Holiday weeks tend to usually have a modest positive bias on light volume and today was a perfect example of holiday trading. The S&P 500 lifted 0.29% and the NASDAQ 0.89%. Aside from the holidays there was still some carryover from the words and actions of central bankers overseas last week. The S&P 500 trades at 17.2 times its projected earnings, up from a multiple of 15.5 last month and the highest since the end of 2009.Continue reading
Friday was a choppy session with little momentum as indexes have now worked off their extreme overbought conditions. The S&P 500 added 0.02% and the NASDAQ 0.18%. U.S. retail sales rose 0.5% last month when stripping out volatile elements like gasoline, autos, building materials and food services, according to the Commerce Department data released on Friday. That was the biggest increase since August and just above analyst expectations of a 0.4% gain. Retail sales account for about one-third of consumer spending, and overall they rose 0.3%, held back by a 1.5% drop in receipts at gasoline retailers.Continue reading
It sounds repetitive but Wednesday was yet another day with some morning pressure which led to dip buyers showing up later in the session; this is what you want to see in a bull market. The S&P 500 fell 0.07% while the NASDAQ gained 0.31%. There has been very little news in the U.S. this week but European indexes were weak today which led to the morning selling in the U.S. Bank of England Governor Mark Carney unveiled lower U.K. growth and inflation forecasts as officials adjusted to account for “moribund” global expansion and stagnation in Europe.Continue reading
U.S. indexes took a breather Monday after a big 2 week run. The S&P 500 fell 0.01% and the NASDAQ gained 0.18%. This is very good behavior for an overbought market – you prefer to see sideways consolidation rather than any serious dip. The Institute for Supply Management’s gauge of manufacturing rose to 59 in October, matching August as the best reading since March 2011. Readings above 50 indicate expansion. Construction spending fell 0.4 percent in September.Continue reading
It was a generally quiet day for the markets, especially considering it was a Fed day which usually leads to a lot of volatility. Big picture, we’ve regained almost all of recent losses in the major indexes but stand short term overbought. A bit of rest would be healthy. The S&P 500 fell 0.14% and the NASDAQ 0.33%. The Fed statement was not as dovish as most expected as the word “significant” was removed in front of the view of slack in the labor market – yes every single word in a Fed statement is analyzed.Continue reading
ndexes gapped up at the open and stayed strong all day as corporate earnings reports generally pleased investors; some more Ebola news late in the day took indexes a bit off their highs. The S&P 500 jumped 1.23% and the NASDAQ 1.60%. There was decent economic news out of Europe which also helped the mood.Continue reading
Monday’s action in the indexes is more typical of how a bull market rally behaves; early selling is met with a rush of buyers. After a quick open to the downside buyers jerked the indexes up immediately and a steady stream of buying came in all day. The S&P 500 gained 0.91% and the NASDAQ 1.35%. A dearth of news was probably a good thing today. After the bell all eyes were on Apple which had a nice report.Continue reading
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The market had one of its worst session of the year a day after having the best one in a year. Yesterday we wrote this:
If momentum can continue a mid day sharp reversal as we had today could be a turning point. The next few sessions will be important to watch.
Well it didn’t take a few sessions, we saw our answer in one session. And it was not good news. The S&P 500 sunk 2.07% and the NASDAQ 2.02%. Bad news from Europe continued to pile up: data showed a 5.8% drop in German exports in August, adding to downbeat numbers that had German industrial orders and output falling as well. Stocks furthered their losses after European Central Bank President Mario Draghi said there are indications that the euro zone’s economic growth is slowing and that central bankers should strive to boost inflation.Continue reading