Stocks opened down as one of the hawkish members of the Federal Reserve made a boilerplate comment about raising interest rates earlier than the market expected, but dip buyers rushed in yet again and by the end of the day the market was nearly unchanged. The S&P 00 fell 0.12% and the NASDAQ 0.02%. James Bullard, a non-voting member of the Federal Open Market Committee, told Fox Business Network the Fed’s first interest rate hike could come at the end of the first quarter of 2015, reiterating what he had told reporters following a May 16 speech. Also of note was the IPO of GrPro – we have more on that below.
We’ll look at some individual stocks today using Marketsmith:
British bank Barclays (BCS) took a dive today as it was accused of giving an unfair advantage to high speed traders by the New York attorney general.
The New York State attorney general’s lawsuit alleges that Barclays promised to get the best possible prices for customers looking to buy or sell shares but instead took steps that maximized the bank’s profits and executed nearly all of its customers’ stock orders on its “dark pool” exchange instead of on exchanges or other venues that might have offered better prices.
We’ve mentioned the past week a nice move into Chinese internet stocks and Youku (YOKU) [the "Youtube of China"] was a name we highlighted recently – it had a nice surge today. This is a very volatile name but when it moves, it really moves.
Solar was an area we highlighted a month ago as one to watch to see if money was moving back into momentum stocks – here is the chart for American solar company First Solar (FSLR). It looks like it is forming the “cup” part of a potential “cup and handle” formation so if that plays out, after the next downturn it could be an ideal candidate to jump into if that bullish formation plays out.
Speaking of momentum, stocks Twitter (TWTR) is late to the game in terms of joining the party but maybe today was step 1 of getting out of its rut. It crossed back over its 50 day moving average about 2 weeks ago and burst over the $40 level that has been a ceiling the past week.
Outside of those name’s a hot IPO on the day was GoPro (GPRO) – which makes wearable cameras, usually for sports events. Since there is not really a similar type of company that is public this might be a name that momentum traders really latch on to so if that is your alley it is one to watch.
GoPro Inc. (GPRO), whose cameras let surfers, skiers and sky divers record their exploits, gave investors an adrenaline rush of their own as it jumped in its debut following an initial public offering. GoPro gained 31 percent to $31.34, after the company and its shareholders raised $427 million by selling the shares for $24 each — the high end of a marketed range. With almost 3 years of footage uploaded last year by customers, GoPro is tapping a younger, selfie-driven generation and plans eventually to make money from that content.