Jan 27 2015

Stocks vacillated on Monday as north-easterners prepared for an incoming blizzard

Market Recap:

Stocks vacillated most of Monday as north-easterners prepared for an incoming blizzard that was estimated to possibly bring up to 3 feet of snow to the parts of the region. Energy shares led markets higher as Oil prices strengthened a bit on the heels of several prominent analysts estimating that prices will begin to stabilize around current levels. Telecom, Utility and Consumer Staple shares all fell slightly, while technology shares dropped by nearly ½%. The U.S. dollar strengthened further against the Euro after leftist Alexis Tsipras won the Greek general elections raising fears of further destabilization for the Eurozone. 


 

Looking Ahead:

New York City and surrounding areas are all but shut-down on Tuesday as public officials closed roads and public transportation as a cautionary measure relating to “blizzard” Juno. None-the-less, markets are indicating a positive open ahead of key economic and earnings reports. In late and overnight news, the UK’s economy grew less than forecast – its slowest pace in five years, and Russia’s debt was downgraded to Junk status by S&P. Later this week investors will get a first look at U.S. fourth quarter GDP, which is estimated to show a 3.2% growth rate.

Make sure to tune into Money Matters with Gary Goldberg this Saturday at 2:00 PM and Sunday at 11:00 AM on WOR 710 AM Radio to hear our complete economic and market analysis. Visit our website www.ggfs.com for details.

Jan 26 2015

This Week’s Market Moving Events

Market Recap:

Stocks fell on Friday in an otherwise positive week for investors, as worries over earnings season and news of the death of Saudi Arabia’s ruling King Abdula caused renewed investor anxiety. Moreover, market participants grew increasingly uneasy ahead of Greece’s general election, in which Leftist Alexix Tsipras did (as expected ahead of Sunday’s election) win majority. The win by the socialist Syriza party brings Greece back to the front-burner and adds to Europe’s already plentiful woes.

Looking Ahead:

In addition to a monstrous snow storm that will impact travel and economic activity in the North East over the next couple of days, Wall Street traders will be focusing on today’s Dallas Manufacturing report and tomorrow’s full economic calendar that includes the kick-off of the years’ first FOMC meeting and a deluge of earnings.

This Week’s Market Moving Events:

  • Monday: PMI Flash Services, Dallas Fed Manufacturing report
  • Tuesday: FOMC meeting, Durable Goods, Redbook report, Case Shiller Home prices, New Home sales, Consumer Confidence, Richmond Manufacturing survey, Investor Confidence report. 3M (MMM), AT&T (T), Caterpillar (CAT), Dupont (DD), Lockheed Martin (LMT), Pfizer (PFE), Procter & Gamble (PG) and Yahoo (YHOO) report earnings.
  • Wednesday: Mortgage applications, FOMC Meeting minutes and press conference. Boeing Air (BA), Facebook (FB), International Paper (IP) and Murphy Oil (MUR) report earnings.
  • Thursday: Eurozone Inflations, Jobless Claims, Pending Home Sales. Abbott Labs (ABT), Amazon (AMZN), Conoco Phillips (COP), Ford (F), Raytheon (RTN) and Visa (V) report.
  • Friday: Fourth Quarter GDP and Consumer Sentiment are release. Elli Lilly (LLY) and Chevron (CVX) report earnings.

Jan 22 2015

Investors held their collective breaths

Market Recap:

Markets were relatively calm on Wednesday as investors held their collective breaths ahead of the European Central Bank’s policy announcement scheduled for Thursday morning. Although there was some intra-day volatility, stocks generally closed higher as all ten sectors of the S&P climbed, Energy and Utility shares led markets higher, as Oil rose over 1% while Gold, Silver and other precious metals fell.


Looking Ahead:

Thursday morning’s Jobless Claims showed a decline, in line with expectations, helping to lift equity futures. More significantly, the ECB announced the launch of additional Bond Purchases, which surpassed market expectations in as much as ECB President Mario Draghi committed to extend QE through the end of 2016 with the potential of keeping it open-ended until the Eurozone reaches a 2% inflation rate and improves its overall employment situation.

Make sure to tune into Money Matters with Gary Goldberg this weekend on WOR 710 AM Radio, airing at a special time on Saturday at 2:30 PM and Sunday at 11:00 AM. We’ll be discussing our latest economic outlook as well as providing our analysis of the ECB decision and what to look for before increasing your portfolios international exposure.   Gary’s guest this week is Richard Lustig, the winner of 7 lottery grand prizes.  Visit our website www.ggfs.com for details.

Jan 21 2015

Maintaining a longer-term outlook could prove to be the best move

Market Recap:

Major averages may have closed little changed from their opening levels, but volatility was certainly a part of the landscape on Tuesday. The Dow Jones dropped as much as 150 points before rebounding to close flat as 7 of the 10 sectors of the S&P ended higher as Industrial and Technology shares soared nearly 1%. The U.S. dollar weakened slightly, as oil fell and gold and silver rose more than 1%. On the earnings front, Halliburton (HAL), IBM (IBM), and Netflix (NTFX) all beat estimates and rose sharply as a result.


Looking Ahead:

The European Central Bank is expected to announce its new bond purchase program on Thursday, and while anxiously anticipated, we do not believe there will be much of a surprise in the report and pursuant press conference. Wednesday’s U.S. mortgage applications and housing starts are likely to drive market action here in the U.S.  Given the current volatile environment for stocks and rising levels of concerns from investors, we would like to remind everyone that on balance and when taken as a whole, economic and earnings news in the United States has made significant improvements in the past few years and that while “things” are far from great, they are certainly good. As our Chief Investment Officer, Bill Krivicich, wrote in his monthly Forbes article, sticking with high-quality dividend paying stocks and maintaining a longer-term outlook will likely prove to be the best move for most (read the article here) Forbes (Krivicich)2And make sure to tune into Money Matters with Gary Goldberg this Saturday at 2:00 PM and Sunday at 11:00 AM on WOR 710 AM Radio to hear our latest economic and market analysis. Visit our website www.ggfs.com for details.   Gary’s guest this week is Richard Lustig, winner of 7 lottery grand prizes.

Jan 16 2015

Next Week’s Market Moving Events

Market Recap:

In spite of reasonably strong earnings reports, stocks sold off again on Thursday, falling about ½%. Consumer Staple and Utility shares were the sole sectors in positive territory yesterday as Financials and Healthcare stocks fell by more than 1%. Commodities were mostly lower, as oil retreated again after gaining some footing and rallying on Wednesday. The 10-Year Treasury Yield fell below 1.75% while other longer-dated benchmark yields all fell to their lowest levels in history, as the dollar strengthened and concerns over the world economy continued to permeate market sentiment.

 


Looking Ahead:

A very strong earnings report by Intel (INTC) helped lift futures from their lows on Friday morning as market participants continue to pressure markets. Currency markets, and to a lesser extent fixed income and equity markets are rattled by the Swiss Central Bank’s decision to decouple from the Euro currency, a move that is being viewed that much more weakness for the Euro may lie ahead. Next Friday’s Leading Indicators report could help things turn around as it will likely show strong economic growth expectations ahead. Make sure to tune into Fox Business next Tuesday evening at 6 PM when our President, Oliver Pursche, joins Charles Payne and the panel of experts to discuss our latest economic and market outlook. And don’t miss Money Matters with Gary Goldberg this Saturday at 7am, 2:30pm, and then again at 6pm as well as on Sunday at 11:00AM on WOR 710 AM Radio to hear our complete economic analysis and market commentary.

Next Week’s Market Moving Events:

 

  • Monday: Martin Luther King Day – US Markets and Banks are closed. Chinese GDP, Retail Sales data and Industrial Production figures.
  • Tuesday: European inflation data and US Market Index
  • Wednesday: Housing Starts, Mortgage Applications, Chinese Inflation data
  • Thursday: House Prices, Jobless Claims, PMI Manufacturing data, Consumer Comfort report and the EIA Natural Gas Inventories
  • Friday: Existing Home Sales and Leading Indicators

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