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Showing posts from August, 2014

August 30, 2014 – Weekend Market Comment

August 30, 2014 – U.S. stocks rose on Friday, lifting the S&P 500 to another record finish, as investors welcomed a better-than-expected read on U.S. consumer confidence and bypassed geopolitical worries. The bullish sentiment continues to build; August started out as an ugly month, but will close out with real gains.

Trading in a 75-point range on either side of neutral, the Dow Jones Industrial Average rose 18.88 points, or 0.1 percent, to 17,098.45, gaining 0.6 percent for the week and 3.2 percent in August. Up 0.8 percent from a week ago and 3.8 percent for the month, the S&P 500 rose 6.63 points, or 0.3 percent, to 2003.37, with financials the best performing and industrials faring the worst of its 10 major industry groups. The Nasdaq gained 22.58 points, or 0.5 percent, to 4,580.27, up 0.9 percent for the week and 4.8 percent for August. For every stock that fell, more than two rose on the New York Stock Exchange, where almost 617 million shares traded. Composite volume…

August 23, 2014 – Weekend Market Comment

August 23, 2014 – U.S. stocks mostly fell on Friday, with the S&P 500 halting a four-session win streak that lifted it to a record, as investors weighed rising tension between Russia and Ukraine and speeches by European Central Bank President Mario Draghi and Federal Reserve Chair Janet Yellen.  Both central bankers gave the market what was expected, with Yellen reiterating that slack remains in the U.S. labor market even as the American economy continues a five-year recovery and Draghi expressing confidence that stimulus already announced and a weaker euro would help the euro-zone economy, but the ECB is ready to do more if needed.

The Dow Jones Industrial Average shed 38.27 points, or 0.2 percent, to 17,001.22, leaving it 2 percent higher for the week. The Nasdaq added 6.45 points, or 0.2 percent, to, 4,538.55, up 1.7 percent from the week earlier. For every five stocks rising, less than nine declined on the New York Stock Exchange, where 521 million shares traded. Composite volu…

August 16, 2014 – Weekend Market Comment

August 16, 2014 – U.S. stocks ended the week mixed in below-average trade volume after news of fresh conflict between Russia and Ukraine.
Early Friday, the major indices plunged, losing morning gains with only the Nasdaq climbing back into positive territory in the close for its best week since May. The Dow also recorded its best weekly gain in five weeks, despite closing lower for the day. With a flat close, the S&P 500 had its best weekly gain since July 3. The big stocks are on edge, early Friday the Dow Jones Industrial Average lost most of its gains for the year as it dropped more than 130 points following the news, with Boeing among the hardest hit and Coca-Cola retaining the lead for blue-chip advancers. The swings of the market on both sides are over-exaggerated due to low volume. We're just seeing a market that's worried about it but yet not falling apart at the same time.
Well last week you read that my leading indicators looked like the were turning around and …

August 9, 2014 – Weekend Market Comment

August 9, 2014 – Stocks finish the Friday session and the week on a strong note, with the S&P 500 and Dow posting their biggest one-day point and percentage gains since March 4. The major indexes all see weekly gains as Ukraine fears moved to the back burner. Investors on Friday proved that they have been a lot more worried about Ukraine and the potential for a deeper conflict between the West and Russia than they are about fresh U.S. military action in Iraq.

We have been in a corrective mode over the last two weeks, but I don’t think the geopolitical risks have become noticeably worse, and the earnings season, which should matter the most, has turned out to be good,

S&P 500 — up 22.01 points, or 1.2%, at 1,931.59. For the week, the S&P rises 0.3%. DJIA — up 185.66, or 1.1%, at 16,553.93. That leaves the Dow up 0.4% for the week after two consecutive weekly losses. Nasdaq Composite — up 35.93, or 0.8%, to 4,370.90, booking a 0.4% gain for the week.
That was a nice day Fri…

August 3, 2014 – Weekend Market Comment

August 3, 2014 – U.S. stocks declined on Friday, with the S&P 500 recording its worst weekly loss since June 2012, as momentum from the prior day's rout remained in play. On Thursday, the market was hit with multiple combination punches, a few may have even landed below the belt! Let's start with some weak earnings reports from YELP, MOH, GLUU, MTW and DDD.
Those were enough to get Nasdaq moving lower, but we were then hammered with the weakest Chicago Purchasing Managers Index (PMI) in the past 13 months! Then, just to really get markets roiled, they were hit with Argentina's default, and just for good measure Adidas said poor sales of golf equipment and sanctions against Russia caused their profits to fall by 16 percent. That turned a weak opening into a bloodletting as investors hit the exits.
Stocks, bonds, gold, oil and other commodities are falling together, something we have not seen in a few years. I am especially concerned that, unlike previous declines, bon…