh on the sector.

Against this backdrop, one major fashion group is taking a more selective approach to its store network while investing in the brands it sees as having the strongest growth potential.

Although Tapestry Inc. was founded in 2017, its roots date back to the founding of its flagship brand Coach in 1941. The company acquired Kate Spade in 2017, with the deal helping lead to the creation of Tapestry later that year. Both brands are known for their handbags and accessories.

Tapestry closes 64 stores

Tapestry (TPR) closed 64 directly-operated stores during fiscal 2026, ending the year with 1,299 locations as of June 27, 2026, according to its earnings report.

The closures included 24 Coach stores and 40 Kate Spade locations. Coach ended the fiscal year with 973 stores, while Kate Spade had 326 locations.

The latest closures continue a recent pattern for the company. In fiscal year 2025, Tapestry shuttered 40 Coach stores and 37 Kate Spade locations, according to its fiscal 2025 earnings report.

But the company’s latest store strategy is more nuanced than simply shrinking its physical footprint.

While 64 locations closed across Coach and Kate Spade during fiscal 2026, Tapestry opened 66 new Coach stores and six Kate Spade locations, underscoring the company’s shift toward expanding its strongest-performing brand.

Tapestry also sold the Stuart Weitzman brand in August 2025 after closing 17 of its stores during fiscal 2025.

Why Tapestry is closing stores

Tapestry’s financial results help explain why the company is taking different approaches to its two remaining brands.

In fiscal 2026, the company reported:

• Net sales increased 14% year over year
• Coach revenue rose 24%
• Kate Spade revenue declined 10%

Excluding Stuart Weitzman, Tapestry’s pro forma sales increased 18% for the year. Coach was the primary driver of that growth.

Coach’s performance also extended beyond sales. The brand delivered double-digit revenue growth in every quarter of fiscal 2026, while its handbag average unit retail price increased at a mid-teens percentage rate for the full year.

Tapestry also said it welcomed approximately 11 million new customers during fiscal 2026, with about 35% of them from Gen Z.

“Coach is bringing new consumers into the category and growing the market,” said Tapestry CEO Joanne Crevoiserat during the company’s earnings call. “Given the strength of the brand and our large addressable market, we continue to see a clear path to Coach becoming a $10 billion brand.”

The contrast with Kate Spade was significant.

The company said it is taking a more deliberate approach to rebuilding the brand, focusing on marketing, consumer insights, product assortment, and omnichannel experiences.

“Our strategy for Kate Spade has been deliberate and phased, streamlining the business, solidifying the foundation, and positioning the brand to scale,” said Crevoiserat. “At its core, that means building greater brand desire and relevance to drive sustainable, profitable growth.”

The difference in store openings reflects that divergent strategy. Rather than treating its store network uniformly, Tapestry appears to be concentrating physical expansion where it sees the strongest consumer demand, while using closures to streamline Kate Spade’s footprint.

The company also plans to continue investing in its store fleet, refurbishing 80% of its stores between now and fiscal 2030.

Fashion rivals close stores

Tapestry is not alone in reassessing its physical retail footprint. Several major fashion and luxury groups have also closed locations or announced additional shutdowns as they attempt to adjust their businesses to changing consumer demand.

The moves across the sector show that retailers are not necessarily abandoning physical stores, but are becoming more selective about where they operate them. Stronger brands and markets can continue to receive investment, while underperforming locations are increasingly being closed, relocated, or replaced.

Here’s some of my previous coverage of store closures:

• Capri Holdings: Closed 41 locations across its brands in the year ending June 27, 2026.
• Prada Group: Closed 10 Versace stores since the end of 2025 and plans to shutter more locations while relocating select boutiques to stronger markets in 2026 and 2027.
• Kering: Closed 133 locations across its brands in 2025, with an additional 100 store closures scheduled worldwide in 2026.
• Saks Global: Plans to close an additional nine stores following the shutdown of hundreds of locations and its Chapter 11 bankruptcy filing.
• Ferragamo: Closing roughly 70 stores between 2025 and 2026.
• Burberry: Shuttered 21 locations during fiscal 2026.

For Tapestry, however, the latest store changes aren’t simply a sign that the company is retreating from brick-and-mortar retail.

The company’s results suggest a more targeted approach: investing heavily in the brand that is producing the strongest growth, while using closures and a more selective store strategy to reposition the other brand.

That could leave Tapestry with a smaller overall footprint, but a network more closely aligned with where it sees the greatest opportunity for growth.

Related: Sportswear giant continues store closures nationwide

The post Fashion retailer closes 64 stores as it reshapes its business appeared first on Seaside Success Stories.

El Niño looks to reach an intensity unprecedented in recorded history.

Characterized by warmer-than-normal sea surface temperatures in the equatorial Pacific, El Niño occurs every few years. Meteorological agencies and researchers around the world are on high alert because when the heat stored in the ocean is released into the atmosphere, it triggers a chain reaction that affects rainfall, temperatures, and even hurricane activity around the world.

This year’s El Niño has gained strength at an exceptional speed, and it will wreak havoc on everything from fisheries to ski seasons. Not all impacts are bad—the parched Southwest, for example, is likely to see more winter precipitation—but anticipating them is the key to being prepared.

What exactly is happening now, and what might happen in the coming months? Read on to understand what El Niño is, why this one might be a super El Niño, and where its impacts will be most acutely felt.

What Is El Niño?

Declaring an El Niño requires meeting a certain threshold of oceanic heat in the Pacific—specifically, a region known as Niño 3.4. It’s an area that sits between Niño 3 and Niño 4 if you want to geek out even more. In plain language, it’s a region in the eastern-central tropical Pacific.

The US National Oceanic and Atmospheric Administration uses the three-month average sea surface temperature of the region to determine if an El Niño is in effect. If the ocean is 0.5 degrees Celsius (0.9 degrees Fahrenheit) above normal for three overlapping three-month periods, it’s officially an El Niño.

Other weather agencies do things a little differently. Japan’s Meteorological Agency monitors a slightly different region using its own criteria, while the Australian Bureau of Meteorology’s threshold has an atmospheric component as well.

In addition to warmer oceans, the trade winds that blow from east to west also weaken. That allows seawater to pile up on the eastern side of the Pacific. In 1997 and 2015—when El Niño events were among the strongest on record—sea levels rose more than 18 centimeters (7 inches) above average.

All this increases the odds of shifts in weather around the world. There’s the aforementioned increase in rainfall in the Southwest as well as a corresponding decrease in Pacific Northwest precipitation. Atlantic hurricane season tends to be milder as well, with fewer storms.

Indonesia sees an increased risk of drought, as do parts of southern Africa. El Niño also tends to raise the odds of winter warmth in Japan and parts of Australia and Brazil. (We can only speak of probabilities, because El Niño is not the only phenomenon affecting the weather on a given day or in a given season, but the phenomenon tilts the odds.

What Is a Super El Niño?

“Super El Niño” isn’t an official term any meteorological agency uses, but scientists generally use it to define any event where temperatures rise by at least 2 degrees Celsius above average. While there’s no standardized definition, four particular El Niños are ones that check the super box: 1982–83, 1997–98, 2015–16, and 2023–24.

When the Super El Niño occurred in 1982–83, the Colorado River Basin in the US was hit by record-breaking heavy snowfall. Combined with high spring temperatures and rainfall, the river’s flow exceeded 1.5 times the average. Reservoirs upstream filled to capacity one after another, forcing emergency releases, and Lake Mead also reached near-capacity, causing water to overflow from the Hoover Dam spillway for the first time in about 40 years. As a result, the basin suffered significant flood damage. In other words, the impacts of El Niño that may be “good” can still lead to bad outcomes.

In 1997–98, Indonesia was hit by the worst drought in the past half-century, while the 2023-24 super El Niño contributed to the worst drought in over 100 years for southern Africa. Conditions were so extreme that approximately 61 million people needed humanitarian aid.

How Is This El Niño Shaping Up?

There is a greater than 90 percent probability of this El Niño becoming “very strong” this fall and winter, according to NOAA.

Modeling by Berkeley Earth shows that median temperatures for the Niño 3.4 region could reach 3.6 degrees Celsius above normal—even after accounting for the effects of long-term global warming. This would exceed the all-time high recorded during the 2015–16 El Niño by approximately 0.8 degrees Celsius. Given that the difference between the strongest and fifth-strongest El Niño events over the past 150 years was only about 0.5 degrees Celsius, this represents an exceptional level of warming.

The post What Is El Niño? Here’s What It Means for Weather, Water, and Global Economy appeared first on Seaside Success Stories.

(RTTNews) – The Malaysia stock market has moved lower in three straight sessions, slipping more than a dozen points or 0.9 percent in that span. The Kuala Lumpur Composite Index now sits just beneath the 1,525-point plateau and it’s looking at another soft start again on Thursday.

The global forecast for the Asian markets is soft amid continued uncertainty over U.S. trade policies. The European and U.S. markets were down and the Asian bourses figure to open in similar fashion.

The KLCI finished slightly lower on Wednesday following losses from the financial shares and plantations, gains from the industrials and a mixed picture from the telecoms.

For the day, the index slipped 2.68 points or 0.18 percent to finish at the daily low of 1,523.48 after peaking at 1,532.80.

Among the actives, 99 Speed Mart Retail jumped 1.40 percent, while Axiata spiked 1.97 percent, Celcomdigi lost 0.26 percent, CIMB Group sank 0.43 percent, Gamuda surged 2.40 percent, IHH Healthcare was up 0.14 percent, IOI Corporation plunged 2.69 percent, Kuala Lumpur Kepong stumbled 2.26 percent, Maxis rose 0.28 percent, Maybank fell 0.10 percent, MISC advanced 0.94 percent, MRDIY added 0.63 percent, Nestle Malaysia dropped 0.61 percent, Petronas Dagangan soared 2.02 percent, Petronas Gas slumped 0.99 percent, PPB Group shed 0.35 percent, Press Metal tumbled 1.77 percent, Public Bank retreated 1.14 percent, RHB Bank tanked 2.63 percent, Sime Darby plummeted 4.81 percent, SD Guthrie declined 1.07 percent, Sunway climbed 1.06 percent, Telekom Malaysia gained 0.44 percent, Tenaga Nasional improved 0.71 percent, YTL Corporation strengthened 1.12 percent, YTL Power rallied 1.92 percent and Petronas Chemicals, QL Resources and Hong Leong Financial were unchanged.

The lead from Wall Street is soft as the major averages shook off a mildly positive open and headed south through the balance of the session, ending at daily lows.

The Dow dropped 244.95 points or 0.58 percent to finish at 42,098.70, while the NASDAQ sank 98.23 points or 0.51 percent to close at 19,100.94 and the S&P 500 slumped 32.99 points or 0.56 percent to end at 5,888.55.

The choppy trading came as traders seemed reluctant to make significant moves ahead of the release of earnings news from AI darling and market leader Nvidia (NVDA) after Wednesday’s close.

The earnings news after the bell showed that Nvidia beat the street on earnings and revenue, possibly lending support to technology shares going forward.

Lingering uncertainty about President Donald Trump’s trade policies also kept some traders on the sidelines following recent volatility.

Crude oil prices moved sharply higher on Wednesday on news that OPEC will establish output quotas for 2027. West Texas Intermediate crude for July delivery climbed $0.87 or 1.43 percent to $61.76 per barrel.

The post Losing Streak May Continue For Malaysia Stock Market appeared first on Seaside Success Stories.

Canadian income investors looking to turn a $15,000 capital commitment into a meaningful passive income stream have a strong opportunity following the second-quarter 2026 earnings season. Allocating $5,000 into three top-tier dividend-paying Canadian stocks can construct a balanced three-stock mini-portfolio yielding $977.96 in annual passive income.

A $5,000 investment in each of Enbridge (TSX:ENB) stock, Slate Grocery Real Estate Investment Trust (TSX:SRG.UN) and Automotive Properties Real Estate Investment Trust (TSX:APR.UN) units could generate about $977.96 in annual passive income. Here’s how.

Enbridge stock: Buy the post-earnings dip to make steady passive income

A recent 10% dip in Enbridge stock following its July 31 second-quarter earnings installment presents an attractive entry point for long-term-oriented income investors.

ENB stock dropped because GAAP earnings fell short of market forecasts due to temporary margin compression from new capital projects coming online, non-cash charges, and a new share prospectus filing. However, the company’s core cash flow remains solid. With management projecting 2026 distributable cash flow of roughly $5.90 per share, the current dividend payout ratio sits comfortably around 65.8%, well inside management’s target range of 60% to 70%.

It pays “loyal” investors a 5.5% dividend yield from an irreplaceable network of energy pipelines and gas utilities, and Enbridge stock remains a reliable cash flow machine as it dabbles into renewable energy projects.

Investing $5,000 buys approximately 71 shares at recent prices, generating $68.87 quarterly or $275.48 annually in passive income.

Slate Grocery REIT

A $5,000 investment in Slate Grocery Real Estate Investment Trust units can pay you an equivalent of $29.81 CAD in monthly income distributions, translating to C$357.73 per year in passive income at current CAD/USD exchange rates.

Slate Grocery REIT owns 115 grocery-anchored properties spanning 15.2 million square feet located across 23 U.S. states. The portfolio boasts a robust 93.6% occupancy rate and a weighted average lease term of 4.4 years, which provides USD-denominated rental income visibility through 2030.

Slate’s core portfolio strength lies in its below-market rents: in-place rents average $13.10 USD per square foot compared to the U.S. market average of $24.79 USD going into the third quarter of 2026.

During the second quarter, the REIT achieved renewal spreads of 16.7% and new lease spreads of 41%, driving same-property net operating income up 2.3% over the past year. While its adjusted funds from operations (AFFO) payout ratio reached 113.1% due to high tenant improvements and leasing costs, the portfolio’s funds from operations (FFO) payout ratio remained respectable at 87.6%.

With 90.2% of its debt fixed at an average rate of 5%, interest costs remain contained while strong rental spreads may support long-term distribution sustainability.

Automotive Properties REIT

Even as online shopping transforms retail, buying a vehicle remains largely a hands-on experience. Automotive Properties Real Estate Investment Trust capitalizes on this reality by consolidating Canada’s fragmented dealership real estate market. Its acquisition strategy drove a 22.8% surge in rental income and an 18.6% increase in distributable cash flow during the last quarter.

On August 14, 2026, the Canadian REIT announced a 2% distribution increase alongside its second-quarter earnings, marking its second consecutive year of annual raises. The trust owns 95 properties with a long weighted average lease term of 8.1 years providing strong visibility into rental income receipts. A conservative debt ratio of 47.5% leaves ample balance sheet room for future acquisitions.

The REIT’s second-quarter AFFO payout ratio improved to 78.3% from 80.7% a year prior. Its monthly distributions are well covered by cash flow, and management has room for another payout raise in 2027.

Buying 411 shares with a $5,000 allocation secures $28.72 monthly, or $344.75 per year in passive income.

How to make $977.96 in passive income

To make nearly $980 in annual passive income, invest $5,000 in each of ENB, SGR.UN, and APR.UN as follows:

Combining these three holdings creates a diversified income stream backed by essential infrastructure, necessity retail, and prime commercial automotive properties. Splitting $15,000 evenly across all three dividend stocks generates a total payout of about $977.96 every year.

The post Here’s How $5,000 in Each of These 3 Stocks Could Pay You $977.96 appeared first on Seaside Success Stories.

Key Points

• Costco’s valuation is steep, trading at 42-44x forward earnings, but its membership model, strong growth, and customer loyalty continue to justify the premium.

• Strong sales, rising membership income, warehouse expansion, and cash generation could drive further earnings growth.

• 10 stocks we like better than Costco Wholesale ›

Costco (NASDAQ: COST) has a forward price-to-earnings (P/E) multiple in the low- to mid-40s, and investors who might want to buy the stock have a fair question on their minds. Should they feel comfortable owning a warehouse club at one of the richest valuations in the consumer staples sector, or should they trim exposure before the math bites?

Image source: Getty Images.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1/100th the size of Nvidia. Continue »

As of mid-August 2026, Costco’s trailing price-to-earnings ratio is near 48, and its forward multiple is around 42-44, with a five-year price-to-earnings to growth (PEG) ratio above 4. That sits well above the S&P 500 consumer staples group, where the forward P/E is close to 26, and profit growth expectations hover in the low single digits.

Reuters has already flagged Costco and Walmart as the two names driving much of the sector’s valuation stretch, with both trading north of 40 times forward earnings. At these levels, Costco will need years of solid earnings expansion and store growth just to hold its ground. I think it will happen.

Costco’s booming business and membership model

Costco’s business has delivered. In fiscal 2026, Costco reported second-quarter net sales of $68.24 billion, up 9.1% from a year earlier, and net income of about $2.04 billion, or $4.58 per diluted share, up from $4.02. Third-quarter net sales rose 11.6% to $69.15 billion dollars, with diluted earnings per share of $4.93 versus $4.28 dollars last year. Membership fee income grew at a double-digit rate and remains one of the highest-quality pieces of the model, since those dollars arrive at minimal cost and signal loyalty to the brand. Return on equity near 29% and strong cash generation give Costco room to keep investing in new warehouses and digital capabilities while supporting dividends and buybacks.

Costco’s shares hit their all-time high price of $1,094.32 in May. I think by next year, shares will be over $1,200 a pop. I’m not worried about where the stock is trading relative to forward earnings, because Costco’s business model has proven remarkably durable.

Customers keep renewing their memberships, and the company continues to expand its warehouse base, giving it multiple avenues for continued growth. The valuation is high, but when a company consistently delivers strong growth and has customer loyalty, I’m more willing to pay a premium. If you want a durable consumer exposure with strong execution, Costco stock could still make sense at this premium, especially as a core holding sized with care.

Should you buy stock in Costco Wholesale right now?

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Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.

The post Should Investors Be Concerned that Costco Stock Trades at Over 40 Times Forward Earnings? appeared first on Seaside Success Stories.

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The Schwab US Dividend Equity ETF (SCHD) has done well this year and is now sitting at its all-time high. It has jumped by 25% this year, beating the Nasdaq 100 and S&P 500 indices despite the fact that it has limited exposure to the artificial intelligence (AI) industry. 

It has become the second-biggest dividend ETF in the world after the Vanguard Dividend Appreciation ETF (VIG). While the SCHD is a good dividend fund, data shows that the iShares Core Dividend ETF (DIVB) is a better buy. 

What is the SCHD ETF?

The SCHD ETF is a top fund that tracks the Dow Jones US Dividend 100 Index, which is made up of 100 companies that have a long track record of growing their dividends in a long time. It has a tiny expense ratio of 0.06%, making it an extremely cheap fund to own.

The fund owns 100 companies across multiple sectors, with the biggest ones being the constituents being Abbott Laboratories, Amgen, and Merck. Its other top names are firms like Coca-Cola, Home Depot, UnitedHealth, and Chevron. 

Healthcare and consumer staples account for about 40% of the fund, with the other top sectors being in industries like energy, industrials, financials, and technology. It has little exposure in the booming AI industry, which explains why it is often seen as an anti-AI fund.

What is the DIVB ETF?

The DIVB ETF, on the other hand, is a fund that tracks the Morningstar US Dividend and Buyback Index. This fund is made up of over $300 companies that have a long record of paying dividends and buybacks. Buybacks help to boost stocks by increasing their earnings-per-share (EPS).

The information technology sector makes the largest portion of the fund with a 18.8% share. It is followed by industries like financials, industrials, healthcare, consumer staples, and energy. 

The biggest companies in the fund are firms like ADP, Accenture, IBM, JPMorgan, HP, Paychex, Cognizant, ExxonMobil, and Johnson & Johnson. It has an expense ratio of 0.05%, making it cheaper than SCHD. However, its 2.8% dividend yield is slightly lower than SCHD’s 3%.

DIVB is beating the SCHD ETF

Historical data shows that the DIVB ETF is a better fund than the SCHD in terms of total returns. A total return is one that includes the stock performance and the dividends it pays. 

DIVB’s price return in the last five years stood at 67.6%, double what the SCHD returned. The same trend has happened this year as the DIVB has risen by 28% compared to SCHD’s 25%.

When looking at the total return, DIVB has had a total return of 30% this year, higher than SCHD’s 27%. In the past five years, its total return was 90%, higher than SCHD’s 58%. Notably, the fund has beaten the S&P 500 Index, which has jumped by 87% in the same period. 

VOO vs SCHD vs DIVB ETFs performance | Source: SeekingAlpha

As such, while the long-term performance is not an indicator of what to expect, it is often safer to invest in a fund that has a long history of performing well.

The post SCHD ETF just hit a record high: Here’s why DIVB is a better buy appeared first on Invezz

The post SCHD ETF just hit a record high: Here’s why DIVB is a better buy appeared first on Seaside Success Stories.

(RTTNews) – The Singapore stock market on Friday snapped the two-day slide in which it had fallen almost 35 points or 0.6 percent. The Straits Times Index now sits just above the 5,740-point plateau although it may hand those gains right back on Monday.

The global forecast for the Asian markets is weak on profit taking and rising oil prices. The European markets were mixed and the U.S. bourses were down and the Asian markets figure to split the difference on Monday.

The STI finished modestly higher on Friday as gains from the financials and properties were offset by weakness among the retailers and trusts.

For the day, the index added 23.54 points or 0.41 percent to finish at the daily high of 5,743.59 after trading as low as 5,668.02.

The lead from Wall Street is soft as the major averages opened slightly higher on Friday but quickly tailed off and fell under water for the balance of the day.

The Dow sank 107.59 points or 0.20 percent to finish at 53,732.41, while the NASDAQ shed 73.84 points or 0.28 percent to end at 26,729.16 and the S&P 500 dipped 13.23 points or 0.17 percent to close at 7,785.23.

For the week, the Dow slid 0.6 percent, while the NASDAQ crept up 0.1 percent and the S&P 500 rose 0.4 percent.

The modest pullback on Wall Street reflected profit taking following the upward move seen in the two previous sessions, which lifted the S&P 500 to a record intraday high above 7,800. Also, the tech-heavy NASDAQ reached its highest closing level in over two months.

In economic news, the University of Michigan noted a significant deterioration in U.S. consumer sentiment in August. Also, the Commerce Department reported an unexpected decline in U.S. retail sales in July.

Crude oil prices surged on Friday as the U.S. and Iran continue to spar on their demands, leaving the Strait of Hormuz shut for shipping traffic. West Texas Intermediate crude for September delivery was up $1.05 or 1.29 percent at $82.30 per barrel.

Closer to home, Singapore will release July numbers for non-oil domestic exports later this morning; in June, NODX fell 8.9 percent on month but gained 20.7 percent on year, resulting in a trade surplus of SGD13.817 billion.

The post Singapore Stock Market May Head South Again On Monday appeared first on Seaside Success Stories.

The dollar index (DXY00) fell -0.27% on Friday as weak US retail sales and consumer sentiment reports reduced the odds of a September Fed rate hike to 32% from 35% on Thursday.  The dollar’s decline was curbed by the 10-year T-note yield rising +5 bp despite the weak US economic reports, driven by inflation concerns.

The dollar was also undercut by reduced safe-haven demand as President Trump appears to have given up on plans for any new major military attack on Iran for the time being, favoring economic pressure instead.  Treasury Secretary Bessent said on Friday that the administration will soon announce unprecedented economic measures against Iran that “have never been seen in the history of economic isolation of a country.” Yet, the military conflict continues as there were reports that Iran attacked two Abu Dhabi oil vessels in the Strait of Hormuz on Thursday night.

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Friday’s July US retail sales fell -0.6% m/m, much weaker than market expectations of +0.1%. Ex-autos and gas, July retail sales fell -0.2% m/m, weaker than market expectations of +0.3%.  July’s weak month-on-month retail sales report was partly due to technical factors, as June sales were temporarily bolstered by World Cup spending and by Amazon’s Prime Day being held in June rather than in July last year.  Yet, the weak retail sales report suggested that US consumers are pulling back due to high prices, increased gasoline costs, and a lack of confidence in their finances.

The University of Michigan’s preliminary August US consumer sentiment index fell by -4.2 points to 51.0, weaker than market expectations for only a small -0.2 point decline to 55.0 from July’s 55.2.

The markets are discounting a 32% probability of a +25 bp rate hike at the next FOMC meeting on September 15-16, down from 35% on Thursday and 51% as recently as Tuesday.

EUR/USD (^EURUSD) rose +0.34% on dollar weakness.  Also, the odds of an ECB rate hike in September of 92% far exceed the 32% odds of a Fed rate hike, supporting the euro’s interest rate differentials.

The markets are discounting a 92% chance of a +25 bp ECB rate hike at its next policy meeting on September 10.

USD/JPY (^USDJPY) fell -0.08% on dollar weakness.  The yen has underlying support from increased expectations of a BOJ rate hike after Bloomberg reported Thursday that Japanese Prime Minister Sanae Takaichi’s government supports a BOJ rate hike in either September or October.  The government favors a rate hike to support the yen and prevent inflationary pressures stemming from the weak yen.  The yen has ongoing support from the recent coordinated US-Japan intervention and fears that further intervention might be forthcoming if the yen remains weak.

The markets are discounting an 81% chance of a +25 bp BOJ rate hike at the September 18 policy meeting, up from 63% on Wednesday.  The yen continues to suffer from weak interest rate differentials, with the BOJ’s current policy rate of 1.00% well below the Fed’s federal funds rate target range of 3.50%-3.75%.

October COMEX gold (GCV26) on Friday closed up +16.40 (+0.37%), and September COMEX silver (SIU26) closed up +0.115 (+0.18%).

Precious metals prices on Friday found support from a weaker dollar and reduced expectations for a Fed rate hike.  There was also some safe-haven demand on reports that Iran attacked two ships in the Strait of Hormuz overnight.

Recent fund liquidation of precious metals is bearish for prices, as long holdings in gold ETFs fell to a 10.25-month low on July 27, after reaching a 3.5-year high on February 27.  Also, long holdings in silver ETFs fell to a 1-year low on July 14 from the 3.5-year high posted on December 23.

Strong central bank demand for gold is supportive of gold prices, following last Friday’s news that bullion held in China’s PBOC reserves rose by +640,000 ounces to 76.08 million troy ounces in July, the twenty-first consecutive month the PBOC boosted its gold reserves.

On the date of publication,

Rich Asplund

did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes.

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