STTG Market Recap April 30, 2014

Indexes opened down but rallied slowly all day, ending with a bit of a flourish after today’s Federal Reserve announcement – which frankly was not at all unexpected.   They continued to decrease quantitative easing by $10B a month.  There was a dour first quarter GDP report (first pass, it will get revised) premarket which pressured he market some but the thesis that this was due to weather has been widely accepted.  THe S&P 500 gained 0.30% and the NASDAQ 0.27%.

Gross domestic product expanded at a 0.1 percent annual rate, the slowest since the fourth quarter of 2012, the Commerce Department said.  The slowdown, which also reflected the slowest inventory accumulation in nearly a year, was much sharper than Wall Street had braced for. Economists expected a 1.2 percent growth pace.  Exports fell at a 7.6 percent rate, the largest quarterly decline in five years, after growing at a 9.5 percent pace in the final three months of 2013.  Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased at a 3.0 percent rate, reflecting a spurt in spending on services linked to demand for heating and the Affordable Healthcare Act, which expanded healthcare coverage to many Americans.

The Federal Reserve is on the weather caused the slowdown bandwagon per their statement today:  “growth in economic activity has picked up recently, after having slowed sharply during the winter in part because of adverse weather conditions.”

The indexes remain the same; the S&P 500 is holding in very well and trying to build a range while the NASDAQ is struggling to create a new higher high.  Here are longer term charts:

spx

nasdaq

After hours Yelp (YELP) reported; this stock has been decimated the past few months, losing nearly 50%.  The report was solid and the stock is up 5% in after hours.   Like many young companies, the revenue growth was strong but losses continue.

Yelp reported a first-quarter loss of $2.6 million, or 4 cents a share, on sales of $76.4 million. During the same period a year ago, the online review and recommendation company lost $4.8 million, or 8 cents a share, on revenue of $46.1 million. Analysts surveyed by FactSet had forecast Yelp to lose 6 cents a share on $75 million in sales.

yelp

Weibo (WB) which is the Chinese Twitter, and just came IPO in the past few weeks had its first nice session as a public company.  Obviously it is too young to use much technical analysis on.

WB

Under Armour (UA) is yet another example of a growth stock that has been punished the past 6 weeks; today it was upgraded so spiked, but these charts are ugly.

ua

We highlighted Altria (MO) a few weeks ago, and here is Lorillard (LO) as well – these are both cigarette stocks; exactly the type of safety stocks that continue to see inflows.

mo lo

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