Posts Tagged Dow Jones Industrial Average
Bounce Or New Beginning?
Posted by Tetyana Matychak in Fund Markets on August 31st, 2010
Although it was one of the last summer Friday’s, trading was surprisingly volatile. Despite the fact that most traders were likely working on their short game or vacationing with the family, there was a serious dose of data input to the game on Friday ranging from economic results, corporate guidance, and of course, some very important Fedspeak. The end result was an impressive move up in the indices, which may or may not represent a new beginning for the bull camp.
While the bears could be heard making remarks about short-covering and discussing the height to which a dead cat could actually bounce, the bulls talked about a second successful test of 1040 and a move “into the gap” that was created by Tuesday’s opening dive lower. And while no one knows for sure how much farther the bulls can run, it does appear that our heroes in horns were able to wrestle the ball away from their opponents on Friday.
There were three key inputs to the session. First, we had the first revision to the second quarter GDP in the U.S. While down significantly from the initial estimate made earlier in the month (remember, the government’s first estimate didn’t even include all the data from the final month of the quarter), the growth rate of 1.6% was actually better than the consensus for a rate of 1.3% and the whisper numbers containing a zero-handle. The takeaway from the report was that although the growth has indeed slowed, the economy does continue to grow. And in short, this is what “slowdowns” look and feel like.
The next bit of data was less upbeat as Intel (INTC) revised its revenue guidance for the third quarter – and not in a good way. Although analysts following the chipmaker suggested that the move wasn’t exactly a surprise, the computers that look for key words were able to put “Intel” and “reduced guidance” together in order to create a swift downdraft. It is also interesting to note that the Intel news was released within a couple minutes of the University of Michigan’s Confidence index, which, while not a bad report by any stretch, also came in “below consensus.” As such, the computers clearly got busy for a period of about 10 minutes Friday morning. Read the rest of this entry »
U.S. stock futures rise ahead of Bernanke testimony
Posted by Tetyana Matychak in Fund Markets on July 21st, 2010
U.S. stock futures rose on Wednesday, buoyed by Apple’s stronger-than-expected results, as investors braced for testimony by Federal Reserve Chairman Ben Bernanke and another barrage of earnings reports.
Nasdaq 100 futures gained 11.75 points to 1,851.50 and S&P 500 futures added 4.40 points to 1,084.50. Futures on the Dow Jones Industrial Average rose 31 points to 10,210. The Dow (DJIA 10,230, +75.53, +0.74%) ended up 0.7% on Tuesday, reversing intraday triple-digit
losses.
Sentiment was buoyed after Apple (AAPL 251.89, +6.31, +2.57%) reported last night a surge in earnings due to booming demand for its iPhone and iPad devices.
Strategists at Deutsche Bank said the spotlight Wednesday will be on Bernanke’s monetary policy report to the U.S. Senate Banking Committee.
“Expectations that Bernanke may announce policy accommodation measures seemed to help risk assets recover from the softer housing-starts data and Goldman Sachs’ earnings and revenue miss,” they wrote in a note. Markets will “likely listen carefully to decipher any hints about the possibility of a U.S. double-dip [recession].”
Bernanke will start speaking at 2 p.m. Eastern time, but before that investors will get a number of earnings reports from companies, including Morgan Stanley (MS 25.22, +0.44, +1.78%) , Wells Fargo & Co. (WFC 25.91, -0.11, -0.42%) and Freeport McMoRan Copper & Gold Inc. (FCX 64.32, +3.46, +5.69%) . Read the rest of this entry »
Stock futures fall after euro hits new 4-year low
Posted by Tetyana Matychak in Fund Markets on June 1st, 2010
Stock futures tumbled Tuesday after the euro fell to a new four-year low. Major U.S. indexes are set to resume their slide due to fresh concerns about the health of Europe’s economic recovery. Stocks fell late Friday ahead of the long holiday weekend after Fitch Ratings cut its view on Spain’s debt.
A slowdown in manufacturing in China also worried investors. U.S. traders will get a reading on the domestic manufacturing sector after the market opens.
The Dow Jones industrial average fell 122 points Friday. Dow futures are down another 120 points early Monday.
The euro fell as low as $1.2112 before easing off that low to $1.2155. Markets worldwide have been tracking the euro, the currency used by 16 countries in Europe. The euro has been seen as an indication for confidence in whether countries like Greece, Spain and Portugal will be able to cut spending to contain mounting debt without stalling a recovery.
Investors in recent weeks have used any signs of weakening around the world to sell stocks and move into safe-haven investments like the dollar and U.S. Treasurys. Read the rest of this entry »
Stocks pull back on Europe’s deepening debt woes
Posted by Tetyana Matychak in Fund Markets on April 28th, 2010
U.S. stocks followed European markets sharply lower Tuesday after Standard & Poor’s downgraded the debt of Portugal and Greece. The rating agency’s move intensified investors’ fears that Europe’s debt problems are spreading.
The Dow Jones industrial average fell nearly 130 points. All the major market indexes were down more than 1 percent.
The ratings downgrades sent the dollar up more than 1.1 percent against the euro, hitting its highest level in about a year. At the same time, gold and U.S. Treasury bond prices also rose as investors sought perceived safe-haven investments. The three often do not trade in the same direction.
“It was a knee-jerk reaction,” said Brian Peardon, a wealth adviser at Harrison Financial Group in Citrus Heights, Calif. Peardon said the small size of Greece and Portugal’s economies mean their debt struggles are not yet a major problem. But if they were to default on their debt, other countries that hold their bonds would also suffer.
Debt-strapped countries might also find it harder to spend more to stimulate their economies and help feed the global economic recovery. Read the rest of this entry »
Stock investors ask: What’s the next big thing?
Posted by Tetyana Matychak in Fund Markets on March 11th, 2010
A year after the stock market began its comeback from 12-year lows, investors are looking for the next big thing.
Stocks have lost some of the momentum that propelled the Dow Jones industrial average up 61.4 percent from its close of 6,547 on March 9, 2009. That’s natural – bull markets tend to slow down as they head into their second year. But the lethargic pace of the economic recovery has also been a bit of a drag on stocks. And so investors are waiting for signs that the economy is ready to put up some solid, sustainable growth numbers.
The most likely trigger: job growth. Investors need to see a Labor Department report that says employers are creating more jobs than they’re cutting.
Until then, investors are going to stay cautious. Analysts say the market is likely to move sideways or drift higher, as it’s been doing over the past few weeks. Tuesday’s trading fit the pattern of modest moves. The Dow rose nearly 12 points. The average is up 1.3 percent so far this year.
But that doesn’t mean the market isn’t going to have its fitful moments. And it certainly has volatile industries that are expected to move the rest of the market. On Tuesday, the financial companies that led stocks higher in the past year again drove trading. Analysts said financial shares rallied as investors reacted to rumors that the government might prohibit the trades known as short sales in stocks of companies it owns. The government has large stakes in Citigroup Inc., American International Group Inc. and mortgage companies Fannie Mae and Freddie Mac after bailing them out during the 2008 financial crisis. Read the rest of this entry »
Stronger dollar, weak economic data pummels stocks
Posted by Tetyana Matychak in Fund Markets on November 26th, 2009
A stronger dollar and more discouraging signs of a subdued economic recovery triggered a broad sell-off in stocks.
Major indexes tumbled more than 1 percent Thursday, including the Dow Jones industrials, which fell about 133 points.
Energy and material stocks showed the biggest losses as a jump in the dollar sent commodity prices tumbling. Meanwhile, an analyst’s downgrade of the chip sector pulled technology shares sharply lower.
Analysts said the dollar was the biggest force behind Thursday’s trading, as it has been in recent months. A stronger dollar makes commodities more expensive to foreign buyers, and companies that produce the commodities make less money from them.
“There might be a little fear out there about dollar strengthening, as well as some natural profit-taking opportunities,”said Dan Cook, senior market analyst at IG Markets Inc. in Chicago.”We’ve been on an amazing run.” Read the rest of this entry »
UK Stocks — Factors to watch
Posted by Tetyana Matychak in Favourites, Fund Markets on October 16th, 2009
Britain’s FTSE 100 .FTSE index is seen opening up as much as 0.4 percent, according to financial bookmakers, drawing strength from Wall Street where the Dow Jones industrial average .DJI passed the 10,000 level for the first time in a year on earnings optimism.
The FTSE 100 closed 2 percent higher at 5,256.10 on Wednesday, hitting its
highest closing level in more than a year after upbeat quarterly earnings from JPMorgan Chase (JPM.N) gave a further boost to market sentiment in the wake of Intel’s (INTC.O) forecast-beating results.
Shares in Asia .MIAPJ0000PUS rose to their highest since August last year,
while Japanese stocks jumped 2 percent as investors bought exporters who might benefit from rising U.S. demand.
Later on Thursday results are due from Goldman Sachs (GS.N) and Citigroup
(C.N). No British economic data is expected on Thursday, leaving the focus on U.S. CPI figures for September, due at 1230 GMT.
* Nikkei up 1.5 pct after JPMorgan, U.S. retail data [ID:nT328702]
* Dow passes 10,000 mark on earnings optimism [ID:nN14267035]
* Aussie rise sparks broad dollar fall to 14-mth lows [ID:nT77862]
* Bonds sag, Wall Street rally parares safety bid [ID:nN14260466]
* Asia shares hit 14-mth peak, dollar slumps [ID:nSP409405]
* Copper rises on weak dollar, optimism on recovery [ID:nSHA76130]
* Gold steady above $1,060 on dollar, oil [ID:nT83451]
* Oil rises towards $76 on U.S. inventories, economy [ID:nSIN546046] Read the rest of this entry »
Futures Fall Ahead of Data Deluge
Posted by Tetyana Matychak in Fund Markets on October 1st, 2009
U.S. stocks futures are indicating a lower open Thursday as investors paused for breath ahead of a flood of economic data.
Less than two hours before the start of trading, Dow Jones Industrial Average futures were 46 points lower at 9607. The S&P 500 futures slipped 5.4 to 1047.5, and Nasdaq 100 futures lost 8.75 to 1708.75. Changes in futures do not always accurately predict early market moves after the opening bell.
U.S. stocks weakened Wednesday on the final day of the third quarter, with the Dow Jones Industrial Average retreating 30 points, the Nasdaq Composite losing 2 points and the S&P 500 slipping 4 points. Weak economic data on jobs and a Chicago-area poll contributed to the bearish tone.
However, the stock market ended near its highs for the year, with many of the riskiest stocks leading the charge.
As the curtain goes up on the fourth quarter Thursday, investors are bracing for a deluge of economic releases. The Labor Department has its weekly jobless claims report and the National Association of Realtors has pending home sales figures. Personal income and the related PCE deflation inflation gauge for August, the Institute for Supply Management’s manufacturing gauge for September, construction spending for August and car sales data for September are also expected. Read the rest of this entry »
US Stocks Slide As US-China Trade Relations Hit A Rough Patch
Posted by Tetyana Matychak in Fund Markets on September 14th, 2009
U.S. stocks fell as trade relations between the U.S. and China turned rockier, with the energy and financial sectors under pressure.
Shortly after the opening bell, the Dow Jones Industrial Average was lower by about 62 points. The S&P 500 was down about 0.6%. The Nasdaq Composite Index slipped 0.4%.
Escalating trade tensions between the U.S. and China rattled overseas markets. The U.S. over the weekend imposed tariffs on Chinese-made tires, while China said it planned an antidumping investigation into U.S. sales of chicken and auto products.
In Asia, most markets lost ground. The Nikkei tumbled 2.3% on concerns that the strengthened yen could put a dent in exporters’ earnings. Hong Kong’s Hang Seng ended 1.1% lower at 20932.20, while Australia’s S&P/ASX 200 fell 1.4% and South Korea’s Kospi dropped 1%. Major benchmarks in Europe also fell. Read the rest of this entry »
Jobless claims show labor market may slow recovery
Posted by Tetyana Matychak in Budget on September 7th, 2009
New claims for jobless aid fell less than expected last week, and the number of people continuing to receive unemployment benefits rose – further signs that any economic recovery will be hindered by a weak job market and flat incomes.
Most economists think the recession is over, but they say the jobless rate will keep rising until at least next summer as the economy struggles to mount a sustained recovery. That means household incomes will remain depressed and consumer spending, which accounts for 70 percent of the economy, will continue to lag.
“Firms are still not hiring, and that reflects deep pessimism about the sustainability of the economic recovery once government stimulus programs wear off,”said Sal Guatieri, senior economist at BMO Capital Markets.”The lack of job creation remains a big headwind for cash-starved and credit-constrained consumers.”
The nation’s major retailers on Thursday reported lackluster results from August back-to-school sales. Results in established stores fell 2.1 percent in August compared with the same month last year, a compilation of 31 retailers’ results by the International Council of Shopping Centers and Goldman Sachs indicated. Some major discounters managed to exceed expectations. Read the rest of this entry »
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Consumer Spending in U.S. Rises More Than Forecast
30 August 2010
Monetary Policy Gets No Respect
19 July 2010
Stocks May Surprise By Year-End
5 July 2010
Is A Global Reserve Currency A Necessity?
28 June 2010
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