Believe it or not, we're 3/4 through the year and with that Wall Street staged a rally Friday just to keep with the notion that the economy is at least strong enough (and well enough supported by the Federal Reserve) to warrant the buying of stocks with which to dress up tha many portfolios managed by multi-billion dollar funds.
Friday's economic data included numbers on personal income (up 0.2%), personal spending (flat... oops), core PCE prices (up 0.2%), Chicago PMI (54.2, ahead of forecasts) and the University of Michigan survey on consumer sentiment (91.2).
All right, then, everybody's content, including the Fed, which did not raise rates and won't until Decemebr at the earliest, if at all.
In this sweet spot economy, it's a numbers game and a day-trader's paradise. There's really no serious investment going on, just reshuffling of the deck of S&P 500 stocks to own.
The week was essentially flat, marginally to the upside, as the major averages just bounced between winning and losing all week long.
As Country Joe and the Fish might have said, "Whoopie! We're all gonna die."
Friday's Flash:
Dow Jones Industrial Average
18,308.15, +164.70 (0.91%)
NASDAQ
5,312.00, +42.85 (0.81%)
S&P 500
2,168.27, +17.14 (0.80%)
NYSE Composite
10,721.74, +78.22 (0.73%)
For the Week ended September 30:
Dow: +46.70 (+0.26%)
NASDAQ: +6.25 (+0.12%)
S&P 500: +3.58 (+0.17%)
NYSE Composite: +3.75 (+0.03%)
Showing posts with label consumer sentiment. Show all posts
Showing posts with label consumer sentiment. Show all posts
Sunday, October 2, 2016
Friday, September 13, 2013
Retail Sales Miss, Consumer Sentiment Negative, Stocks Move Higher
Well, that's what happens when computers are doing 80% of the trading, of which there isn't much, anyway.
Prior to the market open - giving the insiders plenty of time torig set their positions, retail sales for August were reported to have risen 0.2% (in some alternate universe) on expectations of a gain of 0.5% (in an even more bizarre universe).
Stocks took a bit of a dip at the open, but were revived when University of Michigan's September consumer sentiment registered a 76.8, on expectations of 81, after showing 82.1 in August. It was the biggest miss in the history of the survey and the lowest reading in five months.
Naturally, stocks recovered and the Dow quickly shot up to about a 70-point gain and stayed their the rest of the session.
It was one of the best weeks of recent memory for the indices. The Dow gained 453 points for the week, while the S&P was up almost two percent, posting a gain of 32.82 points. The NASDAQ was the laggard, up 62.17 or 1.70%.
All of this makes perfect sense when one understands that the average stock position is held for something like seven seconds and that volume was so low today that it scarcely registered.
Then again, Twitter tweeted that it had filed papers for an IPO. The initial valuation is rumored to be around $10 billion, but, Twitter, as far as can be surmised, is not a profitable enterprise. Shades of the dotcom bubble.
Seems there's still some summer remaining at the Hamptons.
Dow 15,376.06, +75.42 (0.49%)
Nasdaq 3,722.18, +6.22 (0.17%)
S&P 500 1,687.99, +4.57 (0.27%)
10-Yr Bond 2.90%, -0.01
NYSE Volume 2,931,141,750
Nasdaq Volume 1,421,610,875
Combined NYSE & NASDAQ Advance - Decline: 3975-2516
Combined NYSE & NASDAQ New highs - New lows: 175-75
WTI crude oil: 108.21, -0.39
Gold: 1,308.60, -22.00
Silver: 21.72, 0.429
Prior to the market open - giving the insiders plenty of time to
Stocks took a bit of a dip at the open, but were revived when University of Michigan's September consumer sentiment registered a 76.8, on expectations of 81, after showing 82.1 in August. It was the biggest miss in the history of the survey and the lowest reading in five months.
Naturally, stocks recovered and the Dow quickly shot up to about a 70-point gain and stayed their the rest of the session.
It was one of the best weeks of recent memory for the indices. The Dow gained 453 points for the week, while the S&P was up almost two percent, posting a gain of 32.82 points. The NASDAQ was the laggard, up 62.17 or 1.70%.
All of this makes perfect sense when one understands that the average stock position is held for something like seven seconds and that volume was so low today that it scarcely registered.
Then again, Twitter tweeted that it had filed papers for an IPO. The initial valuation is rumored to be around $10 billion, but, Twitter, as far as can be surmised, is not a profitable enterprise. Shades of the dotcom bubble.
Seems there's still some summer remaining at the Hamptons.
Dow 15,376.06, +75.42 (0.49%)
Nasdaq 3,722.18, +6.22 (0.17%)
S&P 500 1,687.99, +4.57 (0.27%)
10-Yr Bond 2.90%, -0.01
NYSE Volume 2,931,141,750
Nasdaq Volume 1,421,610,875
Combined NYSE & NASDAQ Advance - Decline: 3975-2516
Combined NYSE & NASDAQ New highs - New lows: 175-75
WTI crude oil: 108.21, -0.39
Gold: 1,308.60, -22.00
Silver: 21.72, 0.429
Friday, May 17, 2013
Stocks End Week on Super-Duper High Note as All Indicators Are Ignored
Other than options expiry, there was no good reason for stocks to go higher today, though this market doesn't need any reasons or rationale for any kind of movement. So, it was not surprising that, on a day in which the only relevant data came from the University of Michigan consumer sentiment and the Conference Board's Index of Leading Economic Indicators - incidentally, the only two data points that were positive this week - that stocks would rise to new all-time highs on the Dow and S&P, while the NASDAQ continued its recent string of 12 1/2-year-highs.
Consumer sentiment catapulted from April's 76.4 to 83.7 in May, while the LEI came in with a gain for April of 0.6% on expectations of 0.3, after March's disappointing -0.2%, not that the prior reading mattered at all.
Stocks are raging, and to those who have invested and made money, congratulations. For those who have stayed on the sidelines, this is surely not an opportune time to invest, despite what all the financial pundits are saying, unless one believes it is wise to buy at all-time highs.
So ends another week in fantasy-land, aka, Wall Street.
Gold and silver were again taken out back and punished severely, but - big surprise - crude oil continued to march toward the $100/barrel level.
Happy motoring!
Dow 15,354.40, +121.18 (0.80%)
NASDAQ 3,498.97, +33.72 (0.97%)
S&P 500 1,667.47, +17.00 (1.03%)
NYSE Composite 9,576.41, +87.10 (0.92%)
NASDAQ Volume 1,820,408,750
NYSE Volume 3,736,158,250
Combined NYSE & NASDAQ Advance - Decline: 4518-1925
Combined NYSE & NASDAQ New highs - New lows: 703-45
WTI crude oil: 96.02, +0.86
Gold: 1,364.70, -22.20
Silver: 22.35, +0.307
Consumer sentiment catapulted from April's 76.4 to 83.7 in May, while the LEI came in with a gain for April of 0.6% on expectations of 0.3, after March's disappointing -0.2%, not that the prior reading mattered at all.
Stocks are raging, and to those who have invested and made money, congratulations. For those who have stayed on the sidelines, this is surely not an opportune time to invest, despite what all the financial pundits are saying, unless one believes it is wise to buy at all-time highs.
So ends another week in fantasy-land, aka, Wall Street.
Gold and silver were again taken out back and punished severely, but - big surprise - crude oil continued to march toward the $100/barrel level.
Happy motoring!
Dow 15,354.40, +121.18 (0.80%)
NASDAQ 3,498.97, +33.72 (0.97%)
S&P 500 1,667.47, +17.00 (1.03%)
NYSE Composite 9,576.41, +87.10 (0.92%)
NASDAQ Volume 1,820,408,750
NYSE Volume 3,736,158,250
Combined NYSE & NASDAQ Advance - Decline: 4518-1925
Combined NYSE & NASDAQ New highs - New lows: 703-45
WTI crude oil: 96.02, +0.86
Gold: 1,364.70, -22.20
Silver: 22.35, +0.307
Friday, August 12, 2011
Stocks Close Green, but Well Off Highs of Day, Down for Week
One of the wildest weeks in US stock market history came to a rather anti-climactic close on Friday, with modest gains on all of the major indices, though the close was well off the highs of the session.
The Dow was the biggest winner of the day in percentage terms, suggesting that money is being plowed into the global behemoths for their international reach and dividend yields, but the week-ending rally was well short of spectacular and the Dow ended the day close to the middle of the range after it had been up 203 points at the high.
The S&P 500 had been as high as 1189 before losing more than half its gains through the afternoon. So too, the NASDAQ, which was up as much as 32 points before surrendering much of those gains as the day wore on.
For the week, all the major averages were lower. The Dow gave up 175 points over the roller coaster week; the NASDAQ lost 25 points, or about one percent, and the S&P shed 20 points, closer to 2%.
It was the third straight week of losses for the major averages, though hardly as bad as it could have been, measured by the lows set in place on Wednesday. The troubling characteristics of the week's trading were extreme volatility, high volume and the uncanny ability - in the near future - for indices to retest lows before making decisive moves.
With Europe still unresolved and US problems probably put away for a while with the start of preseason football, Friday turned out to be a day of celebration, not for the gains of the session, but for the fact that markets did not continue to slide as the week wore on and out.
Another troubling aspect was the 10:00 am reading from the University of Michigan's survey of consumer sentiment, which plunged to an 31-year low of 54.9, after a reading of 63.7 in July.
On the other hand, retail sales posted positive gains for July according to the Department of Commerce, though their readings and estimates have proven in the past to be more hot air than fact.
Not to hose down anyone's equity parade, but the global economy is still rather shaky, and unless long-term, structural problems with debt and the global currencies themselves are addressed, we are sure to repeat this kind of market behavior and sluggish economic growth. As it is, it's been nearly three years since the collapse of Lehman Brothers and the world is hardly a better place. Investments have become short term holdings, while real money has gravitated to bonds, gold or hard assets.
Dow 11,269.02, +125.71 (1.13%)
NASDAQ 2,507.98, +15.30 (0.61%)
S&P 500 1,178.81, +6.17 (0.53%)
NYSE Composite 7,303.88, +46.30 (0.64%)
Advancing issues topped decliners, though the margin was slight, 3965-2678. New highs on the NASDAQ numbered just four (4), with 60 new lows. On the NYSE, there were only seven (7) new highs and 24 new lows. The combined total of 11 new highs and 84 new lows - low numbers on both sides - suggests exactly what the market shows, that we are in a mid-range between a rally and collapse, with a bias to the negative.
Volume dropped off substantially, as traders were worn out and some caution and reason was applied to today's trading.
NASDAQ Volume 2,222,537,500
NYSE Volume 5,581,791,000
Commodities were sluggish. Oil fell 34 cents, to $85.38. Gold dipped $8.90, ending the week at $1,742.60, while silver speculators snapped back at onerous margin requirements, gaining 45 cents, to $39.11.
At the end, it was a smooth finish, but hardly inspiring to the bulls. After all, this is a three-week skid and the major markets are still bound between correction (-10%) and a bear market (-20%). It will likely take more than a few good days of trading to come to some understanding of future direction.
The Dow was the biggest winner of the day in percentage terms, suggesting that money is being plowed into the global behemoths for their international reach and dividend yields, but the week-ending rally was well short of spectacular and the Dow ended the day close to the middle of the range after it had been up 203 points at the high.
The S&P 500 had been as high as 1189 before losing more than half its gains through the afternoon. So too, the NASDAQ, which was up as much as 32 points before surrendering much of those gains as the day wore on.
For the week, all the major averages were lower. The Dow gave up 175 points over the roller coaster week; the NASDAQ lost 25 points, or about one percent, and the S&P shed 20 points, closer to 2%.
It was the third straight week of losses for the major averages, though hardly as bad as it could have been, measured by the lows set in place on Wednesday. The troubling characteristics of the week's trading were extreme volatility, high volume and the uncanny ability - in the near future - for indices to retest lows before making decisive moves.
With Europe still unresolved and US problems probably put away for a while with the start of preseason football, Friday turned out to be a day of celebration, not for the gains of the session, but for the fact that markets did not continue to slide as the week wore on and out.
Another troubling aspect was the 10:00 am reading from the University of Michigan's survey of consumer sentiment, which plunged to an 31-year low of 54.9, after a reading of 63.7 in July.
On the other hand, retail sales posted positive gains for July according to the Department of Commerce, though their readings and estimates have proven in the past to be more hot air than fact.
Not to hose down anyone's equity parade, but the global economy is still rather shaky, and unless long-term, structural problems with debt and the global currencies themselves are addressed, we are sure to repeat this kind of market behavior and sluggish economic growth. As it is, it's been nearly three years since the collapse of Lehman Brothers and the world is hardly a better place. Investments have become short term holdings, while real money has gravitated to bonds, gold or hard assets.
Dow 11,269.02, +125.71 (1.13%)
NASDAQ 2,507.98, +15.30 (0.61%)
S&P 500 1,178.81, +6.17 (0.53%)
NYSE Composite 7,303.88, +46.30 (0.64%)
Advancing issues topped decliners, though the margin was slight, 3965-2678. New highs on the NASDAQ numbered just four (4), with 60 new lows. On the NYSE, there were only seven (7) new highs and 24 new lows. The combined total of 11 new highs and 84 new lows - low numbers on both sides - suggests exactly what the market shows, that we are in a mid-range between a rally and collapse, with a bias to the negative.
Volume dropped off substantially, as traders were worn out and some caution and reason was applied to today's trading.
NASDAQ Volume 2,222,537,500
NYSE Volume 5,581,791,000
Commodities were sluggish. Oil fell 34 cents, to $85.38. Gold dipped $8.90, ending the week at $1,742.60, while silver speculators snapped back at onerous margin requirements, gaining 45 cents, to $39.11.
At the end, it was a smooth finish, but hardly inspiring to the bulls. After all, this is a three-week skid and the major markets are still bound between correction (-10%) and a bear market (-20%). It will likely take more than a few good days of trading to come to some understanding of future direction.
Friday, February 26, 2010
Thin Trading, Stocks Higher
Despite another sour report on Existing Home Sales for January - off 7.2% - investors and speculators bid up stocks slightly on the final trading day of February.
Following the release of the housing data at 10:00 am, stocks sank to their lows of the day, but, as has been the case recently, the not-quite-invisible hand of the PPT or other erstwhile stock manipulators pushed the index to its high of the day in less than 30 minutes, a move of roughly 75 points on the Dow.
After that initial burst of despair and excitement, stocks vacillated just above the unchanged mark for the remainder of a lackluster session, one with even lower trading volume than normal due to severe winter storms in the Northeast. Also, just moments before the closing bell, word that a 7.0 magnitude earthquake had struck off Japan seemed to rattle traders, selling off a roughly 20 point gain in the final five minutes.
Dow 10,325.26, +4.23 (0.04%)
NASDAQ 2,238.26, +4.04 (0.18%)
S&P 500 1,104.49, +1.56 (0.14%)
NYSE Composite 7,035.04, +21.59 (0.31%)
Advancing issues led decliners, 3887-2872. There were 312 new highs, to just 34 new lows. Volume was spare.
NYSE Volume 4,742,490,500
NASDAQ Volume 2,153,935,500
Oil finished ahead by $1.49, at $79.66. Gold gained $10.00, to $1,118.50, while silver also was up, ahead by 37 cents, to $16.51.
The major indices finished up for the day and the month, but down for the week. In 2010, stocks have finished weeks on the upside just 3 times and lower 5 times. The major indices are down for the year, but only by 1 or 2%.
The government's revised reading on 4th quarter GDP was no surprise, at 5.9%. Chicago PMI was up a point, to 62.6, in February, and the University of Michigan's Final Consumer Sentiment gauge for February came in at 73.6.
Following the release of the housing data at 10:00 am, stocks sank to their lows of the day, but, as has been the case recently, the not-quite-invisible hand of the PPT or other erstwhile stock manipulators pushed the index to its high of the day in less than 30 minutes, a move of roughly 75 points on the Dow.
After that initial burst of despair and excitement, stocks vacillated just above the unchanged mark for the remainder of a lackluster session, one with even lower trading volume than normal due to severe winter storms in the Northeast. Also, just moments before the closing bell, word that a 7.0 magnitude earthquake had struck off Japan seemed to rattle traders, selling off a roughly 20 point gain in the final five minutes.
Dow 10,325.26, +4.23 (0.04%)
NASDAQ 2,238.26, +4.04 (0.18%)
S&P 500 1,104.49, +1.56 (0.14%)
NYSE Composite 7,035.04, +21.59 (0.31%)
Advancing issues led decliners, 3887-2872. There were 312 new highs, to just 34 new lows. Volume was spare.
NYSE Volume 4,742,490,500
NASDAQ Volume 2,153,935,500
Oil finished ahead by $1.49, at $79.66. Gold gained $10.00, to $1,118.50, while silver also was up, ahead by 37 cents, to $16.51.
The major indices finished up for the day and the month, but down for the week. In 2010, stocks have finished weeks on the upside just 3 times and lower 5 times. The major indices are down for the year, but only by 1 or 2%.
The government's revised reading on 4th quarter GDP was no surprise, at 5.9%. Chicago PMI was up a point, to 62.6, in February, and the University of Michigan's Final Consumer Sentiment gauge for February came in at 73.6.
Friday, September 11, 2009
Remembering 9/11; No Break for Bears; Gold Tops $1000
The trading day began with moments of silence... remembering the victims of the awful attacks on the World Trade Center 8 years earlier. At the close, strangely enough, the Dow Jones Industrials stood 0.10 lower than the close on September 10, 2001. It was a sombre session, within a tight trading range, the mood almost preoccupied with previous events.
While many market participants recalled 9/11, others were focused on more current disasters, namely the fall of Lehman Brothers, which occurred just one year prior. The US economy and the markets have been through a metaphorical wringer since last September, witnessing the near-collapse of the entire financial system, followed, thankfully, by a subsequent recovery.
Though all of the major indices closed lower on the day, ending a five-day winning streak for the bulls, the losses were barely noticeable. For the week, the Dow finished ahead by 164 points, the NASDAQ improved by 62, and the S&P added 26 points, all reinforcing the recovery wind that has swept over the financial landscape.
Dow 9,605.41. -22.07 (0.23%)
NASDAQ 2,080.90, -3.12 (0.15%)
S&P 500 1,042.73, -1.41 (0.14%)
NYSE Composite 6,843.82, -6.99 (0.10%)
Market internals ended on a mixed note, with decliners gaining a small, late advantage over advancing issues, 3223-3205. New highs continued to dominate new lows, however, 349-88, giving every indication that the rally will not wilt soon. Volume returned to its sluggish ways, with trading activity close to the lowest level of the week, though the NASDAQ still seems to be the place to which money is flowing.
NYSE Volume 1,388,797,000
NASDAQ Volume 2,347,513,000
Economic reports offered some vague insights. Consumer sentiment shot up to 70.2 for September, after a showing of 65.7 in August. Wholesale inventories dropped 1.4%, the 11th consecutive monthly decline. This shows that goods are still moving at a very sluggish pace and wholesalers are playing close to the vest, though eventually manufacturers will be called upon to replenish inventories. When that begins to happen, a strong reaction by the markets is almost assured.
Another positive sign came at 2:00, when the US Treasury announced a budget deficit for August of $111.4B, when analysts were expecting much worse, though the markets barely noticed.
Commodities finished in very mixed fashion. Oil was hammered down $2.65, to $69.29, on oversupply concerns, but gold finally topped the $1000 mark, ending with a gain of $9.60, at $1,006.40. Silver lagged, up only 3 cents, to $16.70.
From a chartist's perspective, the trading day was positive for bulls, as stocks advanced in the early going, fell to the lows of the day shortly after noon and then recovered into the close. With the slightly lower finish, it has set the classic bear trap for the opening session next week.
While many market participants recalled 9/11, others were focused on more current disasters, namely the fall of Lehman Brothers, which occurred just one year prior. The US economy and the markets have been through a metaphorical wringer since last September, witnessing the near-collapse of the entire financial system, followed, thankfully, by a subsequent recovery.
Though all of the major indices closed lower on the day, ending a five-day winning streak for the bulls, the losses were barely noticeable. For the week, the Dow finished ahead by 164 points, the NASDAQ improved by 62, and the S&P added 26 points, all reinforcing the recovery wind that has swept over the financial landscape.
Dow 9,605.41. -22.07 (0.23%)
NASDAQ 2,080.90, -3.12 (0.15%)
S&P 500 1,042.73, -1.41 (0.14%)
NYSE Composite 6,843.82, -6.99 (0.10%)
Market internals ended on a mixed note, with decliners gaining a small, late advantage over advancing issues, 3223-3205. New highs continued to dominate new lows, however, 349-88, giving every indication that the rally will not wilt soon. Volume returned to its sluggish ways, with trading activity close to the lowest level of the week, though the NASDAQ still seems to be the place to which money is flowing.
NYSE Volume 1,388,797,000
NASDAQ Volume 2,347,513,000
Economic reports offered some vague insights. Consumer sentiment shot up to 70.2 for September, after a showing of 65.7 in August. Wholesale inventories dropped 1.4%, the 11th consecutive monthly decline. This shows that goods are still moving at a very sluggish pace and wholesalers are playing close to the vest, though eventually manufacturers will be called upon to replenish inventories. When that begins to happen, a strong reaction by the markets is almost assured.
Another positive sign came at 2:00, when the US Treasury announced a budget deficit for August of $111.4B, when analysts were expecting much worse, though the markets barely noticed.
Commodities finished in very mixed fashion. Oil was hammered down $2.65, to $69.29, on oversupply concerns, but gold finally topped the $1000 mark, ending with a gain of $9.60, at $1,006.40. Silver lagged, up only 3 cents, to $16.70.
From a chartist's perspective, the trading day was positive for bulls, as stocks advanced in the early going, fell to the lows of the day shortly after noon and then recovered into the close. With the slightly lower finish, it has set the classic bear trap for the opening session next week.
Friday, February 15, 2008
Tired Markets End Week Mixed; Economy Remains Top Concern
The floor traders weren't the only ones tuckered out as another volatile week came to an end. Economists and financial news journalists tired themselves out dissecting Thursday's remarks to Congress by Fed Chairman Ben Bernanke.
There was more substance than style to the Chairman's message. He basically held nothing back, telling anyone within earshot (read: the entire civilized world) that the American economy was in a very rough patch.
Sadly for those on the bullish side of the trade, Friday began in the red and remained there all day. There was some indication of PPT activity near the close, though it could just as easily have been short-covering that boosted the markets in the final hour.
The overall tone of trade was as dull as a old spoon, as the day's volume tapered off to merely a trickle, and with nearly no resistance, the insiders saw an easy path to offering some small glimmer of hope and goosed the indices up in the final fifteen minutes of the session.
The S&P popped over to positive with just ten minutes left to trade. With the markets closed on Monday in observance of President's Day, there weren't many traders left to compete with whomever was driving the mini-rally.
The overall effort was half-hearted and meant nothing in the larger scheme, still biased to the downside.
Dow 12,348.21 -28.77; NASDAQ 2,321.80 -10.74; S&P 500 1,349.99 +1.13; NYSE Composite 8,970.76 +2.35
Friday's main driver was industrial production, a figure released prior to the market opening, which showed an economy flat lining, with growth of 0.1%, essentially nothing. Capacity utilization remained flat at 81.5%, and that's a number that bears watching. If production tails off, that will be a prime indicator with layoffs following quickly behind.
Adding to the Street's bad mood, the Reuters/University of Michigan index of consumer sentiment fell to 69.6 in February from 78.4 in January, the lowest level since 1992.
The shocker from the New York Empire State Index, which fell to a level not seen since March of 2003 (the end of the last bear market and recession), at -11.7, was just more grist for the recession mill and certainly aided in the pervasively dour mood that clouded markets as the week ended.
Declining issues actually registered somewhat of an outsize edge over gainers, 3765-2456, and new lows trumped new highs once more, 275-56. The highs vs. lows reading implied that more stocks were being dumped on Friday and some sector adjustments were being made in larger portfolios. Difficult to tell with any degree of accuracy, but the shift seemed to be away from small cap techs (especially those in need of capital) toward larger caps with positive balance sheets.
Money on hand is going to be all the rage as economic forces push lenders closer to illiquid levels and insolvency in coming months. Cash will indeed be king, which also goes to explain the low volume of late. Smart money is sitting this dance out.
Commodities, even oil, languished. Oil was up just 4 cents to close at 95.50. Gold dipped $4.70 to $906.10 and silver fell 14 cents to $17.12.
Economic issues will take center stage again for the next four to six weeks, now that most companies have reported earnings. The outlook, including, somewhat amazingly, appears more dire than ever as America tilts closer the low end of the business cycle.
NYSE Volume 3,485,640,750
NASDAQ Volume 1,999,531,625
There was more substance than style to the Chairman's message. He basically held nothing back, telling anyone within earshot (read: the entire civilized world) that the American economy was in a very rough patch.
Forex Beginner's Resource Website
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Most of the action in stocks took place during and immediately after his testimony, leaving little to the imaginative traders who might have been looking for a bounce on Friday.Forex Foreign Currency Exchange Trading Beginner's Resource Center.
forexforexforexforex.com
Sadly for those on the bullish side of the trade, Friday began in the red and remained there all day. There was some indication of PPT activity near the close, though it could just as easily have been short-covering that boosted the markets in the final hour.
The overall tone of trade was as dull as a old spoon, as the day's volume tapered off to merely a trickle, and with nearly no resistance, the insiders saw an easy path to offering some small glimmer of hope and goosed the indices up in the final fifteen minutes of the session.
The S&P popped over to positive with just ten minutes left to trade. With the markets closed on Monday in observance of President's Day, there weren't many traders left to compete with whomever was driving the mini-rally.
The overall effort was half-hearted and meant nothing in the larger scheme, still biased to the downside.
Dow 12,348.21 -28.77; NASDAQ 2,321.80 -10.74; S&P 500 1,349.99 +1.13; NYSE Composite 8,970.76 +2.35
Friday's main driver was industrial production, a figure released prior to the market opening, which showed an economy flat lining, with growth of 0.1%, essentially nothing. Capacity utilization remained flat at 81.5%, and that's a number that bears watching. If production tails off, that will be a prime indicator with layoffs following quickly behind.
Adding to the Street's bad mood, the Reuters/University of Michigan index of consumer sentiment fell to 69.6 in February from 78.4 in January, the lowest level since 1992.
The shocker from the New York Empire State Index, which fell to a level not seen since March of 2003 (the end of the last bear market and recession), at -11.7, was just more grist for the recession mill and certainly aided in the pervasively dour mood that clouded markets as the week ended.
Declining issues actually registered somewhat of an outsize edge over gainers, 3765-2456, and new lows trumped new highs once more, 275-56. The highs vs. lows reading implied that more stocks were being dumped on Friday and some sector adjustments were being made in larger portfolios. Difficult to tell with any degree of accuracy, but the shift seemed to be away from small cap techs (especially those in need of capital) toward larger caps with positive balance sheets.
Money on hand is going to be all the rage as economic forces push lenders closer to illiquid levels and insolvency in coming months. Cash will indeed be king, which also goes to explain the low volume of late. Smart money is sitting this dance out.
Commodities, even oil, languished. Oil was up just 4 cents to close at 95.50. Gold dipped $4.70 to $906.10 and silver fell 14 cents to $17.12.
Economic issues will take center stage again for the next four to six weeks, now that most companies have reported earnings. The outlook, including, somewhat amazingly, appears more dire than ever as America tilts closer the low end of the business cycle.
NYSE Volume 3,485,640,750
NASDAQ Volume 1,999,531,625
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