Monday saw unusual movement in the various major indices. While the Dow was slightly lower, the S&P and NYSE up marginally, the NASDAQ powered ahead 20 points. As Friday was options expiration day for May, we can expect to see more of a realistic trading pattern for at least the next three weeks. Earnings for the first quarter are largely behind us, so the markets should move on M&A activity and economic reports.
Additionally, the price of oil and motor fuel should play significant roles in any movement over the next month. US motorists have just about had it with the managed price escalation by Big Oil. Unfortunately, there's little the US consumer can do about it. Nearly everybody in America owns a car out of necessity, except where public transportation is functional, like New York, Washington D.C. or Chicago.
Even in the grand metropolises, public transportation is either incomplete or only a portion of the total people-moving mechanism. Americans are overall tied to their cars and there's no easy solution. Therefore, gas prices are at a point right now that they are eating into disposable income in some classes. In the lower classes, high fuel costs are eating into necessities like food and health, and in some cases, savings.
Dow 13,542.88 -13.65; NASDAQ 2,578.79 +20.34; S&P 500 1,525.10 +2.35; NYSE Composite 9,897.46 +3.72
Keeping with the theme, light crude on the NYMERC shot up another $1.33 on Monday to settle at $66.27, the highest it's been in months. With summer driving season ahead and the American oil companies firmly in control of the pricing, the government, and soon, our wallets, don't expect any relief through the Memorial Day weekend at least. We're being gouged but good, and between our brain-dead (and oil rich) President and the supine Congress, the American public is on its own here. It's either fish or cut bait, or, more appropriately, drive or ride a bike.
Advancing issues held sway over decliners by a 5-3 margin (2-1 on the NASDAQ), and you wouldn't know it just from the headline numbers, but there were an impressive 540 new highs and just 71 new lows. For what looked on the surface like a dull day, there was plenty of movement out of the blue chips on the Dow and into mid-cap tech stocks. Whether this trend holds up over the short and long-term remains to be seen, though this kind of cyclical rotation is normal in bull markets. Sellers are taking profits and re-investing in what they may view as undervalued sectors. Tech is still rebounding from 2000, though it's been growing exceptionally, especially in the internet and computing space.
Gold was up $1.80 and silver gained 13 cents. Both of the precious metals have been depressed for over a year now - not so precious.
Update on Marvel Enterprises (MVL): Well, like I said in my original post on Marvel, the price decline after a stellar earnings report was more options-related and short term profit-taking than anything else. The stock dropped to a low of 25.50 on Friday, the options expiration date for May. Marvel finally closed at 26.25 as the week ended. On Monday, investors could not get enough of the Spidey-stock, boosting it 2.10 (8%) to a finish at 28.35. Volume was 4 times normal. The die has been cast. This one's a keeper in a big way. I re-reinterate my buy recommendation and price target of 38-42.
Monday, May 21, 2007
Friday, May 18, 2007
Another Day, Another Dow Record
The beat goes on and on and on...
Investors got back to their habitual buying on Friday - as the oil boom also continued apace - with little to hold them back. There was scant economic news and with the world awash with money, traders sent stocks soaring on all major indices.
Dow 13,556.53 +79.81; NASDAQ 2,558.45 +19.07; S&P 500 1,522.75 +10.00; NYSE Composite 9.893.74 +74.76
In addition to the Dow crashing through the 13,500 mark, the S&P closed to within 10 points of its all-time record closing high and the NASDAQ broke through a key support area at 2,553.00.
As has been repeated here ad nauseum the environment for corporations in the United States has never been easier and more conducive to high profitability. There is literally no government oversight and regulations are lax or outright disregarded.
Investors sense this giddy atmosphere and are piling into US stocks like never before, the consequences be damned. America is at the height of its power and Wall Street is bent on cashing in.
The overall breadth of the market was not pronounced on Friday however, as advancing issues outpaced decliners by a modest 5-3 ratio, though new highs stepped up to 404, versus 126 new lows.
Oil was up only 8 cents, while the metals rebounded slightly after a recent spate of selling. Gold gained $4.80 to $662.00; silver was higher by 12 cents to close at an even $13.00. It wasn't but a week ago that silver was threatening to break above $14 and gold set to surpass $700, but the rally fizzled badly.
By any measure, this was one of the best weeks ever to be an investor, in one of the best years, so far.
Investors got back to their habitual buying on Friday - as the oil boom also continued apace - with little to hold them back. There was scant economic news and with the world awash with money, traders sent stocks soaring on all major indices.
Dow 13,556.53 +79.81; NASDAQ 2,558.45 +19.07; S&P 500 1,522.75 +10.00; NYSE Composite 9.893.74 +74.76
In addition to the Dow crashing through the 13,500 mark, the S&P closed to within 10 points of its all-time record closing high and the NASDAQ broke through a key support area at 2,553.00.
As has been repeated here ad nauseum the environment for corporations in the United States has never been easier and more conducive to high profitability. There is literally no government oversight and regulations are lax or outright disregarded.
Advertise on Blogs
Choose your own colors, dates and message for maximum impact.
dtmagazine.com/customtext.html
Empowered by a hands-off government, American corporations are able to bend rules and break laws at will and many of them are more than willing to take full advantage.Choose your own colors, dates and message for maximum impact.
dtmagazine.com/customtext.html
Investors sense this giddy atmosphere and are piling into US stocks like never before, the consequences be damned. America is at the height of its power and Wall Street is bent on cashing in.
The overall breadth of the market was not pronounced on Friday however, as advancing issues outpaced decliners by a modest 5-3 ratio, though new highs stepped up to 404, versus 126 new lows.
Oil was up only 8 cents, while the metals rebounded slightly after a recent spate of selling. Gold gained $4.80 to $662.00; silver was higher by 12 cents to close at an even $13.00. It wasn't but a week ago that silver was threatening to break above $14 and gold set to surpass $700, but the rally fizzled badly.
By any measure, this was one of the best weeks ever to be an investor, in one of the best years, so far.
Thursday, May 17, 2007
Stocks Take a Thursday Break
Stocks traded in very narrow ranges on Thursday as all major indices turned slightly negative. While volume was still on the high end, there was more than enough selling to offset any optimistic buying.
Dow 13,476.72 -10.81; NASDAQ 2,539.38 -8.04; S&P 500 1,512.75 -1.39; NYSE Composite 9,818.98 -6.45
Losers led the way over winners by a 5-3 margin, while new highs outpaced new lows, 312-151.
Oil was the enemy of all economies again, leaping $2.31 to $64.86, the highest price in weeks. The metals continued their declines, with gold down $4.30 to $657.20, while silver dropped 5 cents to $12.88.
Friday could turn either way, as profit-taking seems to be in vogue, though the lack of economic news may prove a catalyst in itself.
It was really one of the duller days of the past few months. Friday offers options expiration, but that all seems played out already.
Dow 13,476.72 -10.81; NASDAQ 2,539.38 -8.04; S&P 500 1,512.75 -1.39; NYSE Composite 9,818.98 -6.45
Losers led the way over winners by a 5-3 margin, while new highs outpaced new lows, 312-151.
Oil was the enemy of all economies again, leaping $2.31 to $64.86, the highest price in weeks. The metals continued their declines, with gold down $4.30 to $657.20, while silver dropped 5 cents to $12.88.
Friday could turn either way, as profit-taking seems to be in vogue, though the lack of economic news may prove a catalyst in itself.
It was really one of the duller days of the past few months. Friday offers options expiration, but that all seems played out already.
Wednesday, May 16, 2007
The Hits Just Keep Coming... Another Record for the Dow
Just a day after a strong rally was derailed midday by discouraging housing news, investors shrugged off more bad news from the residential housing sector and galloped higher, with the Dow making another closing high, nearing 13,500.
Dow 13,487.53 +103.69; NASDAQ 2,547.42 +22.13; S&P 500 1,514.14 +12.95; NYSE Composite 9,825.43 +60.70
The S&P, meanwhile made up most of the losses from the previous four sessions' gyrations and closed at its highest level in more than 6 1/2 years, only 13 points away from an all time high of its own.
As has been noted here before, as long as the Fed remains even-keeled in its approach to interest rates and keeps creating new money out of thin air and debt, this bull run could continue longer than anyone suspects. Of course, the naysayers believe that the longer it runs, the worst the final fall will be. Most investors are willing to take that risk right now as corporate profits and merger activity continue unabated.
Adding to the glee chorus on Wednesday was a slight dip in oil prices and word from a possibly dubious source that gasoline prices may not rise much more. According to Guy Caruso of the government's Energy Information Administration: "We do anticipate some improvement in the coming months."
Whether Caruso was expressing improvement for the oil companies or motorists was not clear, though most assume he meant well for US gas consumers. Caruso appeared at a House Judiciary Committee antitrust panel on Capitol Hill that grilled oil execs over the recent and continued price hikes at the pump.
The price of crude oil fell 62 cents to close at $62.55, which seems to be the desired price level of the moment. At the $62-64 level almost everybody - oil companies, OPEC and consumers - is happy, though the argument is that OPEC and Big Oil are more happy than the average Janes and Joes filling their vehicles.
Gold and silver were off sharply. Gold lost $13.00 to $661.50, while silver fell 39 cents to $12.93.
Advancing stocks beat decliners by better than 3-2, and there were 286 new highs to 152 new lows.
Dow 13,487.53 +103.69; NASDAQ 2,547.42 +22.13; S&P 500 1,514.14 +12.95; NYSE Composite 9,825.43 +60.70
The S&P, meanwhile made up most of the losses from the previous four sessions' gyrations and closed at its highest level in more than 6 1/2 years, only 13 points away from an all time high of its own.
As has been noted here before, as long as the Fed remains even-keeled in its approach to interest rates and keeps creating new money out of thin air and debt, this bull run could continue longer than anyone suspects. Of course, the naysayers believe that the longer it runs, the worst the final fall will be. Most investors are willing to take that risk right now as corporate profits and merger activity continue unabated.
Adding to the glee chorus on Wednesday was a slight dip in oil prices and word from a possibly dubious source that gasoline prices may not rise much more. According to Guy Caruso of the government's Energy Information Administration: "We do anticipate some improvement in the coming months."
Whether Caruso was expressing improvement for the oil companies or motorists was not clear, though most assume he meant well for US gas consumers. Caruso appeared at a House Judiciary Committee antitrust panel on Capitol Hill that grilled oil execs over the recent and continued price hikes at the pump.
The price of crude oil fell 62 cents to close at $62.55, which seems to be the desired price level of the moment. At the $62-64 level almost everybody - oil companies, OPEC and consumers - is happy, though the argument is that OPEC and Big Oil are more happy than the average Janes and Joes filling their vehicles.
Gold and silver were off sharply. Gold lost $13.00 to $661.50, while silver fell 39 cents to $12.93.
Advancing stocks beat decliners by better than 3-2, and there were 286 new highs to 152 new lows.
Tuesday, May 15, 2007
Not As Good As It Could Have Been
A rather somber tone fell over Wall Street Tuesday afternoon as traders digested disheartening news from the housing sector. A report released by the National Association of Home Builders confirmed that home builders don't see a recovery in the housing market until 2008, plus, a confidence survey fell 3 points to 30 in May, equaling the low hit last September.
It was not the kind of news for which the markets were prepared. After the CPI report prior to the opening showed a rather tame increase of 0.4% for April - and 0.2 for core CPI (excluding food and energy) - traders responded with enthusiastic buying, though their buoyant mood was tempered later in the day.
The Dow, which had been up nearly 135 points early, slipped into the close with a marginal gain, though still closing at a new record high. The NASDAQ, S&P and NYSE Comp. all closed lower for the second straight day.
Dow 13,383.84 +37.06; NASDAQ 2,525.29 -21.15; S&P 500 1,501.19 -1.96; NYSE Composite 9,764.73 -0.65
Advancers were swamped by declining issues, especially on the NASDAQ, with the overall margin favoring losers by a 2-1 margin.
New highs remained somewhat steadfast, with 347 issues making new tops, though new lows continued to mount, claiming 161 on the day, the highest total in weeks.
A pullback is more likely than ever, though chances are good that the persistent problems in the housing sector are likely to spill over enough into the equities economy to cause serious problems. Any downturn is likely to be short-lived without more evidence of failing corporate profits, which have remained solid.
Oil jumped 71 cents to $63.17, and the metals also caught some of the commodity updraft. Gold gained $4.40; silver was ahead by 8 cents.
With gas prices at all-time highs at US service stations, unemployment remains historically low and the American economy, from a comparative point of view, still seems as safe and stable as ever. The myriad of problems in the general economy continue to appear manageable and pose little threat to US stocks, especially, as it seems, those of the blue chip variety.
It was not the kind of news for which the markets were prepared. After the CPI report prior to the opening showed a rather tame increase of 0.4% for April - and 0.2 for core CPI (excluding food and energy) - traders responded with enthusiastic buying, though their buoyant mood was tempered later in the day.
The Dow, which had been up nearly 135 points early, slipped into the close with a marginal gain, though still closing at a new record high. The NASDAQ, S&P and NYSE Comp. all closed lower for the second straight day.
Dow 13,383.84 +37.06; NASDAQ 2,525.29 -21.15; S&P 500 1,501.19 -1.96; NYSE Composite 9,764.73 -0.65
Advancers were swamped by declining issues, especially on the NASDAQ, with the overall margin favoring losers by a 2-1 margin.
New highs remained somewhat steadfast, with 347 issues making new tops, though new lows continued to mount, claiming 161 on the day, the highest total in weeks.
A pullback is more likely than ever, though chances are good that the persistent problems in the housing sector are likely to spill over enough into the equities economy to cause serious problems. Any downturn is likely to be short-lived without more evidence of failing corporate profits, which have remained solid.
Oil jumped 71 cents to $63.17, and the metals also caught some of the commodity updraft. Gold gained $4.40; silver was ahead by 8 cents.
With gas prices at all-time highs at US service stations, unemployment remains historically low and the American economy, from a comparative point of view, still seems as safe and stable as ever. The myriad of problems in the general economy continue to appear manageable and pose little threat to US stocks, especially, as it seems, those of the blue chip variety.
Subscribe to:
Posts (Atom)
Posts
