Apr 24 2015

Equity markets moved higher in spite of disappointing economic data

4/23/15 Market Recap:

Equity markets moved higher yesterday in spite of disappointing economic data and another slew of so-so earnings reports. On the economic front, March new home sales data fell by 11%, the largest percentage drop since 2013. Expectations were higher considering home sales had registered three straight months of significant gains before last month’s miss. Weekly jobless claims rose slightly higher than expected, though the figure remains below the psychological 300k mark. Yesterday’s earnings reports were once again a mixed bag, with most companies failing to show revenue growth on a year over year basis. This trend, a common one among those who have released so far, stems in part from the recent surge of the US dollar against its major counterparts. The Russell 2000 and Nasdaq led the major averages in yesterday’s trading, with the latter setting a new closing record high at 5,056.06. A majority of the S&P sectors registered gains for the day as well, led by Telecom, Energy, and Utilities.


Looking Ahead:

Futures are higher ahead of today’s trading with the Nasdaq looking to make a push into record intraday levels after reaching a new record close level last night. Aiding in these efforts are tech giants Amazon (AMZN), Google (GOOG) and Microsoft (MSFT), which are all up pre-market after posting quarterly results after yesterday’s close. Amazon in particular, is up over 10% so far this morning, despite posting a loss in the quarter, thanks to revenues that increased by 15% year over year. Today’s earnings and economic data releases are light to finish off what has been a busy week of news. The dollar is falling against the yen and euro, with the greenback falling to a two week low against the euro. Treasury yields are slightly higher.

Make sure to tune into Money Matters with Gary Goldberg this Sunday at 11 AM on WOR 710 AM radio to hear our latest market and economic commentary.  Visit www.ggfs.com for details.

 

Apr 23 2015

Investors are in store for another day of significant earnings releases

4/22/15 Market Recap:

Stocks gained yesterday, despite a mixed bag of earnings releases, thanks to encouraging existing homes sales data and positive news out of China for Visa (V) and Mastercard (MA). The Chinese government announced that it would finally open up the bank-card clearing market, a move that would end the monopoly enjoyed by China Unionpay and allow for the expansion of companies like Mastercard and Visa. According to a Reuters report, bank card transactions in China for 2014 totaled $6.84 trillion, a 33% increase from 2013. Both Visa and Mastercard increased by 4% on the news. This strong performance helped drive tech stocks higher by over 1% in yesterday’s trading, with the sector taking leadership in the S&P. Gains in the S&P and among the averages were broad based with all 10 sectors and 4 major indices registering increases on the day.


Looking Ahead:

Equity futures are moving lower this morning as this earnings season’s biggest week rolls on. Investors are in store for another day of significant earnings releases with Caterpillar (CAT), Procter and Gamble (PG), and General Motors (GM) all releasing today along with tech titans Microsoft (MSFT), Amazon (AMZN), and Google (GOOG). Aside from earnings, there is a moderate amount of economic data including weekly jobless claims and new home sales. The housing data in particular, will be carefully parsed after yesterday’s encouraging existing home sales report. Existing home sales increased by 6% in March, the largest increase in a year and a half. Treasuries, which sold off yesterday, are falling again in overnight trading while the dollar is gaining against its major counterparts.

Make sure to tune into Money Matters with Gary Goldberg this Sunday at 11 AM on WOR 710 AM radio to hear our latest market and economic commentary.  Visit our website www.ggfs.com for details.

 

Apr 22 2015

Lack of Economic News & Earnings Releases do little to excite Investors

4/21/15 Market Recap:

Stocks closed mostly lower yesterday with a lack of economic news to drive the markets and the day’s earnings releases doing little to excite investors. Several big names reported, including Dow components United Technologies (UTX), DuPont (DD), and Verizon (VZ), with most of the releases showing little to no growth on the top line. The Dow paced the day’s declines, falling by almost half a percent, followed by the S&P and Russell. Among the averages, the Nasdaq was the lone bright spot of the day, gaining by .4%, thanks in part to biotech stocks which increased after a prospective offer by Teva Pharmaceutical (TEVA) to acquire Mylan (MYL). Mylan closed the session up almost 9%. S&P sectors closed mainly lower as well, with seven of the ten S&P sectors ending lower on the day.  Energy stocks fared the worst, decreasing by more than 1% as oil prices fell on the news that the Saudi led military operations in Yemen were ending.


Looking Ahead:

Futures are falling ahead of today’s trading day with investors waiting for earnings from several large names along with a few pieces of economic data. Boeing (BA), McDonalds (MCD), and Coca-Cola (KO) are among the notable companies reporting today along with tech names like Facebook (FB) and eBay (EBAY) coming after the market’s close. Investors are watching for top line numbers in particular, with revenue growth disappointing so far in the earnings season. According to Factset, 45% of the S&P companies that have reported earnings so far have beaten revenue estimates, a number far below the five year average of 58% beating top line expectations. The dollar is slipping in overnight trading while Treasuries are marginally higher.

Make sure to tune into Money Matters with Gary Goldberg this Sunday at 11 AM on WOR 710 AM radio to hear our latest market and economic commentary.  Visit our website www.ggfs.com for details.

 

Apr 21 2015

Futures are moving higher this morning

4/20/15 Market Recap:

The equity markets started the week on a positive note, regaining most of the losses that took place on Friday thanks to a lift from the People’s Bank of China and some positive earnings reports from the likes of Morgan Stanley (MS) and Hasbro (HAS). The PBOC’s move to lower the reserve requirement by 100 basis points on Sunday, the largest cut since 2008, helped overseas markets in Asia and Europe and drove much of the positive sentiment in early trading yesterday. Gains were broad-based with three of the four major indices and half of the ten S&P sectors registering gains greater than 1%. Among the averages, the Nasdaq led the way, gaining by 1.3%, while tech stocks showed leadership in the S&P with an increase of 1.8%.


Looking Ahead:

Futures are moving higher this morning with markets overseas still being buoyed upwards in overnight trading by China’s decision to cut reserve requirements. Investors today will be focused on earnings reports from market stalwarts like Verizon (VZ), United Technologies (UTX), and DuPont (DD) among others while digesting IBM’s (IBM) mixed earnings release after yesterday’s close. The tech giant missed on the top line, reporting its 12th consecutive quarter of revenue declines, but beat earnings expectations. Currency headwinds in particular, a big theme that market participants should be looking out for with the dollar’s recent surge, certainly affected revenues with the company now expecting a 7% negative impact in the full year. IBM is currently flat in pre-market trading. The dollar is gaining against the euro and yen while US Treasuries are largely unchanged.

Make sure to tune into Money Matters with Gary Goldberg this Sunday at 11 AM on WOR 710 AM radio to hear our latest market and economic commentary.  Visit our website www.ggfs.com for details.

 

Apr 20 2015

This Week’s Market Moving Events

Market Recap:

Just as Icarus tumbled from the sky, stocks fell sharply on Friday as market participants recognized that their projections of better than forecast earnings – even if as a result of sharp downward revisions – and progress between Greece and its creditors were a bit above reality. Investors were also faced with some negative economic reports from around the globe, as well as an announcement from China to curb investor’s ability to utilize margin for investment purposes, further pressuring stock and commodity prices. Over the weekend the People’s Bank of China did its part to help boost markets by lowering its reserve requirements for all banks by 1% to 18.5%.


Looking Ahead:

Although overshadowed by earnings reports, this week’s economic reports will likely prove more important for investors looking for a catalyst to propel stocks higher. Recent Eurozone Industrial Production was twice as strong as forecast, a clear indication of continued economic improvements on the continent. This will also be the week where investors will learn more about Greece’s ability and willingness to adhere to its debt repayment agreements.


This Week’s Market Moving Events:

Monday: German PPI, Chicago Fed National Activity Index. Halliburton (HAL), IBM (IBM) and Morgan Stanley (MS) report

Tuesday: US Redbook Report, Japanese Merchandize Trade Index. Amgen (AMGN), DuPont (DD), Lockheed Martin (LMT), Harley Davidson (HDI), Yahoo (YHOO), Yum Brands (YUM) report

Wednesday: Chinese PMI, US Mortgage Apps, Home Price Index, Existing Home Sales, Japan PMI. Abbott Labs (ABT), CocaCola Co. (KO), AT&T (T), McDonalds (MCD) report

Thursday: Eurozone PMI, US Jobless Claims, PMI Manufacturing, New Home Sales. 3M (MMM), Amazon (AMZN), Caterpillar (CAT), General Motors (GM), Raytheon (RTN), Starbucks (SBUX), Stanley Black & Decker (SWK) report

Friday: Durable Goods report. A lot of small cap companies report as does Whirlpool (WHR).

Make sure to tune into Money Matters with Gary Goldberg this Sunday at 11 AM on WOR 710 AM radio to hear our latest market and economic commentary.  Visit our website www.ggfs.com for details.

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