Mar 31

Investor’s negative sentiment seem to be focused on oil prices

3/30/15 Market Recap:

The markets began the week on a positive note yesterday, with broad advances among the major averages and individual sectors. Positive economic data was one of the primary reasons for yesterday’s move, with consumer income rising by .4% in February. Though consumer spending in the month was only up marginally, economists are hoping that the rise in income will translate into stronger spending in the future. The markets were also buoyed by deals in Healthcare, particularly the acquisition of pharmacy benefit manager Catamaran Corp. (CTRX) by healthcare giant UnitedHealth Group (UNH). UnitedHealth was up 2.5% in yesterday’s session. All four of the major averages rose by more than a 1% in yesterday’s trading, with the Dow gaining by 1.5%. Among the sectors, Energy and Financials showed leadership, rising by 2.1% and 1.4% respectively. The Dollar gained against the Yen and the Euro while Treasury yields increased slightly to 1.96%.


Looking Ahead:

Futures are lowering this morning, the last day of the first quarter. Investor’s negative sentiment seem to be focused on oil prices, which are continuing their recent slide as the markets wait for the outcome of the Iranian nuclear talks. If Iranian sanctions are lifted, an increase in oil production and export is likely to follow resulting in oil falling further. On the economic front, investors will be digesting a slew of information set to release at different points this morning including home prices, manufacturing, and consumer confidence data. Overnight, the dollar is continuing to move higher against its counterparts while Treasury prices have increased slightly. 

Don’t miss our President, Oliver Pursche, on Fox Business tonight at 6 PM when he joins Charles Payne for the hour to discuss the current environment and upcoming earnings season. And make sure to tune into Money Matters with Gary Goldberg this Sunday at 11 AM on WOR 710 AM Radio to hear our complete market and economic analysis. Visit www.ggfs.com for more details.

Mar 27

Markets attempt to avoid a fifth consecutive day of declines

3/26/15 Market Recap:

In what has been a familiar story through the course of this week, markets fell again in yesterday’s trading with investors focused on reports that Saudi Arabia had launched air strikes against rebels in Yemen. On a positive note, despite falling for the day, markets did close above session lows thanks to strong jobless claims data and some positive earnings surprises. The S&P, Dow, and Russell closed with similar declines for the day, falling by .2% while the Nasdaq fell by .3%. Losses among the 10 S&P sectors were broad based as well, with only Materials and Tech managing gains on the day. Treasuries also declined, sending 10 year yields to 2% while the Dollar recovered against the Euro.


Looking Ahead:

Futures are slightly lower this morning as the markets attempt to avoid a fifth consecutive day of declines. This week has been a rough one for the markets with the Dow and S&P both down 2.50% so far this week. On the economic front, the final estimate of fourth quarter GDP came in unchanged at +2.2%. Later this morning, consumer sentiment data will be released, hopefully providing some good news for investors, leading to a break the current losing streak. Both the US dollar and Treasures are slightly higher in overnight trading.

Don’t miss Money Matters with Gary Goldberg this Sunday at 11:00 AM on WOR 710 AM Radio when Gary interviews Don DiMicco, former CEO of Nucor and author of “American Made.” Visit www.ggfs.com for details.

Mar 26

Futures are negative following yesterday’s broad market selloff

3/25/15 Market Recap:

The equity markets fell again in yesterday’s trading, its third consecutive day of declines, with losses accelerating towards the close of the session. According to traders, there was no one particular event that drove selling pressure but a mix of factors including negative economic data, namely durable goods orders, along with investors taking profits as we near the end of the quarter. Durable goods orders fell by 1.4% in February, significantly more than expected, and fuelled questions regarding the economy’s growth. All four of the major averages declined yesterday, with the Nasdaq and Russell 2000 falling by greater than 2%. Similarly, nine of the ten S&P sectors pulled back with a majority of them falling by more than 1%. Energy was the lone exception, gaining 1.22% on the session thanks to rising oil prices.


Looking Ahead:

Futures are negative this morning following yesterday’s broad market selloff. Economic data for the day is light with weekly jobless claims being released at 8:30. Oil prices are rising in overnight trading after reports of airstrikes in Yemen by Saudi Arabian forces. Additionally, treasuries are falling slightly while the euro continues its positive momentum against the dollar.

Don’t miss Money Matters with Gary Goldberg this Sunday at 11:00 AM on WOR 710 AM Radio when Gary interviews Don DiMicco, former CEO of Nucor and author of “American Made.” Visit www.ggfs.com for details.

Mar 25

Market digests the news of a blockbuster merger deal

3/24/15 Market Recap:

Stocks fell in yesterday’s trading as good economic news, particularly in new home sales, became bad news for the market. In what has been a regular occurrence in recent trading, any positive indication coming from the US economy has led to speculation that the Fed may be more willing to raise rates in the near term. In yesterday’s case, that better than expected economic news came from new home sales which increased by 7.8% month over month and reached its highest levels in seven years. The market has also been inversely correlated with the Dollar, which rebounded yesterday against its major counterparts. All of the major averages were down with the S&P losing the most in the session. Among the 10 S&P sectors, declines were similarly broad-based with Utilities falling by more than 1%.


Looking Ahead:

Futures are flat this morning as the market digests the news of a blockbuster merger deal that would combine HJ Heinz and Kraft Foods. The combined company, which will be called The Kraft Heinz Company, will be the third largest food and beverage company in the US and the fifth largest in the world. Economic data for the day is light with durable orders coming at 8:30 am. In overnight trading, the Euro is once again gaining ground on the Dollar while Treasury yields continue to fall further below 1.9%.

Don’t miss Money Matters with Gary Goldberg on Sunday at 11 AM on WOR 710 AM Radio for a more detailed discussion of the current economic, market environment and what investors should focus on now. Visit www.ggfs.com for details.

Mar 24

CPI data expected to see its first monthly increase

3/23/15 Market Recap: 

Despite all four major averages hovering around positive levels for most of the day on positive existing home sales data and a weakening dollar, the broad markets closed mixed due to some late day selling and profit taking. The Dow and S&P were able to hang on to slight gains while the Russell 2000 and Nasdaq both decreased, with the latter falling by .31%. Among the S&P sectors, gains outnumbered losses with Consumer Staples, Telecom, and Utilities leading the way. On the other end, Industrials, Financials, and Healthcare lagged. Treasuries increased once again with 10 year yields falling to 1.91%, its lowest point in the last six weeks while the dollar extended its recent selloff against its major counterparts.


Looking Ahead: 

Futures are higher this morning, ahead of a busy economic release day. Consumer price index data, which will come first at 8:30, is expected to see its first monthly increase since October. This will arguably be the most scrutinized data point of the day with the Fed making it clear that inflation, which is currently well below their 2% target, is something that they are monitoring closely. Aside from CPI, investors should also look out for manufacturing PMI and new home sales data coming later in the morning. In overnight trading, the Dollar is slightly lower against the Euro while Treasuries are slightly higher.

Don’t miss Money Matters with Gary Goldberg on Sunday at 11 AM on WOR 710 AM Radio for a more detailed discussion of the current economic, market environment and what investors should focus on now. Visit www.ggfs.com for details.

Mar 23

This Week’s Market Moving Events

3/20/15 Market Recap:

Stocks rose higher on Friday, closing out a positive, yet volatile week for the markets. Friday’s trading was buoyed by better than expected earnings reports from the likes of Nike and Darden Restaurants along with a surge in oil prices that drove energy stocks higher. Energy stocks led all S&P sectors, rising 1.37% during the session. The day’s advances capped off a great week for the markets with the four major indices all increasing by more than 2% for the trading week. The Nasdaq led the way with gains of 3.18% and is inching closer towards the index’s record highs, levels not seen since the first quarter of 2000. The market rally, due primarily to dovish statements from the Fed on the expected interest rate hike, also extended to Treasuries with the yield dropping below 2% to close at 1.93% on Friday. The dollar fell on the news however and took back some of the recent advances it had made against the Yen and Euro.


Looking Ahead:

Futures are lower this morning as the market looks to extend last week’s positive momentum. With much of last week’s trading predicated on statements from Fed Chair Yellen and the market’s reactions to those statements, focus now turns back to economic data and the upcoming earnings season. In her statements, Fed Chair Yellen made it clear that the Fed will be monitoring the economic landscape, namely inflation and unemployment, very closely to guide in the rate hike decision. Additionally, earnings season, which is fast approaching, will be crucial in understanding the extent that the strong dollar has affected US multinationals overseas. Treasuries and the dollar are slightly higher in overnight trading while oil prices are declining.


This Week’s Market Moving Events:

  • Monday: Existing Home Sales, Chicago Fed National Activity Index
  • Tuesday: Consumer Price Index, US Manufacturing PMI, New Home Sales
  • Wednesday: Durable Goods Orders
  • Thursday: Jobless Claims
  • Friday: GDP (Fourth Quarter 2014, 3rd Estimate), Univ. Michigan Consumer Sentiment Index

Don’t miss Money Matters with Gary Goldberg on Sunday at 11 AM on WOR 710 AM Radio for a more detailed discussion of the current economic, market environment and what investors should focus on now. Visit www.ggfs.com for details.

Mar 20

Equity markets were mixed in trading yesterday

3/19/15 Market Recap:

Equity markets were mixed in trading yesterday, a much quieter session than Wednesday’s FOMC sparked rally. The Dow and S&P declined for the day while the Russell 2000 and the Nasdaq saw slight gains. The dollar meanwhile rebounded against its major counterparts and contributed to underperformance in both energy and materials, laggards among the S&P sectors.

Watch our discussion on Fox Business from Thursday afternoon here: 

031915 FBN

(Click to watch)

Energy stocks were also dragged down by falling oil prices, negatively affected by record high inventories in the US. Healthcare was the only sector to close with gains for the day, rising .5%, thanks to the leadership of biotech companies.


Looking Ahead:

Futures are higher on this first day of Spring as the markets attempt to close this week on a positive note. Economic data is light for the day with a speech by Chicago Fed President Charles Evans being the lone highlight. The dollar is holding steady in overnight trading while oil prices are slipping once again. Treasuries are slightly higher with yields currently sitting at 1.95%.

Don’t miss Money Matters with Gary Goldberg on Sunday at 11 AM on WOR 710 AM Radio for a more detailed discussion of the current economic, market environment and what investors should focus on now. visit www.ggfs.com for details.

Mar 19

FOMC fueled a rally in the markets

3/18/15 Market Recap:

After hovering lower for most of the day, stocks moved sharply higher after dovish comments from Fed Chair Yellen and the FOMC. As expected, the committee removed the word “patient” in describing their readiness to increase rates, signaling a focus on economic conditions for making such a decision. To this end, the committee lowered several economic projections including GDP growth and inflation, giving some indication that the current economic environment does not yet warrant a hike in interest rates. All major averages rose as the DOW climbed over 227 points and the S&P 500 rose a similar 1.2%. Energy and utility stocks led the way, rising 2.9% and 2.7% respectively. The dovish FOMC statements also proved to be a boon for treasuries with the 10 year yield falling below 2% to close at 1.95%. The dollar, however, declined against the Euro and Yen.  


Looking Ahead:

Markets are mixed this morning, a day after comments made by Fed Chair Yellen and the FOMC fueled a rally in the markets. With the markets still undoubtedly digesting yesterday’s events, today’s economic releases including jobless claim and business outlook data from the Philly Fed should add to the economic picture that the FOMC is watching closely. Treasury yields have fallen again in overnight trading, albeit slightly, while the dollar is bouncing back against its major counterparts. 

Make sure to catch our Co-Portfolio Manager, Oliver Pursche, on Fox Business this afternoon at 4:00 PM when he discusses our take on the Fed comments and what investors should expect ahead of the forthcoming earnings season. And don’t miss Money Matters with Gary Goldberg this Sunday at 11:00 AM on WOR 710 AM Radio when Gary interviews William Browder, author of Red Notice. Visit www.ggfs.com for details.

Mar 18

Investors wait cautiously for today’s conclusion of the FOMC meeting

3/17/15 Market Recap:

Equity markets were mixed in yesterday’s trading as investors waited cautiously for today’s conclusion of the FOMC meeting. The Dow and S&P fell for the day, declining by .34% and .71% respectively, while the Russell 2000 and Nasdaq increased slightly. Increasing tech stocks also pushed the sector high yesterday, the only S&P sector to achieve that distinction. Economic data did little to push the markets forward with February housing starts falling significantly because of negative winter conditions. Oil prices also declined, albeit slightly, as oversupply concerns and record US production continue to put pressure on prices. Treasury prices moved higher however, pushing 10 year yield down below 2.06%.


Looking Ahead:

Stock futures are lower this morning ahead of what should be a day of clarity for a trading environment currently dominated by Fed speculation. The FOMC meeting, which will conclude today at 2 pm followed by a Fed Chair Yellen press conference at 2:30, is expected to give investors a better indication on when the Fed might look to raise rates and how quickly. To this end, many expect the Fed to lose the word “patient” in the description of their readiness, signaling an approach that gives the Fed greater flexibility based on economic data. However, regardless of whether today’s statements will point to a hike in June or September or even later than that, we believe that investors should also be focused on the upcoming earnings season, particularly for US multinationals which have been negatively affected by the recent surge of the US dollar. On the commodity front, oil prices are lower once again ahead of the EIA’s weekly petroleum inventory report. Finally, yields on 10 year Treasuries are below 2.05% as bond prices move higher.

Be sure to tune in to Money Matters with Gary Goldberg this Sunday at 11:00 AM on WOR 710 AM Radio to hear our latest economic analysis and market commentary.   Visit www.ggfs.com for details.

Mar 17

Markets shake off Friday’s losses ahead of Wednesday’s FOMC meeting

3/16/15 Market Recap:

Stocks rose sharply yesterday as the market shook off Friday’s losses ahead of Wednesday’s FOMC meeting and statement from Fed Chair Janet Yellen. With little surprise from the economic releases of the day, much of the day’s trading revolved around the dollar, which lost some of the gains it had recently made against it major counterparts, particularly the Euro. The S&P, Dow, and Nasdaq all registered gains greater than 1% for the day, with the S&P increasing by a session best 1.35%. Gains were broad among the S&P sectors as well with only the materials sector seeing declines for the day. Healthcare, the top performing sector year to date, led the way with an increase of 2.19%.  


Looking Ahead:

Markets are slightly lower this morning with most investors cautious ahead of the FOMC meeting, which begins today. Also on today’s docket is the release of housing starts data at 8:30 AM and earnings data from both Oracle (ORCL) and Adobe (ADBE). The dollar has continued to lose momentum overnight after falling against the euro yesterday while a gain in US Treasuries has pushed the 10 year yield down below 2.06% as of writing. 

Be sure to tune in to Money Matters with Gary Goldberg this Sunday at 11:00 AM on WOR 710 AM Radio to hear our latest economic analysis and market commentary.   Visit www.ggfs.com for details.

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