Aug 28 2015

Wall St set to fall after huge two-day rally

Market Recap 08/26/15:
 
Wall Street stocks rallied on Thursday, with major indexes up more than 2 percent as a strong read on U.S. economic growth offset continued concerns over the pace of growth in China. The day’s gains were broad, with sectors rising across the board and commodities rebounding as well. Crude oil surged 10 percent. The GDP report comes a day after a Federal Reserve official said that a September rate hike was “less compelling” given recent market volatility, suggesting that the central bank would continue to be accommodative for longer. With the day’s gains, major indexes turned higher for the week, which has been extremely volatile. After falling sharply on Monday and Tuesday, the Dow posted its best two-day point gain in its history on Wednesday and Thursday.
 
Looking ahead:
 
Futures were lower on Friday, indicating that major indexes would open about 1 percent lower despite a rally in Chinese shares. The move was an indication that volatility is likely to persist on Wall Street until the situation in China has been resolved or at least stabilized. With little clarity on whether China has gone through the worst of its slump, it will be hard for investors to gauge whether U.S. stocks have fully priced in the impact of slower growth in the world’s second-largest economy. In addition, the annual meeting of central bankers at Jackson Hole continues to go on, which could drive market action in the near term if there is any indication that policies could be changed. Make sure you don’t miss this week’s Money Matters with Gary Goldberg, where the guest will be S&P Capital IQ’s and friend of Money Matters Sam Stovall, as well as Dr. Kristine Gedroic, who will talk about healthy eating and lifestyle habits. Visit our website www.ggfs.com for more details.

Aug 27 2015

Easing rate concerns give Wall St big rally

Market Recap 08/26/15:

U.S. stocks jumped on Wednesday, with major indexes posting their best one-day advance in four years. The rally snapped a six-day losing streak, however, one driven by slowing growth in China and that country’s plummeting stock market. The rally came after New York Fed President William Dudley said that the prospect of raising rates in September seemed “less compelling” than it had a few weeks ago given the turmoil in the market. Investors have been concerned that the Fed would still raise rates in September despite the issues in China, and with those concerns seemingly eased, they took to buying bargains in beaten-down shares. Apple (AAPL) and Google (GOOGL) were among the biggest gainers of the day.

Looking ahead:

Futures pointed to further gains on Thursday, with global shares rallying and China’s equity market up more than 5 percent. The gains were broad, with futures higher across the board and oil climbing back above $40 per barrel. However, the day could be volatile given the multi-day Fed meeting in Jackson Hole, which begins today. Investors are looking closely for any sign of when interest rates will be raised, and the market could move on any comments by Fed officials. In company news, retail stocks will be in view, with a number of outlets set to report quarterly results, including Tiffany (TIF), Aeropostale (ARO) and Gamestop (GME). Make sure you don’t miss this week’s Money Matters with Gary Goldberg, where the guest will be S&P Capital IQ’s and friend of Money Matters Sam Stovall, as well as Dr. Kristine Gedroic, who will talk about healthy eating and lifestyle habits. Visit our website www.ggfs.com for more details.

Aug 26 2015

Wall St looks to rise as China continues to crater

Market Recap 08/25/15:
 
U.S. stocks closed lower on Tuesday as a strong initial rally was dramatically reversed in afternoon trading. Wall Street opened sharply higher after the People’s Bank of China cut interest rates and made it easier for banks to lend, measures designed to stabilize the country’s plummeting stock market, but concerns soon grew that these moves wouldn’t be sufficient to turn the tide, leading to the afternoon selloff. The volatility in China comes at a time when U.S. earnings growth is tepid and uncertainty remains over when the Federal Reserve will raise interest rates, conditions that could keep the trend negative on Wall Street in the short term. Volatility is expected to remain elevated until there is further clarity on the situation in China.
 
Looking ahead:
 
The market’s big swings looked to continue on Wednesday, with futures pointing to a sharp advance despite shares in China falling for a fifth straight session. Some of the market’s most beaten-down shares – including Apple (AAPL) and Netflix (NFLX) – climbed in premarket trading, which could suggest investors are looking for bargains following some the market’s recent decline. Sentiment was also lifted after Schlumberger (SLB ) agreed to buy Cameron International (CAM) in a deal valued at $14.8 billion. Further M&A deals could suggest that companies see value in the market despite macroeconomic headwinds. Make sure you don’t miss this week’s Money Matters with Gary Goldberg, where the guest will be S&P Capital IQ’s and friend of Money Matters Sam Stovall, as well as Dr. Kristine Gedroic, who will talk about healthy eating and lifestyle habits. Visit our website www.ggfs.com for more details.

Aug 25 2015

Market volatility continues amid China rout

Market Recap 08/24/15:
 
U.S. stocks suffered their worst one-day decline in four years on Monday, with the S&P 500 formally entering correction territory as weakness in China’s market continued to drag down Wall Street. Volatility was extremely high, with the Dow Jones industrial average at one point plummeting more than 1,000 points for its biggest one-day trading range ever, though it closed off those lows. The sell-off was merely the latest decline driven by China, where slowing growth has sparked concerns about the state of the overall global economy. Apple (AAPL) – which has a lot of revenue exposure to China – fell more than 10 percent on Monday, though it rebounded in afternoon trading after Chief Executive Tim Cook reassured investors about its business in China.
 
Looking ahead:
 
Futures pointed to a sharp rebound on Tuesday. At current levels, major indexes indicated to open about 3 percent higher. The jump came after China made moves to stabilize its rocky economy, cutting interest rates and allowing banks to lend more. While China’s market still fell sharply after the announcement, the news could add some stability to Wall Street, where the S&P 500 entered correction territory on Monday because of weakness in China’s economy. However, big swings are likely to continue, given continued questions over the strength of the global economy and persistent uncertainty over when the Federal Reserve will begin raising rates. Tune into Making Money with Charles Payne on the Fox Business Network this Thursday at 6, when our President Oliver Pursche will provide our latest outlook and market commentary. Make sure you don’t miss this week’s Money Matters with Gary Goldberg, where the guest will be S&P Capital IQ’s and friend of Money Matters Sam Stovall, as well as Dr. Kristine Gedroic, who will talk about healthy eating and and lifestyle habits. Visit our website www.ggfs.com for more details.

Aug 24 2015

Market weakness continues as Chinese shares enter free fall

Market Recap 08/21/15:
 
U.S. stocks fell sharply on Friday, with major indexes suffering their worst one-day percentage decline since 2011 on continued fears over a slowdown in China. Wall Street moves have been largely dictated by economic developments in the world’s second-largest economy, with volatility spiking ever since China unexpectedly devalued its currency. On Friday, weak manufacturing data spurred another large decline in Shanghai shares, which prompted the broad and steep decline in U.S. shares. With the day’s decline, the Dow ended down more than 10 percent from a record hit early this year, putting the blue-chip index into correction territory. All major S&P 500 indexes ended lower, but Energy shares were particularly pressured, with crude oil prices falling under $40 per barrel for the first time since the financial crisis. Volatility is likely to stay elevated, given uncertainty over when the Federal Reserve will begin raising interest rates and profit growth low.
 
Looking ahead:
 
 The weakness on Wall Street continued on Monday, with sharp losses for major indexes. Many investors had hoped that China’s government would announce some measures to stabilize its market over the weekend, and the absence of anything suggests that weakness could be likely to continue. An index of shares in Shanghai fell more than 8 percent on Monday. Large-cap companies across industries were sharply lower in premarket trading, indicating that investors were abandoning risky assets like stocks until things stabilize or there is more clarity. Tune into Making Money with Charles Payne on the Fox Business Network this Thursday at 6, when our President Oliver Pursche will provide our latest outlook and market commentary. Make sure you don’t miss this week’s Money Matters with Gary Goldberg, which will air Sunday at 11 AM on WOR 710 AM Radio. Visit our website www.ggfs.com for more details.

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