Aug 04

Overseas volatility could give U.S. investors pause

8/3/15 Market Recap: 

U.S. stocks fell on Monday, with cyclical sectors like industrials among the weakest of the day as renewed concerns about China pushed investors to drop the parts of the market that are most closely tied to the pace of global economic growth. China continued its recent equity weakness following some disappointing factory data, which raised fresh concerns about the impact China’s growth will have on U.S. corporate profits. Companies from Apple (AAPL) to Exxon Mobil (XOM) fell on China concerns; both have a lot of revenue exposure to the market.


Looking ahead: 

Futures were modestly lower on Tuesday, with investors still watching overseas markets. Shares in Shanghai rebounded sharply from their weakness on Monday, with a major index closing up almost 4 percent. In Greece, which continues to struggle with its debt crisis, shares fell for a second straight day. The overseas volatility could give U.S. investors pause, especially with few obvious catalysts that could push shares higher. The current earnings season has largely been disappointing, with profit growth minimal and revenue growth falling. Allstate (ALL) and Aflac (AFL) were both lower in premarket  following results released after the market closed on Monday, though Tenet Healthcare (THC) posted strong results after the bell. Make sure to tune into CNBC on Tuesday at 3:45 PM when our Co-Portfolio Manager, Oliver Pursche, will give our latest outlook and discuss why we remain cautiously optimistic.

And don’t miss this week’s Money Matters with Gary Goldberg, Sunday at 11 AM on WOR 710 AM Radio. Visit www.ggfs.com for more details.

Aug 03

Wall St quiet despite turmoil overseas

Market Recap 07/31/15:
 
U.S. stocks ended lower on Friday, with Energy shares among the biggest decliners of the day. The sector was also pressured by Exxon Mobil (XOM) and Chevron (CVX), two Dow components that reported disappointing quarterly results, with profits hit by declining oil prices. The two were the latest names this earning season to report tepid results. Earnings growth for the S&P 500 overall is seen up less than 1 percent this quarter, while revenue is seen down from the prior year. Despite the weakness on the day, major indexes closed out gains for both the week and the month of July on Friday.
 
Looking ahead:
 
Futures are flat as investors looked ahead to data on the manufacturing sector, which will be released after the market opens. Market participants are scouring each new economic release in the hope of finding clarity as to whether the U.S. Federal Reserve will raise interest rates in September or December, as the central bank has implied the first hike will come in 2015, though it is waiting for data to prove the economy is strong enough to withstand such a move. The slight action in futures came despite turmoil in overseas markets. Greece’s stock market reopened after being shut for several weeks and promptly fell more than 20 percent, despite a bailout deal being reached in principal for the country’s debt crisis. Any additional uncertainty surrounding the situation will give U.S. investors pause and perhaps a reason to sell, but as domestic companies have limited direct exposure to Greece, the selling may not transfer to Wall Street. In addition, China’s market fell in the wake of disappointing factory data. The country’s equity market has dropped sharply in recent weeks, with investors concerned about slowing growth. U.S. stocks in the Energy and Material space have been hit by these concerns, as slowing Chinese growth would mean less demand for commodities like oil and base metals. While those sectors could see some volatility on China on Monday, recent weakness in the overall U.S. market suggests the concerns have been priced into shares. Make sure to tune into CNBC on Tuesday at 3:45 PM when our President, Oliver Pursche, will give our latest outlook and discuss why we remain cautiously optimistic. And don’t miss this week’s Money Matters with Gary Goldberg, Sunday at 11 AM on WOR 710 AM Radio. Visit our website www.ggfs.comfor more details.

Jul 31

Weak earnings offset strong GDP report

Market Recap 07/30/15:
 
U.S. stocks ended flat on Thursday, with a number of high-profile names – including Procter & Gamble (PG) and Facebook (FB) – dropping after disappointing quarterly results. While a read on economic growth came in above expectations, some investors viewed that data cautiously, as the Federal Reserve has indicated it will raise rates when economic data suggests the economy is strong enough to withstand a rate hike. Comments from the central bank earlier this week reiterated that an increase could come this year – though investors are split on whether September or December is more likely. With earnings growth tepid and Chinese growth still a concern, investors are finding few reasons to keep pushing shares higher.
 
Looking ahead:
 
Futures are flat on Friday, though major indexes look to end a volatile month with gains. The Energy sector will be in view, with earnings set from both Exxon Mobil (XOM) and Chevron (CVX). While the two Dow components could see a hit from lower oil prices, both firms are diversified energy plays, meaning the impact won’t be as pronounced as in other names in the space. Expedia (EXPE) share are up in premarket; the online travel agency reported strong earnings after the market closed on Thursday. On the economic data front, the final July reading of the University of Michigan’s index on consumer sentiment will be released after the market open. Make sure you don’t miss this week’s Money Matters with Gary Goldberg, Sunday at 11 AM on WOR 710 AM Radio. Visit our website www.ggfs.com for more details.

Jul 30

The Fed acknowledges improvement in domestic economy

7/29/15 Market Recap: 

U.S. stocks rose on Wednesday, boosted after the Federal Reserve acknowledged improvement in the domestic economy but held off on raising interest rates. While many investors still expect the central bank’s first rate hike in about 10 years to come in 2015, the comments indicated that the Fed was willing to remain accommodative amid some potential market headwinds. Market participants are still closely watching the volatile Chinese market, which have dropped sharply in recent days, underlining concerns about the pace of global growth and the demand for commodities like oil and base metals. Separately, the second-quarter earnings season has contained some disappointments, with revenue down almost 4 percent from the year-ago period. However, there have been some bright spots, with General Dynamics (GD) rallying after its results on Wednesday. The session’s gains were broad, with all ten primary S&P 500 sectors higher on the day.


Looking Ahead: 

Futures are little changed on Thursday, with investors looking ahead to a read on second-quarter economic growth to add further context to the Fed’s comments on the economy from Wednesday. A couple of high-profile names could pressure the market, with both Facebook (FB) and Whole Foods Market (WFM) down after results that were reported after the market closed on Wednesday. Whole Foods dropped sharply as its earnings missed expectations. While Facebook’s profit was higher than anticipated, the growth was not seen as strong enough to justify the social media giant’s valuation following a year-to-date gain of more than 20 percent. Cigna (CI) and Time Warner Cable (TWC) are among the companies reporting on Thursday. On the economic data front, both the GDP data and weekly jobless claims will be released before the bell.

Make sure you don’t miss this week’s Money Matters with Gary Goldberg, Sunday at 11 AM on WOR 710 AM Radio. Visit www.ggfs.com for more details.

Jul 29

Futures are modestly higher

7/28/15 Market Recap: 

U.S. stocks rose sharply on Tuesday, rebounding from the previous session’s sharp decline as some strong corporate results offset ongoing concerns over the pace of economic growth in China. While Shanghai’s primary equity index fell, extending its decline on Monday – which had been the single worst session for the index in several years – the decline was relatively muted. While China is expected to remain volatile – which could mean large swings in Energy shares and commodity prices as the country’s growth is heavily tied to global demand – some bullish news from corporate America lifted sentiment. Ford Motor Co (F) reported stronger-than-expected earnings growth, helped by a rebound in the automaker’s U.S. division, while Dow component Pfizer (PFE) lifted its full-year outlook. In the latest economic data, U.S. consumer confidence fell more than expected in July, while home prices rose a robust 4.4 percent in May.


Looking Ahead: 

Futures are modestly higher, but trading could be quiet until the end of the Federal Reserve’s two-day meeting Wednesday afternoon. In a statement, the U.S. central bank will announce a decision on interest rates, and while the Fed isn’t seen raising rates at this meeting, it is widely expected to at some point in 2015. The Fed statement will be closely scrutinized for any indication about whether the rate hike will come in September or December. Overseas, a rally in Chinese shares could ease some near-term anxiety about the region, though ongoing volatility there could result in in big price swings here. Pending home sales are scheduled for release on Wednesday, while on the earnings front, Cliffs Natural Resources (CLF) and Mastercard (MA) are among the companies reporting.

Make sure to tune into Fox Business this Thursday at 6 PM when our President, Oliver Pursche, joins Charles Payne during the 6 o’clock hour to give our latest outlook and discusses why, in spite of the recent negative market action, we remain cautiously optimistic. And don’t miss this week’s Money Matters with Gary Goldberg, Sunday at 11 AM on WOR 710 AM Radio. Visit www.ggfs.com for more details

Jul 28

Pressure by massive selloff in the Chinese market

7/27/15 Market Recap:

U.S. stocks fell sharply in Monday’s session, pressured by a massive selloff in the Chinese market that raised new concerns about the pace of global growth and whether China’s slowing economy would have a pronounced impact on corporate earnings and revenue growth domestically. China’s primary stocks index fell more than 8 percent on the day, its biggest one-day drop in eight years. While the country’s top regulator said Beijing would continue previously announced plans to stabilize the market, investors sold riskier assets like stocks in masse. The day’s losses were broad but led by the Energy sector, with traders anticipating that China’s weakness would result in lower demand for commodities. A rare bright spot in the market came from Teva Pharmaceuticals (TEVA), which agreed to buy Allergan’s generic drug business for $40.5 billion.


Looking Ahead:

Futures are modestly higher on Tuesday in a rebound from the previous session’s decline, though the situation in China will continue to be closely monitored. The losses there continued, with the main Shanghai index extending Monday’s selloff by dropping 1.7 percent, but the recent volatility on Wall Street could mean that the bulk of the current situation has been priced into shares. Investors are also looking ahead to a two-day meeting by the U.S. Federal Reserve, which begins Tuesday and ends Wednesday, when the central bank will announce a decision on interest rates. While the Fed isn’t expected to raise rates this week, it could give further insight into whether an increase will come in September or December, as it is widely expected to hike rates in 2015. On the earnings front, Ford (F), United Parcel Services (UPS) and Jetblue Airways (JBLU) are all set to report, as is Dow component Pfizer (PFE). On the economic data front, the Case-Shiller index on home prices will be released before the market opens, while a read on July consumer confidence will come out after the open. Make sure to tune into Fox Business this Thursday at 6 PM when our President, Oliver Pursche, joins Charles Payne during the 6 o’clock hour to give our latest outlook and discusses why, in spite of the recent negative market action, we remain cautiously optimistic. And don’t miss this week’s Money Matters with Gary Goldberg, Sunday at 11 AM on WOR 710 AM Radio. Visit www.ggfs.com for more details.

Jul 27

Weak results add concerns regarding strength of the global economy

7/24/15 Market Recap:

U.S. stock indexes ended their worst week since March with further losses on Friday, pressured by the latest in a series of weaker-than-expected earnings as well as signs of slowing global growth. Biogen Idec (BIIB) shares plummeted after the biotechnology giant cut its revenue growth forecast for 2015 by more than half, an outlook that weighed on the overall biotech sector. While more companies than usual have been topping earnings expectations thus far this quarter, including some big names like Amazon.com (AMZN) and Visa (V), revenue growth has been weak, and Biogen follows Apple (AAPL) and Microsoft (MSFT) as a bellwether name to disappoint. The weak results have added to concerns about the strength of the global economy, with some tepid data from both China and the euro zone adding to these fears on Friday. Energy and Material shares were especially weak at the close of last week, with investors concerned that weak grow would decrease demand for commodities like oil and copper.


Looking Ahead:

Futures are lower on Monday, with investors still taking their cue from overseas markets. Chinese equities plummeted, with the Shanghai Composite Index down more than 8 percent on the day, the biggest one-day drop since 2007. Such weakness suggests equities markets will remain volatile, and that recent moves by Beijing to shore up its markets may be inadequate. The uncertainty will have an outsized impact on U.S. commodity names, which could decline on any further hint of weakening global demand. Large-cap names in general, which have more direct revenue exposure to overseas markets than their smaller peers, could also see weakness. Investors also continue to study second-quarter earnings results, which have included some high-profile disappointments, raising concerns about U.S. growth and market valuation. Norfolk Southern (NSC) and Plum Creek Timber (PCL) are among the names set to report on Monday. On the economic data front, June durable goods will be released before the market open.  Make sure to tune into Fox Business this Thursday at 6 PM when our President, Oliver Pursche, joins Charles Payne during the 6 o’clock hour to give our latest outlook and discusses why, in spite of the recent negative market action, we remain cautiously optimistic. And don’t miss this week’s Money Matters with Gary Goldberg, Sunday at 11 AM on WOR 710 AM Radio. Visit www.ggfs.com for more details.

Jul 24

Futures Are Moving Higher

Market Recap 7/23/15:

Stocks went lower for the third consecutive day, pressured once again by earnings from a select group of big name companies. In a pattern that has plagued the markets since Tuesday, investors chose to focus on the disappointing results from Caterpillar (CAT), American Express (AXP), and 3M (MMM). At the end of the session, the Dow, S&P, and NASDAQ all closed with losses greater than half a percent while the Russell 2000 fell by 1.06%. Losses were similarly broad-based among the S&P sectors with all 10 registering declines on the day. The country’s employment picture meanwhile gave another indication of its growing momentum after weekly jobless claims fell to 255k, its lowest mark since 1973. Though economists have cautioned that July data can be volatile, it’s clear that the continuing improvement in employment adds to the reasonable belief that there could be an interest rate hike in the near future. However, though interest rate hike speculation has been a theme in the past few months, the current focus has clearly been on earnings and the lack of year over year revenue growth being exhibited.

Looking Ahead:

Futures are moving higher ahead of today’s session as the market looks to break its three day decline and finish the week on a positive note. Amazon (AMZN) is providing a boost to sentiment this morning after beating expectations and posting a positive profit number for the quarter. The tech giant, which routinely posts negative earnings because of their commitment to long term investment over short term profit, grew year over year sales by 20% thanks to strong sales growth in North America and a burgeoning cloud services platform. Amazon is up over 20% in pre-market trading. Abbvie (ABBV), American Airlines (AAL), and Xerox (XRX) meanwhile are part of a slew of companies reporting earnings this morning as we close out this heavy earnings week. Aside from earnings reports, which dominated trading so far this week, manufacturing data is expected followed by new home sales data at 10am. 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 Rich Karlgaard, author of the book “Team Genius.”   Visit www.ggfs.com for details.

Jul 23

Markets look to break its two day losing streak

7/21/15 Market Recap:

Stocks fell in yesterday’s session, its second consecutive day of declines, as disappointing earnings once again put pressure on the broader markets. Just like mixed news from IBM (IBM) and United Technologies (UTX) drove the action in Tuesday’s trading, Wednesday’s trading was dominated by negative sentiment regarding earnings releases by Apple (AAPL) and Microsoft (MSFT), which declined by 4.2% and 3.7% respectively. For Apple, which beat expectations on the top and bottom line, the main source of disappointment came from iPhone sales that missed analyst estimates despite growing 35% year over year. Microsoft, on the other hand, fell after a markdown of its Nokia acquisition led to the biggest quarterly loss in the tech giant’s history. Declines in these two companies pushed the tech stocks lower by 1.6%, the weakest performer of the ten S&P sectors. Among the averages, the Russell 2000 led, rising slightly on the day, while the Dow, S&P, and Nasdaq all ended in the red.


Looking Ahead:

Futures are moving slightly higher ahead of today’s session as the markets look to snap its two day losing streak. This morning, investors are digesting news out of Greece that the Greek Parliament had passed a second set of reforms needed to secure a third bailout. On the domestic front meanwhile, Anthem (ANTM) is reportedly nearing a deal to acquire Cigna (CI) in a move that would represent further consolidation among the country’s top health insurers.  In addition to these overnight news items, numerous earnings reports should also affect today’s trading, as they have all week. Economic data for the day is on the lighter side with just the jobless claims expected. Econ data, however, was recently overshadowed by earnings news, as evidenced by yesterday’s existing multi-year high existing home sales data, which did little to influence market sentiment. 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 Rich Karlgaard, author of the book “Team Genius.” Visit www.ggfs.com for details.

Jul 22

Tech giants performance show negative results

7/21/15 Market Recap:

Markets fell in yesterday’s session, negatively affected by disappointing earnings from big names like IBM (IBM) and United Technologies (UTX). IBM, the second largest component of the Dow 30 by weight, fell almost 6% despite beating earnings expectations after missing on the top line. Though IBM saw gains in the company’s cloud computing line, a key segment for the tech giant going forward, declines in system hardware and software led to a 13% decrease in revenues year over year. United Technologies meanwhile fell by seven percent after forecasting that the company would miss full year 2015 earnings expectations because of falling demand in overseas markets for its aerospace and elevator business units. For the quarter, sales decreased by 5% year over year while the bottom-line declined by 8%. The company did however, make a commitment to drive growth through share buybacks, M&A, and cost cutting initiatives. However, the damage was done with investors focusing on the ramifications of the downgraded forecast. The negative performance from IBM and UTX primarily affected the Dow with the blue chip index lagging the major averages with a decline of 1% on the session. Losses were also broad based among the S&P sectors with only the energy sector managing a meager increase on the day.


Looking Ahead:

Futures are falling ahead of today’s session, pressured by negative sentiment regarding earnings releases from both Apple (AAPL) and Microsoft (MSFT). Apple is tumbling near 7% percent this morning, despite beating revenue and earnings expectations, after iPhone sales fell short in the quarter. iPhone sales, which accounted for more than 60% of the tech giant’s revenues in the quarter, increased a whopping 35% to 47.5 million but still fell below the 48.8 million that the street was expecting. Meanwhile, Microsoft posted its largest loss ever after a $7.6 billion markdown of Nokia, a company it purchased for $9 billion only two years earlier. The marked slowdown of global pc sales is also affecting the company with sales of its Windows software to computer manufacturers falling by 22%. The stock is down over 3% ahead of the session. Investors will have more earnings to digest today including Coca Cola (KO) and Boeing (BA) along with the release of the June existing home sales report as the market looks for further direction in today’s trading. 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 www.ggfs.com for details.

Older posts «