May 29 2015

Equities take a breather

5/28/15 Market Recap:

Equities took a breather yesterday with uncertainty in Europe and weakness in the Asian markets driving markets lower. Stocks moved down from the beginning of the session, reaching the day’s lows by mid-morning, but were able to pare most of the losses and close with only marginal declines at the end of the session. Most of the ten sectors were similarly lower though Utilities, Materials, and Healthcare managed to eke out slight gains. Economic releases of the day, meanwhile, were primarily positive. Pending home sales increased by 3.4% in April, its highest level in more than nine years, while initial jobless claims remained consistent with a strengthening job market despite rising higher than expected.  


Looking Ahead:

Futures are heading in the negative direction this morning, ahead of the second estimate of first quarter GDP. After showing meager first quarter growth in the first estimate, economists are expecting a downside revision that would show that the economy actually contracted in the first quarter. Just how great this revision will be is the ultimate question. Any significant deviation to the up or downside will throw a wrench into expectations and once again throw the market into another round of Fed rate hike speculation. Though volatility has been greater this week than the last few, it hasn’t translated into too much movement for the markets with up days followed by down days and vice versa. Through the end of Thursday’s session, the major averages were split between marginal gains and losses with the Dow index lagging at -.58% for the week and the Nasdaq leading with a meager .17% gain.

Be sure to listen to Money Matters with Gary Goldberg this Sunday at 11:00 AM on WOR 710 AM Radio to hear our latest economic and market analysis.  This week, Gary’s guest is former press secretary and political commentator Dana Perino. Visit www.ggfs.com for details.

 

May 27 2015

Futures point to a slight rebound

5/26/15 Market Recap: 

The markets began the shortened trading week on a negative note yesterday with each one of the major averages declining by more than 1%. After a week marked by vacillation and incremental rises on incredibly light participation, the markets moved in a more decided fashion yesterday, falling from the beginning of the session and ending near the day’s lows. At the forefront of investor’s minds seemed to be a mix of interest rate hike worries after a set of better than expected econ reports and renewed concern regarding Greece’s upcoming debt payments. April durable goods data, in particular, showed strength despite a negative headline number as non-defense capital goods orders, a common proxy for business investment, increased by 1%. Greek concerns meanwhile caused the euro to fall against the greenback and pushed the dollar to one month highs versus the euro.


Looking Ahead: 

Futures are pointing to a slight rebound after yesterday’s selloff caused the markets to fall by the most in about three weeks. Unlike yesterday, there is no major economic data in the data docket expected today, a respite that will give the markets time to digest yesterday’s news. Given the lack of market moving news, many traders are expecting a marginal recovery during today’s session as the market waits more substantial news to drive trading in either direction. Make sure to listen to Money Matters with Gary Goldberg this Sunday at 11:00 AM on WOR 710 AM Radio to hear our latest economic and market analysis.  This week, Gary’s guest is former press secretary and political commentator Dana Perino.   And don’t miss Oliver Pursche tonight on “Making Money with Charles Payne” on the Fox Business Network.  Oliver will provide analysis and commentary for the full hour from 6 to 7.   Visit our website www.ggfs.com for details.

 

May 22 2015

Bad news once again turns into good news

5/21/15 Market Recap:

Equities finished with modest gains yesterday as bad news once again turned into good news for the markets. Existing home sales disappointed, falling by 3.3%, and jobless claims rose more than expected but these economic data points lead to the belief that the Fed will continued its dovish stance regarding interest rates. With the first quarter earnings season nearly over and no other major market moving catalysts to drive trading, trading participation has been muted in recent sessions even as the averages continue to push against record levels. According to the Wall Street Journal, yesterday’s essentially flat close for the Dow marked the fifth consecutive day that the average has moved less than .15% in either direction, its longest such streak since 2006. The Nasdaq led all averages with a gain of .38% yesterday while the Russell was the sole decliner, finishing slightly below the neutral line. S&P sectors were primarily positive as well with seven of the ten sectors finishing higher. A rally in oil prices pushed energy stocks higher, the best sector performer with gains of .84%.


Looking Ahead:

Futures are moving marginally this morning ahead of the last trading day before the Memorial Day Weekend, the unofficial start of the summer season. Though most foresee light trading activity heading into the weekend, traders are still anticipating the release of April consumer price index data and a speech by Fed Chair Janet Yellen regarding Wednesday’s FOMC minutes at 1pm. Neither event however, is expected to bring any major surprises to the table. Make sure to listen to Money Matters with Gary Goldberg this Sunday at 11:00 AM on WOR 710 AM Radio to hear our latest economic and market analysis.   This week Gary’s guest are actor Joe Montagne discussing the true meaning of Memorial Day and Wegman’s executive chef Cindy Growman giving some great tips on grilling. Visit our website www.ggfs.com for details.

May 21 2015

Investors continue to consider yesterday’s April FOMC meeting minutes

05/20/15 Market Recap:

In what has been a common occurrence over the past few trading sessions, traders stayed primarily on the sidelines with the markets never straying too far from the neutral line. The major averages, hovering near record levels, closed mixed with either marginal gains or marginal losses. Even the Fed minutes, released during the afternoon, inspired nothing more than a short positive burst but did little to spur trading significantly in that direction. As expected, the minutes offered no significant deviation from the Fed’s ongoing message regarding data-dependency and generally agreed that the first quarter slowdown was due to temporary factors such as the west coast port strikes and harsh winter weather. The Fed, in its most explicit terms yet, argued against a June hike saying that it was “unlikely that June economic data would provide enough confirmation that the conditions for raising the target range for the federal funds rate had been satisfied” but stopped short from completely ruling out a near term hike. Sector performance during the session was equally mixed with gains and losses split equally between the ten S&P sectors. Telecom led all sectors with gains of .47% while Financials and Industrials lagged the most.  


Looking Ahead:

Markets are pointing to a slightly lower open this morning as investors continue to consider yesterday’s April FOMC meeting minutes. On tap for today, along with notable earnings releases from Hewlett Packard (HPQ) and Best Buy (BBY), is arguably the week’s busiest stream of econ data with jobless claims, flash manufacturing PMI, and existing home sales expected. Existing home sales, in particular, will be closely watched after Tuesday’s housing starts data pointed to the highest levels of new residential construction in more than seven years. Market participants are hoping for signs of a 2nd quarter rebound and growth in housing activity would certainly point to that. Make sure to listen to Money Matters with Gary Goldberg this Sunday at 11:00 AM on WOR 710 AM Radio to hear our latest economic and market analysis.  This week Gary’s guest is actor Joe Montagne.  Visit our website www.ggfs.com for details. 

 

 

May 20 2015

Markets are moving marginally higher

Market Recap 051915:

It was another light trading day in the market as investors continue to weigh evidence of a recovering US economy against the inevitability of a rate hike. Positive economic news, signaling a pick up from disappointing 1Q numbers, cause investors to worry that a rate hike could come quicker while poor economic news point to fears that the 1Q slowdown could spill into the current quarter. However, a continuing stagnation would force the Fed to kick the rate hike further down the road. It is clear that at this juncture, investors aren’t sure what scenario they favor. This uncertainty is leading to vacillation in the markets even as the averages continue to test and surpass record highs. The Dow notched another record close in yesterday’s session despite rising by only .07%, while the other major averages closed with marginal losses. Among the sectors, Financials and Healthcare led the way for the second consecutive day while Energy and Telecom stocks lagged. The dollar meanwhile recorded its best day against the Euro in over two months, rising by 1.5%, after news that the ECB planned to frontload bond purchases of its QE program during May and June in anticipation of decreasing liquidity in the summer months. 

Looking Ahead:

Markets are moving marginally higher this morning as investors eagerly await the release of the minutes from the FOMC’s April meeting. With no major economic data in the docket, the minutes, which will be released this afternoon, will be parsed for more insight on Fed thinking. Though investors shouldn’t expect a clear indication of when the rate will take place, the Fed’s outlook and overall assessment of the current state of the US economy hold significant importance. Aside from the release of the minutes, investors also have another round of retailer earnings to digest today with Target (TGT) and Lowes (LOW) reporting among other. In overnight trading, the Treasuries are moving slightly higher while the dollar is continues its recent rally versus the euro.

Make sure to listen to Money Matters with Gary Goldberg this 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. 

 

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