Stocks traded in lazy fashion on Thursday, buoyed by news that China's government would cut some of its subsidy on gasoline, thus raising prices at the pump in the People's Republic.
This was generally viewed as good news while the US media focused on the phony issue of off-shore drilling and exploration. The truth is that a rise in the price of gas in China is better news than any off-shore drilling would supply over the next 5 years.
Since the price of oil - and gas - is largely out of the control of supply-demand economics and more the function of speculation, the only likely beneficiaries of new drilling or lowering subsidies are oil companies, and we're stuck with them for the foreseeable future.
Dow 12,063.09 +34.03; NASDAQ 2,462.07 +32.36; S&P 500 1,342.83 +5.02; NYSE Composite 8,988.86 -10.72
On the whole, trading was somewhat suspect, with the major indices trading in a tight range tilted only slightly to the positive. In fact, all of Thursday's gains on the Dow could have been made between 2:00 and 3:00 pm. Before and after that was more or less noise and stocks fell noticeably after 3:00 pm.
On the day, advancing and declining issues played a tug-of-war, resulting in a meager victory for the gainers, which ended ahead, 3304-2914. New lows beat new highs again, 444-151.
The tone of investing over the past four sessions indicates a general lack of enthusiasm which almost always results in either outright declines or what I like to call fizzled rally syndrome.
In the latter instance, stocks rise on some - any - kind of positive news, then topple over like an unstable pile of bricks, leaving marginal gains for some, and losses for many. That was today. Tomorrow may be different, but probably, it will be more of the same, low-volume, disinterested kind of trade.
Oil ended happily lower by $4.57, a rather large loss, settling at $132.60. Gold broke over a key psychological barrier, finishing the day $10.70 higher, at $904.20. Silver rose in sympathy, up 13 cents to $17.47.
Following today's scant economic news (Philly Fed -17.1, -15.6 prior month; leading indicators up 0.1%; initial claims -5K), there's nothing on the calendar for Friday, so investors should expect the week to end with the same dull thud with which it began.
In the immortal word of the Mogambo Guru, "ugh."
NYSE Volume 1,199,263,000
NASDAQ Volume 2,274,517,000
Thursday, June 19, 2008
Wednesday, June 18, 2008
Stocks Taken Down Again
For the second straight day, US equities were hammered down as investors continue to express negative sentiment by selling en masse.
Following the release of poor quarterly results by FedEx (FDX, 82.60, -1.73) and Morgan Stanley (MS, 40.69, -0.10) traders quickly sent stocks into negative territory where they spent the remainder of the session.
Dow 12,029.06 -131.24; NASDAQ 2,429.71 -28.02; S&P 500 1,337.81 -13.12; NYSE Composite 8,999.56 -74.85
The Dow closed less than 300 points above the March 10 lows (11,740) which marked a 16-month bottom. Other indices are heading in the same direction.
Once again, financial issues were the main drag on stocks, though 11 of 12 sectors were lower. Only Basic Materials showed a gain over the course of the session.
Despite the obvious impetus to sell, volume overall was again sluggish.
Crude oil for August delivery gained $2.37 to $136.90. Gold finished $6.60 higher, at $893.50. Silver gained as well, up 27 cents to $17.34.
NYSE Volume 1,282,983,000
NASDAQ Volume 2,060,739,000
Following the release of poor quarterly results by FedEx (FDX, 82.60, -1.73) and Morgan Stanley (MS, 40.69, -0.10) traders quickly sent stocks into negative territory where they spent the remainder of the session.
Dow 12,029.06 -131.24; NASDAQ 2,429.71 -28.02; S&P 500 1,337.81 -13.12; NYSE Composite 8,999.56 -74.85
The Dow closed less than 300 points above the March 10 lows (11,740) which marked a 16-month bottom. Other indices are heading in the same direction.
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Declining issues ran well ahead of advancers, 4294-1690. New lows outdid new highs, 469-129.Edmonton, Vancouver, Bad Credit, Divorced, Bankruptcy OK. Apply online.
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Once again, financial issues were the main drag on stocks, though 11 of 12 sectors were lower. Only Basic Materials showed a gain over the course of the session.
Despite the obvious impetus to sell, volume overall was again sluggish.
Crude oil for August delivery gained $2.37 to $136.90. Gold finished $6.60 higher, at $893.50. Silver gained as well, up 27 cents to $17.34.
NYSE Volume 1,282,983,000
NASDAQ Volume 2,060,739,000
Tuesday, June 17, 2008
Stocks Drop on Low Volume
The inevitable has occurred on Wall Street. Investors, like many other hip, urbane global citizens have figured out that US equities are not the only game on Wall Street, or Fleet Street or in Shanghai, Tokyo, Stockholm, Bombay or any other financial center.
Thus, when the US economy appears shaky, investors look elsewhere. There are stock markets and exchanges everywhere. It's one of the effects of globalization. One of the unintended consequences, to be sure, for Americans, but it is there, and it could be devastating.
On a level playing field, American companies compete with those from China, India, Europe, the Middle East, South America, Australia and everywhere else capital and public companies can be found, which, these days, is just about anywhere on the planet.
Dow 12,160.30 -108.78; NASDAQ 2,457.73 -17.05; S&P 500 1,350.93 -9.21; NYSE Composite 9,074.41 -13.47
With summer on the rise, volume on the US exchanges is usually lower, though this season seems even less vigorous than usual. It's been weeks of sub-par volume on the NYSE and NASDAQ with no end in sight. Today, investors were selling, and it didn't take much to push stocks back to their lowest levels since March.
Adding to investor concerns were today's PPI results from May, which showed producer prices increasing at a 1.4% clip, though this marked jump was almost all attributable to gains in fuel and food, as the core rate increased only 0.2% for the month.
Housing starts fell to their lowest level since 1991, at 975,000 units, which, though more of the same old news, was still an unwelcome reminder that one of the great asset classes was still skidding downhill.
Even more important, though sparsely reported by the bulk of the established economic press, were capacity utilization which fell to 79.4% in May, from 79.6% in the prior month, and industrial production, which notched a -0.2% figure over the same period, adding to the -0.7 drop in April.
Both of these numbers border on dismal. Optimally, capacity utilization should be above 94% and industrial production should be rising, not falling. These are both ominous signs of the considerable risk of recession, or, further proof that the US economy is already receding.
Advancing issues were overwhelmed by decliners, 3647-2327. New lows once again scored past new highs, 189-153, though the majority of the new lows came from the NASDAQ.
Oil fell by 81 cents, to $134.53. Gold was up marginally as well, gaining 60 cents to $886.90. Silver advanced 16 cents to $17.08 the ounce.
For the second consecutive session, the lack of volume was the leading story.
NYSE Volume 1,093,504,000
NASDAQ Volume 1,830,339,000
Thus, when the US economy appears shaky, investors look elsewhere. There are stock markets and exchanges everywhere. It's one of the effects of globalization. One of the unintended consequences, to be sure, for Americans, but it is there, and it could be devastating.
On a level playing field, American companies compete with those from China, India, Europe, the Middle East, South America, Australia and everywhere else capital and public companies can be found, which, these days, is just about anywhere on the planet.
Dow 12,160.30 -108.78; NASDAQ 2,457.73 -17.05; S&P 500 1,350.93 -9.21; NYSE Composite 9,074.41 -13.47
With summer on the rise, volume on the US exchanges is usually lower, though this season seems even less vigorous than usual. It's been weeks of sub-par volume on the NYSE and NASDAQ with no end in sight. Today, investors were selling, and it didn't take much to push stocks back to their lowest levels since March.
Adding to investor concerns were today's PPI results from May, which showed producer prices increasing at a 1.4% clip, though this marked jump was almost all attributable to gains in fuel and food, as the core rate increased only 0.2% for the month.
Housing starts fell to their lowest level since 1991, at 975,000 units, which, though more of the same old news, was still an unwelcome reminder that one of the great asset classes was still skidding downhill.
Even more important, though sparsely reported by the bulk of the established economic press, were capacity utilization which fell to 79.4% in May, from 79.6% in the prior month, and industrial production, which notched a -0.2% figure over the same period, adding to the -0.7 drop in April.
Both of these numbers border on dismal. Optimally, capacity utilization should be above 94% and industrial production should be rising, not falling. These are both ominous signs of the considerable risk of recession, or, further proof that the US economy is already receding.
Advancing issues were overwhelmed by decliners, 3647-2327. New lows once again scored past new highs, 189-153, though the majority of the new lows came from the NASDAQ.
Oil fell by 81 cents, to $134.53. Gold was up marginally as well, gaining 60 cents to $886.90. Silver advanced 16 cents to $17.08 the ounce.
For the second consecutive session, the lack of volume was the leading story.
NYSE Volume 1,093,504,000
NASDAQ Volume 1,830,339,000
Monday, June 16, 2008
Stocks Mostly Gain; Dow Lower
US equities took divergent paths on Monday, as the NASDAQ finished higher, the Dow lower, and the S&P 500 mostly unchanged.
Dow 12,269.08 -38.27; NASDAQ 2,474.78 +20.28; S&P 500 1,360.14 +0.11; NYSE Composite 9,087.88 +24.65
Once again, there was little in the way of real economic news to move markets and that was reflected in the sparse volume and slow pace of trade.
This rather sluggish trading should continue through the end of the month at least, in advance of 2nd quarter earnings reports in the middle and latter part of July. There certainly aren't many bargain stocks - at least on a marginal valuation scale - prompting investors to sit and wait until some kind of catalyst offers some kind of direction to the market.
The Fed, which meets next week, is widely speculated to hold interest rates right where they are, with federal funds at 2%. That leaves Bernanke and Co. very little wiggle room to cut, though there's plenty of room to raise rates should inflation become more of a worry.
The good news is that inflation seems to be quite well contained for a change, but economic expansion is being put on hold, due mostly to high oil and gas prices.
Speaking of crude, it was up early, but actually finished 13 cents lower, at $135.34. Reports are circulating far and wide that Saudi Arabia, the world's largest producer of crude oil, intends to increase output by 200,000 barrels a day, in a move that ostensibly would do away with runaway, rampant price hikes seen of late.
Gold finished sharply higher, at $886.30, up $13.20. Silver also followed suit, gaining 67 cents to $17.23. Both metals are still in a trading range well off their highs, set earlier this year. Should oil prices become more contained, a strengthened dollar and renewed economic expansion in the US could defuse the long-run metals and wider commodity rallies. Some relief from high commodity prices would be a welcome relief for both goods producers and consumers alike.
With the credit markets still in a state of near-siezure, stable to lower prices would be a very good sign that the "recession" or slowdown would be nearing a bottom. The truth is that we may have entered a real recession in December of '07, and the end could easily be marked about the time of the presidential elections at the start of November.
Wishful thinking for a better tomorrow.
NYSE Volume 1,163,712,000
NASDAQ Volume 1,862,187,000
Dow 12,269.08 -38.27; NASDAQ 2,474.78 +20.28; S&P 500 1,360.14 +0.11; NYSE Composite 9,087.88 +24.65
Once again, there was little in the way of real economic news to move markets and that was reflected in the sparse volume and slow pace of trade.
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Advancing issues outdid decliners by a healthy margin, 3743-2468. New lows continued to dominate new highs, however, 244-150.The Path of Substantial Wealth and Riches: Your Parents' Influence on Your Finances
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This rather sluggish trading should continue through the end of the month at least, in advance of 2nd quarter earnings reports in the middle and latter part of July. There certainly aren't many bargain stocks - at least on a marginal valuation scale - prompting investors to sit and wait until some kind of catalyst offers some kind of direction to the market.
The Fed, which meets next week, is widely speculated to hold interest rates right where they are, with federal funds at 2%. That leaves Bernanke and Co. very little wiggle room to cut, though there's plenty of room to raise rates should inflation become more of a worry.
The good news is that inflation seems to be quite well contained for a change, but economic expansion is being put on hold, due mostly to high oil and gas prices.
Speaking of crude, it was up early, but actually finished 13 cents lower, at $135.34. Reports are circulating far and wide that Saudi Arabia, the world's largest producer of crude oil, intends to increase output by 200,000 barrels a day, in a move that ostensibly would do away with runaway, rampant price hikes seen of late.
Gold finished sharply higher, at $886.30, up $13.20. Silver also followed suit, gaining 67 cents to $17.23. Both metals are still in a trading range well off their highs, set earlier this year. Should oil prices become more contained, a strengthened dollar and renewed economic expansion in the US could defuse the long-run metals and wider commodity rallies. Some relief from high commodity prices would be a welcome relief for both goods producers and consumers alike.
With the credit markets still in a state of near-siezure, stable to lower prices would be a very good sign that the "recession" or slowdown would be nearing a bottom. The truth is that we may have entered a real recession in December of '07, and the end could easily be marked about the time of the presidential elections at the start of November.
Wishful thinking for a better tomorrow.
NYSE Volume 1,163,712,000
NASDAQ Volume 1,862,187,000
Friday, June 13, 2008
Stocks End Rough Week With Mixed Results
With volatility firmly back in place, on Friday, investors felt safe establishing positions to hold over the weekend. Stocks had been buffeted about by alternating winds of change during a somewhat tumultuous week, but ended higher on the day, but mixed for the week.
This, after a near-400-point drubbing of the Dow just one week ago.
Dow 12,307.35 +165.77; NASDAQ 2,454.50 +50.15; S&P 500 1,360.03 +20.16; NYSE Composite 9,063.23 +115.50
The Dow Jones Industrials finished the week higher by 97 points, but it was the only major index to record gains. For the week, the NASDAQ was down 20 points, the S&P lost 0.65 and the NYSE Composite ended 89 points lower.
Obviously, there was more work for stocks to do before anyone would say this is a true sustainable rally or that any progress had been made vis-a-vis the economy.
On the session, advancing issues finished well ahead of decliners, 4474-1786, though new lows continued to outperform new highs, 330-96, a persistent, troubling trend.
Oil actually lost some ground heading into the weekend, losing $1.91, to $135.47. Gold finished ahead marginally, up $1.10, at $873.10. Silver also posted minor gains, up 8 cents, to $16.56.
Consumer sentiment was markedly lower, with the University of Michigan June survey checking in at 56.7, from 59.8 in May, the lowest level since 1980.
The mixed results on Wall Street are indicative of contentious times for investors. There still needs to be a complete flushing of weak hands before any substantive move forward is warranted.
On the inflation front, the Fed may be convinced that it's time to tighten the credit spigot a bit to keep prices from spiraling out of control. By merely standing pat, or even raising rates 25 basis points, the markets would surely get the message. Such a move at the June 24-25 meeting would be a very stabilizing influence on markets and a strengthening motivation for the US dollar.
Volume on US equity exchanges was moderately lower than the 4-week average.
NYSE Volume 1,224,933,000
NASDAQ Volume 2,113,058,000
This, after a near-400-point drubbing of the Dow just one week ago.
Dow 12,307.35 +165.77; NASDAQ 2,454.50 +50.15; S&P 500 1,360.03 +20.16; NYSE Composite 9,063.23 +115.50
The Dow Jones Industrials finished the week higher by 97 points, but it was the only major index to record gains. For the week, the NASDAQ was down 20 points, the S&P lost 0.65 and the NYSE Composite ended 89 points lower.
Obviously, there was more work for stocks to do before anyone would say this is a true sustainable rally or that any progress had been made vis-a-vis the economy.
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Investors were encouraged by news that the CPI was up only 0.6% in May, with core inflation - excluding food and energy - only 0.2% higher. While those figures may be of some relief to traders, they still indicate an economy dealing with 7.2% annual inflation, though somewhat tempered in that most of it is coming from the obscene rise in the price of crude oil and motor fuel.Forex Foreign Currency Exchange Trading Beginner's Resource Center.
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On the session, advancing issues finished well ahead of decliners, 4474-1786, though new lows continued to outperform new highs, 330-96, a persistent, troubling trend.
Oil actually lost some ground heading into the weekend, losing $1.91, to $135.47. Gold finished ahead marginally, up $1.10, at $873.10. Silver also posted minor gains, up 8 cents, to $16.56.
Consumer sentiment was markedly lower, with the University of Michigan June survey checking in at 56.7, from 59.8 in May, the lowest level since 1980.
The mixed results on Wall Street are indicative of contentious times for investors. There still needs to be a complete flushing of weak hands before any substantive move forward is warranted.
On the inflation front, the Fed may be convinced that it's time to tighten the credit spigot a bit to keep prices from spiraling out of control. By merely standing pat, or even raising rates 25 basis points, the markets would surely get the message. Such a move at the June 24-25 meeting would be a very stabilizing influence on markets and a strengthening motivation for the US dollar.
Volume on US equity exchanges was moderately lower than the 4-week average.
NYSE Volume 1,224,933,000
NASDAQ Volume 2,113,058,000
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