After last Friday’s selloff on the China news, this week has been generally quite positive as the earnings parade has been unleashed. Today was another such day as a slight negative open was bought and the S&P 500 finished up 0.24% and the NASDAQ 0.41%. New home sales for March came in weaker than expected, at 481,000 in March, versus the 510,000 unit estimate. Overseas, China’s flash purchasing managers index from HSBC Holdings dropped to 49.2 for April, the lowest since April last year, underscoring a slowdown that prompted China’s central bank to cut banks’ reserve requirements by the most since 2008. Any reading below 50 signifies contraction.Continue reading
Inflation data caused a bit of a selloff Tuesday as the S&P 500 fell 0.61% and the NASDAQ 0.32%. Inflation has been very benign in the U.S. during this Fed easing cycle and appears to be the only thing aside from a booming economy that will move the Fed to tighten. While today’s numbers were really quite benign, some pointed to the core CPI figure as a thing to worry about – but reality is it will take months on end of unexpected inflation to really force the Fed’s hand.
U.S. Consumer Price Index rose 0.2% in February, in line with analysts’ expectations, the Labor Department said. The gain came after dropping 0.7% the previous month. The so-called core CPI, which strips out food and energy costs, increased 0.2% in February after a similar gain in January. In the 12 months through February, the core CPI rose 1.7%, the largest increase since November.
In other economic news, February new home sales rose 7.8% to 539,000, the highest level in seven years.Continue reading
The train keeps on rolling as we’ve exited the best month in a few years and entered March with a bang. The S&P 500 gained 0.61% and the NASDAQ 0.90% to kick off the new month. NASDAQ 5000 has become a rallying cry for much of the financial media and today that level was hit. This was the first time it has crossed this level since March 2000 i.e. the month that the great crash began. By October 2002, the NASDAQ had fallen all the way back to the 1100 level! Relatively modest economic news had no effect on animal spirits:
ISM Manufacturing for February was 52.9, its slowest pace in 13 months; any reading over 50 signals expansion. Construction spending fell 1.1 percent in January. Personal income increased of 0.3 percent, while personal spending fell 0.2 percent in January.
People were more interested in news out of China – remember all central bank easing is a “good thing” to investors in this era.
The People’s Bank of China (PBOC) cut benchmark interest rates by 25 basis points to 5.35 percent on Saturday—the second cut in three months—as deteriorating economic conditions forced the central bank to shorten the time gap between policy moves.Continue reading
Thursday was much the opposite of Wednesday; yesterday the market was up thru mid afternoon then suffered significant selling late. Today indexes were down thru mid afternoon and then buyers showed up. It’s a very volatile market right now and not one that is very simple to deal with. The S&P 500 gained 0.95% and the NASDAQ 0.98%. Some dovish comments Janet Yellen made to lawmakers and oil not dropping yet again helped the mood some today.Continue reading
Friday was a generally quiet session until the closing 90 minutes when sellers came in; the S&P 500 fell 0.55% while the NASDAQ gained 0.16%. A pretty significant warning by shipper UPS might be something to watch for an economic perspective – this is a company that moves a lot of goods around the country. Maybe it was just specific to the Christmas season but if there is another warning down the road it could be something bigger. In economic news, the National Association of Realtors said on Friday existing home sales increased 2.4% to an annual rate of 5.04 million units last month. Economists had forecast sales rising to a 5.06-million-unit pace. For all of 2014, existing home sales fell 3.1% to 4.93 million. That was the first annual drop since 2010.Continue reading
Despite more or less doing what was rumored yesterday, the actions by the European Central Bank this morning set indexes on fire. This has been a consistent pattern for years now. One day it will not have the same effect but until that day comes traders will react in knee jerk reaction. The S&P 500 gained 1.53% and the NASDAQ 1.78%. There had been a long standing rejection of quantitative easing by the Germans but they have finally been overruled by today’s actions.Continue reading
We had some technical difficulties tonight so no market recap video today but I posted an idea session last night where we looked at some recent winners to see which names might be good ideas go forward, on my Ticker.tv channel, Mark333.
Indexes opened down as oil weighed, and stayed week all day in a quite miserable session. Investors have become conditioned to V shaped rallied lasting weeks and weeks but after the 180 degree turn mid December, we’ve had normal quiet holiday trading at first but now some significant selling to begin 2014. Action in oil and Treasuries makes it look like the global economy is seriously cooling. The S&P 500 fell 1.83% and the NASDAQ 1.57%. Aside from oil there was also the normal turmoil out of Europe as some whisper Greece wants to leave the Euro.Continue reading
Tuesday was one of the most interesting days in a long while. We entered the day severely oversold on some secondary measures so for short term traders there was an opportunity for a trade IF the market opened down. That happened as some massive interest rate hikes in Russia overnight caused consternation. The trade to buy the weak market was there but you truly had to be quick today. We’ll talk more in detail on the intraday action in a moment but for the day the S&P 500 ended down 0.85% and the NASDAQ 1.24%. Tomorrow the Fed will release their meeting statement, with the central bank gathering to consider the timing and size of interest-rate hikes and whether to reiterate its vow to maintain rates low for a considerable period.Continue reading