Is a Recession Coming?

The yield curve identifies yields across varying maturities of debt instruments. The typical shape is upward sloping, with longer term rates generally being higher than shorter term rates. When the yield curve inverts, economists often point to an impending recession. The reason is that lower long term rates indicate expectations of lower interest rates in the future, either from lower inflation or a more loose monetary policy, both of which generally accompany slower growth. See article here, MarketWatch.  See historical article here, NY Times.

Goodbye GE

Until recently, General Electric (GE) was the only stock in the Dow Jones Industrial Index that was one of the original companies included when the index was created in 1896. However, following business problems and a massive loss in value over the past two years, GE will be replaced by Walgreens on June 26. Recall, the Dow is price weighted, so GE's currently low price of $13 means it has little impact on the index anyway. See article here, CNN Money.