Stocks fell again Friday, marking the 6th loss in 7 sessions, following a streak of 11 gains in 12 sessions earlier in the month. The S&P 500 dropped 0.41% and the NASDAQ 0.15%. The current issue is the stalemate in Washington D.C. so we'll see how much longer this posturing continues before the politicians do what they normally do - kick the can down the road. There was some Fed speak as well today the normal characters were trotted out to not say anything that insightful:
Fed speak as Chicago Fed president Charles Evans said the central bank could start reducing its asset purchases this year based on economic forecasts but the decision to wind back stimulus may be delayed to next year. On the other hand, New York Fed President William Dudley reiterated his stance for the central bank's bond buying program, saying the labor market is not yet healthy and inflation should firm in the months ahead.
We continue to see a divergence between the NASDAQ and the S&P 500; the former acts well, holding the 10 day moving average this entire week and a half, while the latter is acting weaker. One would think one of these two is going to revert to form and act more like the other soon - the question is which one?
The volatility index spiked today on this uncertainty over the budget resolution.
One key sector to confirm strength or weakness in the economy is the transports - they look a lot like the S&P 500 here.
Nike (NKE) spiked higher after company posted quarterly results that exceeded Wall Street expectations, helped by strong sales in gains in North America and Europe. In addition, at least seven brokerages upped their price targets on the sports apparel retailer.
Microsoft (MSFT) ran some today as there were some rumors a new CEO would be named next week. Some have tagged Ford's CEO after his turnaround of that automaker.
Biotechs continue to be the star of 2013 - large cap company Celgene (CELG) had yet another breakout today.
On the negative side, JCPenney (JCP) is in utter freefall - one reason to stay away from these broken charts.