Apr 24

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

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 www.ggfs.com for details.

Apr 22

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 www.ggfs.com for details.

Apr 21

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

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 www.ggfs.com for details.

Apr 17

Investors have a strong slate of corporate earnings

4/16/15 Market Recap:

Markets moved marginally lower yesterday, on a day where most of the major averages didn’t stray too far above or below the neutral line. A batch of positive earnings beats from the likes of Goldman Sachs (GS), American Express (AXP), and Citigroup (C) conflicted with disappointing March housing starts and weekly jobless claims data and resulted in a directionless market. In the end, a rally in the early afternoon fizzled with the S&P, Dow, and Nasdaq all closing with declines below .1%. The Russell fared slightly worse, closing down .2%. Seven of the ten S&P sectors decreased for the day with utilities pacing the decline. Consumer Discretionary, Financials, and Consumer Staples were able to avoid the red however, with the latter increasing by .4%. The Treasuries continued its recent rally, gaining for the fifth consecutive day as 10 year yields fell to 1.87%. Finally, the dollar weakened against the yen and the euro.


Looking Ahead:

Equity futures are pointing to a lower open on this last trading day of the week. Investors have a strong slate of corporate earnings to digest today with releases from General Electric (GE), Reynolds American (RAI), and Honeywell (HON). Along with earnings, March consumer price index and consumer sentiment data are expected in the first few hours of the trading day. CPI data, in particular, should not be overlooked because the Fed has reiterated time and time again the importance of inflation when it comes to future Fed policy. In overnight trading, 10 year yields have fallen slightly as Treasuries continue its march upwards while the dollar is losing some ground against its 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.  This week, Gary’s guest is Jack Welch, former CEO of General Electric, to discuss his new book “The Real Life MBA.”   Visit www.ggfs.com for details.

Apr 14

Investors receive a slew of inflation data this morning

Market Recap:

Trading was relatively calm on Monday as stocks slowly slid about ½% ahead of key earnings reports from banks and rail companies on Tuesday. The US dollar gained against major currencies, while Oil, Gold and other major commodities all fell, as did Treasury Yields. There was no meaningful economic data reported, which largely explains the dull day on Wall Street.


Looking Ahead:

JP Morgan, Wells Fargo, Intel, and CSX Corp are among some widely held stocks reporting earnings today. Additionally investors will receive a slew of inflation data via Producer Prices and Retail Sales data this morning. Overnight, Europe reported much stronger than forecast Industrial Production data, which was shown to grow 1.6% year-over-year (double the forecast) and a strong 1.1% month-over-month (nearly triple the forecast). The healthier signs from the European economy are lifting hopes that the worst is over for the “old” world. Consequently, market prognosticators are sure to take the stronger than expected data to reignite the debate over the timing of the Fed’s first interest rate hike. Later today, after the market close, China will release its GDP, Industrial Production and Retail Sales data.

Make sure to tune into 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.

Apr 13

This Week’s Market Moving Events

Market Recap:

Stocks rose on Friday as General Electric gave investors a surprising boost by announcing it would divest itself from its long beleaguered GE Capital unit and that the company would buy-back $50 billion of its own stock. GE stock rose more than 10% on the news, sparking a broad based rally, which was further supported by lessening worries that the Fed would raise rates sooner rather than later. The dollar strengthened against major currencies, while Treasury prices fell slightly. Commodities were generally stronger, as Oil gained more than 1 ½% after Baker Hughes announced more oil-rig and well operation suspensions than expected.


Looking Ahead:

The week ahead will provide investors plenty of data to review and fret over, as earnings season kicks into high gear and key economic data is released. On the earnings front, key reports from the technology and banking sector including releases from Intel (INTC), Netflix (NFLX), JP Morgan Chase (JPM) and Wells Fargo (WFC). In our view, the earnings calls will be much more important to market participants than the actual reports – see our discussion on CNBC here: Separately, key economic data from Europe and China are sure to sway markets as well.

041015 CNBC


This Week’s Market Moving Events:

  • Monday: Not much being reported
  • Tuesday: Eurozone Industrial Production, US Producer Prices, Small Business Optimism Index, Business Inventories, Chinese GDP. CSX Corp (CSX), Intel (INTC), Johnson & Johnson (JNJ), Wells Fargo (WFC), JP Morgan Chase (JPM) report
  • Wednesday: ECB Announcement, US Industrial Production, Housing data. Delta Airlines (DAL) and Netflix (NFLX) report
  • Thursday: Jobless Claims, Housing Starts, Philly Fed Business Outlook Survey. American Express (AXP), Citigroup (C), and Phillip Morris (PM) report
  • Friday: Consumer Prices and Sentiment. Eurozone Consumer Prices. General Electric (GE) reports.

Apr 10

Markets attempt to close this week of trading on a solid note

04/09/15 Market Recap:

Equities were mainly higher in yesterday’s session, despite being range bound for most of the day. According to traders, much of yesterday’s action seemed to be a continuation of Wednesday’s choppy market activity with investors still digesting rate hike comments from the Fed. Trading activity was also subdued as investors wait for first quarter earnings releases to ramp up over the next few weeks. Economic data for the day was mixed with jobless claims remaining under 300k despite increasing week over week but inventories rising more than expected. The Nasdaq, Dow, and S&P all notched gains for the day with the Nasdaq increasing by half a percent. Small cap stocks struggled however causing the Russell 2000 to fall by .3%. Energy stocks led the way, as it did on Tuesday, gaining 1.5% thanks to rising oil prices. Gains were broad based among the sectors with only Utilities and Telecom declining.  10 year treasury yields reached monthly highs as prices fell while the dollar continued to gain against the yen and euro.


Looking Ahead:

Stock futures are rising higher this morning as the markets attempts to close this week of trading on a solid note. Though trading has been markedly choppy, it has been positive so far for the averages with the Nasdaq, S&P, and Dow all higher by over a percent. Fed speculation captivated the markets once again with investors parsing Fed comments for clues regarding the next Fed hike. Such might be the case again today with Richmond Fed President Jeffrey Lacker speaking this morning. Lacker, considered by many to be one of the more hawkish members of the committee, previously said that there is a “strong” case for a rate hike as early as June. In corporate news, General Electric announced that the company would sell a majority of its real estate portfolio within two years and focus on its core industrial business. This move is driving GE higher, with the stock up over 8% pre-market. Apple is also in the spotlight today as the tech giant kicked off preorder sales of its all new Apple Watch offering. However, the hoopla around the new wearable hasn’t reached the same heights as other Apple product launches. Finally, treasuries have barely moved in overnight trading while the dollar continues to move higher 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.  This week, Gary’s guest is Spencer Rascoff, CEO of Zillow.  And make sure to catch our Co-Portfolio Manager, Oliver Pursche, on CNBC this Friday at 3:45 PM live from the floor of the New York Stock Exchange. Visit www.ggfs.com for details.

Apr 09

Stocks close the day higher despite rocky trading session

4/8/15 Market Recap:

Stocks were able to close the day higher yesterday, despite a rocky trading session. Though it did not move the needle in a significant fashion, investors seemed to be pleased with the minutes of the latest Federal Reserve meeting which showed a committee divided on the timing of the first interest rate hike. According to the published minutes, several members are advocating for a raise in the near term while some say that a hike later this year or even 2016 would be more beneficial. It is clear that conflicting economic data regarding the strength of the economic recovery and probable first quarter weakness is weighing on the committee members. Among the averages, the Nasdaq and Russell 2000 showed leadership, rising by .83% and .75% respectively. Most of the sectors also notched gains with consumer discretionary and health care leading. Energy, which led all sectors on Tuesday, fell by over 1% on a larger than expected increase of crude supplies. The dollar rose against the yen and euro while Treasuries ticked down slightly.


Looking Ahead:

Equity futures are lower this morning as investors gear up for the crucial first quarter earnings season. Alcoa’s (AA) earnings release yesterday, which unofficially marks the season’s beginning, was mixed with the company reporting a miss on the top line but beating earning expectations. Alcoa however, reaffirmed 2015 growth expectations thanks to rising global demand in aluminum. Economic data is light for the day with jobless claims being released at 8:30 followed by inventories at 10am. Though jobless claims are expected to rise this week, claims have recently fallen below the key 300k threshold which supports the trend of a strengthening labor market. The dollar is gaining against its major counterparts while Treasuries are declining.

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.  This week, Gary’s guest is Spencer Rascoff, CEO of Zillow.  And make sure to catch our Co-Portfolio Manager, Oliver Pursche, on CNBC this Friday at 3:45 PM live from the floor of the New York Stock Exchange. Visit our website www.ggfs.com for details.

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