GGFS Commentary

3/3/15 Market Recap:

With relatively little headline news or major earnings to substantially drive the markets in either direction, the markets yesterday pulled back as investors took some profits and the major averages hovered at or around record highs. The S&P and Dow both fell just a hair under half a percent while the Russell lagged the four major averages, dropping by .63%. The Nasdaq, which a day earlier closed above the psychologically key 5,000 mark, pulled back by .56% to close 21 points below that 5k mark. Treasury bond prices also declined, falling for the second straight day, as prices were pressured by new corporate issues from companies like Actavis and Exxon Mobil. The Ten year yield currently stands at 2.12%. 

Looking Ahead:

Equity futures are in the red slightly as investors await a few key pieces of economic data. The ADP jobs report in particular, which shows the number of private sector jobs added to the economy, will be important for investors as it serves as an appetizer to the jobs report that will come on Friday. Tracking the employment situation is key because it can give clues as to the timing and scope of an interest rate hike by the Fed. Other important news investors should look out for today include non-manufacturing PMI and petroleum inventory data.

Make sure to tune into Money Matters this Sunday at 11:00 AM on WOR 710 AM Radio to hear our latest economic and market update. Visit our website www.ggfs.com for details.

3/2/15 Market Recap:

Markets began March with a bang with all major stock averages ending the day positive. The Nasdaq, in particular, led with gains of .90% for the day and closed above the 5,000 mark for the first time since March of 2000. The Nasdaq’s performance was boosted by deals in the space including the acquisition of Freescale Semiconductors by NXP Semiconductors. The tech heavy index has also increased the most year-to-date, rising 5.74%. Yesterday also brought positive economic news with both consumer spending and income increasing by .3%. The positive news provided a boost for consumer discretionary stocks which led all sectors with a gain of 1.20%. Also leading for the day was the aforementioned tech sector which ended with gains of .97%. On the other end, oversupply concerns of crude oil and rising fixed income yields dragged down energy and utilities which fell by .69% and 1.95% respectively.

Looking Ahead:

The markets are pointing a lower open this morning as investors wait and see if stocks can maintain recent momentum. The markets will be waiting for earnings releases from Kate Spade (KATE), Autozone (AZO), and Best Buy (BBY) later today with no major economic data to drive the markets.

Make sure to tune into Money Matters this Sunday at 11:00 AM on WOR 710 AM Radio to hear our latest economic and market update. Visit our website www.ggfs.com for details.

Wednesdays Market Recap:

Stocks closed the day mixed yesterday with the Dow and Russell 2000 gaining while the S&P and Nasdaq pulled back. Investors again listened to testimony for clues regarding the timing and scope of a rate rise but her comments yesterday offered no surprises. Sectors performance was similarly contrasted with half of the ten sectors closing positive and the other half closing negative. Consumer Discretionary stocks led the way, gaining .79% on the back of positive earnings reports from companies like Target (TGT) and Lowes (LOW). Treasuries also strengthened slightly, with 10 year yields closing the day at 1.968%.

Looking Ahead:

Futures look to a positive open this morning as investors await a slew of economic reports. Inflation, jobless claims, and durable goods data come in at 8:30 followed by the housing price index at 9am. Inflation, in particular, is expected to have fallen last month due to the strong decline of gasoline prices though the drop is expected to be brief. Today’s earnings of note include retailers Kohl’s (KSS), JCPenney, (JCP), and Gap (GPS).

Don’t miss our President, Oliver Pursche, of Fox Business tonight at 6:00 PM when he joins Charles Payne on “Making Money”, and make sure to tune into Money Matters with Gary Goldberg this Sunday at 11 AM on WOR 710 AM Radio to hear our complete market and economic commentary.  Gary’s guests this week are Nobel Prize winning Yale Economics Professor Robert J. Shiller and Doctor Kristine Gedroic.  Visit our website www.ggfs.com for details.

Tuesdays Market Recap:

Stocks increased in yesterday’s trading as Fed Chair Janet Yellen drew a narrative of US economy that has been improving in the past six months. She reiterated however, that the Fed will continue to remain “patient” in making a decision regarding the increase of Fed rates, language that seemed to denote that the Fed would be unlikely to raise rates in the near term. Markets were also aided by a couple of positive economic data points, including a positive reading in both home prices and consumer confidence, and a strong earnings report from home improvement giant Home Depot (HD). The Dow led all the major averages, which were all positive for the day, with a gain of .51%. Out of the ten S&P sectors, Utilities and Telecom once again showed leadership, both gaining .61%, while Healthcare was the only sector in the red with a drop of -.06%. Fed Chair Yellen’s positive notes on the economy also aided Treasuries with 10 year yields falling below 2% and closing at 1.98%.  

Looking Ahead:

Markets are mixed this morning, awaiting the second half of Fed Chair Janet Yellen’s testimony before Congress. The testimony, which will be in front of the Financial Services Committee, will once again begin at 10am. Investors will also be looking at January home sales data (10am) and the EIA’s weekly report on crude oil inventory (10:30am). Finally, major earnings releases of the day include Target (TGT), Lowes Companies (LOW), Dollar Tree (DLTR), and Chesapeake Energy (CHK).

Make sure to tune into Money Matters with Gary Goldberg this Sunday at 11:00 AM on WOR 710 AM Radio to hear a great interview with the founder of Zillow’s regarding the state of the real estate market, and to hear our latest economic and market commentary. And don’t miss our President, Oliver Pursche, this Thursday at 6 PM when he joins Charles Payne and crew on Fox Business for the hour. Visit our website www.ggfs.com for details.

Market Recap:

Markets mainly pulled back in yesterday’s trading, with only the Nasdaq being able to muster slight gains of .10%. Slumping oil prices and a disappointing existing home sales report drove the day’s action but investors were also seen to trade cautiously ahead of today’s Senate testimony by Fed Chair Janet Yellen. The fall in oil prices led to a .42% drop for the Energy sector, which along with telecom at -.58% were the two worst performers among the ten sectors of the S&P. On the other side, Utilities and Healthcare led with gains of .67% and .35% respectively.

Looking Ahead: 

Though there is economic data being released and Home Depot (HD) reporting earnings, today’s trading will most likely be driven by Fed Chair Janet Yellen’s testimony before the Senate Banking Committee. The markets wait for any clues or indications to determine the timing of a rate increase. Though she is expected to remain flexible in the verbiage, some investors believe that she will keep the possibility of a midyear hike alive after more dovish comments in January. The testimony is slated to begin at 10am. Aside from Home Depot (HD), other notable stocks that will be reporting earnings include Comcast (CMCSA), Hewlett Packard (HPQ), Macy’s (M).

Make sure to tune into CNBC this afternoon at 3:45 to watch our President, Oliver Pursche, when he provides our latest outlook and commentary live from the floor of the New York Stock Exchange. And don’t miss Money Matters with Gary Goldberg this Sunday at 11:00 AM on WOR 710 AM when Gary interview the founder of Zillow – the real estate company – and provides our complete market and economic analysis. Visit our website www.ggfs.com for details.