Mar 26 2015

Futures are negative following yesterday’s broad market selloff

3/25/15 Market Recap:

The equity markets fell again in yesterday’s trading, its third consecutive day of declines, with losses accelerating towards the close of the session. According to traders, there was no one particular event that drove selling pressure but a mix of factors including negative economic data, namely durable goods orders, along with investors taking profits as we near the end of the quarter. Durable goods orders fell by 1.4% in February, significantly more than expected, and fuelled questions regarding the economy’s growth. All four of the major averages declined yesterday, with the Nasdaq and Russell 2000 falling by greater than 2%. Similarly, nine of the ten S&P sectors pulled back with a majority of them falling by more than 1%. Energy was the lone exception, gaining 1.22% on the session thanks to rising oil prices.


Looking Ahead:

Futures are negative this morning following yesterday’s broad market selloff. Economic data for the day is light with weekly jobless claims being released at 8:30. Oil prices are rising in overnight trading after reports of airstrikes in Yemen by Saudi Arabian forces. Additionally, treasuries are falling slightly while the euro continues its positive momentum against the dollar.

Don’t miss Money Matters with Gary Goldberg this Sunday at 11:00 AM on WOR 710 AM Radio when Gary interviews Don DiMicco, former CEO of Nucor and author of “American Made.” Visit our website www.ggfs.com for details.

 

 

Mar 25 2015

Market digests the news of a blockbuster merger deal

3/24/15 Market Recap:

Stocks fell in yesterday’s trading as good economic news, particularly in new home sales, became bad news for the market. In what has been a regular occurrence in recent trading, any positive indication coming from the US economy has led to speculation that the Fed may be more willing to raise rates in the near term. In yesterday’s case, that better than expected economic news came from new home sales which increased by 7.8% month over month and reached its highest levels in seven years. The market has also been inversely correlated with the Dollar, which rebounded yesterday against its major counterparts. All of the major averages were down with the S&P losing the most in the session. Among the 10 S&P sectors, declines were similarly broad-based with Utilities falling by more than 1%.


Looking Ahead:

Futures are flat this morning as the market digests the news of a blockbuster merger deal that would combine HJ Heinz and Kraft Foods. The combined company, which will be called The Kraft Heinz Company, will be the third largest food and beverage company in the US and the fifth largest in the world. Economic data for the day is light with durable orders coming at 8:30 am. In overnight trading, the Euro is once again gaining ground on the Dollar while Treasury yields continue to fall further below 1.9%.

Don’t miss Money Matters with Gary Goldberg on Sunday at 11 AM on WOR 710 AM Radio for a more detailed discussion of the current economic, market environment and what investors should focus on now. Visit www.ggfs.com for details.

Mar 24 2015

CPI data expected to see its first monthly increase

3/23/15 Market Recap: 

Despite all four major averages hovering around positive levels for most of the day on positive existing home sales data and a weakening dollar, the broad markets closed mixed due to some late day selling and profit taking. The Dow and S&P were able to hang on to slight gains while the Russell 2000 and Nasdaq both decreased, with the latter falling by .31%. Among the S&P sectors, gains outnumbered losses with Consumer Staples, Telecom, and Utilities leading the way. On the other end, Industrials, Financials, and Healthcare lagged. Treasuries increased once again with 10 year yields falling to 1.91%, its lowest point in the last six weeks while the dollar extended its recent selloff against its major counterparts.


Looking Ahead: 

Futures are higher this morning, ahead of a busy economic release day. Consumer price index data, which will come first at 8:30, is expected to see its first monthly increase since October. This will arguably be the most scrutinized data point of the day with the Fed making it clear that inflation, which is currently well below their 2% target, is something that they are monitoring closely. Aside from CPI, investors should also look out for manufacturing PMI and new home sales data coming later in the morning. In overnight trading, the Dollar is slightly lower against the Euro while Treasuries are slightly higher.

 

Don’t miss Money Matters with Gary Goldberg on Sunday at 11 AM on WOR 710 AM Radio for a more detailed discussion of the current economic, market environment and what investors should focus on now. Visit www.ggfs.com for details.

 

Mar 23 2015

This Week’s Market Moving Events

3/20/15 Market Recap:

Stocks rose higher on Friday, closing out a positive, yet volatile week for the markets. Friday’s trading was buoyed by better than expected earnings reports from the likes of Nike and Darden Restaurants along with a surge in oil prices that drove energy stocks higher. Energy stocks led all S&P sectors, rising 1.37% during the session. The day’s advances capped off a great week for the markets with the four major indices all increasing by more than 2% for the trading week. The Nasdaq led the way with gains of 3.18% and is inching closer towards the index’s record highs, levels not seen since the first quarter of 2000. The market rally, due primarily to dovish statements from the Fed on the expected interest rate hike, also extended to Treasuries with the yield dropping below 2% to close at 1.93% on Friday. The dollar fell on the news however and took back some of the recent advances it had made against the Yen and Euro.


Looking Ahead:

Futures are lower this morning as the market looks to extend last week’s positive momentum. With much of last week’s trading predicated on statements from Fed Chair Yellen and the market’s reactions to those statements, focus now turns back to economic data and the upcoming earnings season. In her statements, Fed Chair Yellen made it clear that the Fed will be monitoring the economic landscape, namely inflation and unemployment, very closely to guide in the rate hike decision. Additionally, earnings season, which is fast approaching, will be crucial in understanding the extent that the strong dollar has affected US multinationals overseas. Treasuries and the dollar are slightly higher in overnight trading while oil prices are declining.


This Week’s Market Moving Events:

  • Monday: Existing Home Sales, Chicago Fed National Activity Index
  • Tuesday: Consumer Price Index, US Manufacturing PMI, New Home Sales
  • Wednesday: Durable Goods Orders
  • Thursday: Jobless Claims
  • Friday: GDP (Fourth Quarter 2014, 3rd Estimate), Univ. Michigan Consumer Sentiment Index

Don’t miss Money Matters with Gary Goldberg on Sunday at 11 AM on WOR 710 AM Radio for a more detailed discussion of the current economic, market environment and what investors should focus on now. Visit www.ggfs.com for details.

Mar 20 2015

Equity markets were mixed in trading yesterday

3/19/15 Market Recap:

Equity markets were mixed in trading yesterday, a much quieter session than Wednesday’s FOMC sparked rally. The Dow and S&P declined for the day while the Russell 2000 and the Nasdaq saw slight gains. The dollar meanwhile rebounded against its major counterparts and contributed to underperformance in both energy and materials, laggards among the S&P sectors.

Watch our discussion on Fox Business from Thursday afternoon here: 

031915 FBN

(Click to watch)

Energy stocks were also dragged down by falling oil prices, negatively affected by record high inventories in the US. Healthcare was the only sector to close with gains for the day, rising .5%, thanks to the leadership of biotech companies.


Looking Ahead:

Futures are higher on this first day of Spring as the markets attempt to close this week on a positive note. Economic data is light for the day with a speech by Chicago Fed President Charles Evans being the lone highlight. The dollar is holding steady in overnight trading while oil prices are slipping once again. Treasuries are slightly higher with yields currently sitting at 1.95%.

Don’t miss Money Matters with Gary Goldberg on Sunday at 11 AM on WOR 710 AM Radio for a more detailed discussion of the current economic, market environment and what investors should focus on now. visit www.ggfs.com for details.

 

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