Maybe Tuesday's ramp-up was a little too much, or investors are actually a little concerned about events unfolding in Egypt, but whatever the case or cause, markets didn't do anything other than flatline on Wednesday.
The Dow traded in a 45-point range, while the S&P and NASDAQ were bound by 10 and 5-point ranges, respectively, proving that three's nothing like pushing already overvalued stocks even higher to stall out trading completely.
ADP released its monthly employment report, which suggested private payrolls grew by 187,000 in January, and revised December's report down 50,000, to 247,000. The revision means that the initial report was off by a factor of 16%, making it about as reliable an indicator as anything coming out of the Bureau of Labor Statistics (BLS), which, by the way, is the "official" measure of everything employment-related in the USA.
Market reaction to the number was a big yawn and the rest of the session more resembled churning of butter or grape-stomping rather than orderly markets. The day was a mash, and a dull one, at that.
Dow 12,041.97, +1.81 (0.02%)
NASDAQ 2,750.16, -1.03 (0.04%)
S&P 500 1,304.03, -3.56 (0.27%)
NYSE Composite 8,272.57, -17.52 (0.21%)
Losing issues took control over gainers on the day, 3569-2893. The NASDAQ recorded 158 new highs and 15 new lows, while the NYSE had 255 new highs and 6 new lows. This indicator has been stuck at roughly these levels for the past two months with no signal that they are going to change any time soon, thanks largely to the Fed's easy money policies of ZIRP and QE2. Volume was back at the usual moribund levels.
NASDAQ Volume 2,011,206,000
NYSE Volume 4,553,074,500
Commodities took the day off, especially crude futures, which registered a smallish gain of 9 cents, to $90.86. The precious metals continued to be depressed, with gold down $8.20, to $1,332.10 and silver off 23 cents, to $28.29.
Thursday will bring initial unemployment claims at 8:30 am and Friday will be the big number, the BLS' non-farm payroll report. Of course, none of these indicators really matter much with the Super Bowl on Sunday. As mentioned in previous posts, there won't be any real movement in markets (other than straight up) until after the big game.
Inflation remains a hot topic, with the official government CPI proclaiming it to be hovering in the 1 1/2-2% area, when everyone in the real world knows it's really 5-8% or higher, especially concerning food and fuel.
One area not experiencing inflation are payrolls, which haven't budged much in the last 10 years for most middle class jobs. How long the government can keep the Ponzi scheme of rising prices and stagnant wages going before the USA turns into either Ireland, Greece or Egypt is an open question, though considering the general stupidity and apathetic nature of the American public, it could carry on for some time, measured more in years than months.
But then again, nobody in the "official" world saw the Sub-prime or banking collapse coming, so the next Black Swan could be right around the corner, say, in Pakistan.
Leaders in Washington have been particularly silent of late, focused more on in-fighting than any meaningful, needed reforms, and that condition is unlikely to change. After all the next big congressional and presidential elections are only 21 months away. It's actually quite astounding that nobody from the Republican camp has declared themselves a candidate.
Maybe they're all scared of Sarah Palin, or something worse. But, is there anything worse than the former Alaska governor? Well, there is Michele Bachmann, the woman who keeps John Boehner in tears.
Wednesday, February 2, 2011
Tuesday, February 1, 2011
Dow Breaks 12,000; Highest in 2 1/2 Years
It's hard to find the words to describe what happened today in the investing universe, because, seriously, if the economy is doing so well, why are 15 million Americans still out of work?
And why are home prices continuing to drop? Why are mortgage applications at their lowest levels in 25 years?
We have no manufacturing base to speak of in America, our federal government is running record-setting deficits and most states face bankruptcy from over-promising retirees.
43.5 million Americans are on food stamps.
There's a real disconnect between Wall Street and Main Street. As for Washington, well, they're doing what the American people have come to expect from them, nothing, except fighting with each other.
Since I don't have a rationale for why the market is so ebullient other than the continuous injection of $8-9 billion daily by the Federal Reserve, all I can say is enjoy it while it lasts.
Dow 12,040.16, +148.23 (1.25%)
NASDAQ 2,751.19, +51.11 (1.89%)
S&P 500 1,307.59, +21.47 (1.67%)
NYSE Composite 8,290.09, +150.93 (1.85%)
Advancing issues decimated decliners, 5218-1383. There were 185 new highs and 25 new lows on the NASDAQ. The NYSE recorded 329 new highs and a mere 8 new lows. Volume was actually fairly robust for a rare change.
NASDAQ Volume 2,281,301,250
NYSE Volume 5,423,585,500
Commodities reversed course completely from yesterday. Oil futures were off by $1.42, to $90.77, while gold added $5.80, to $1,340.30. Silver also gained, up 35 cents, to $28.51. One of the odder headlines ever seen was posted today on Yahoo Finance, saying, "Metals up due to improved economy," which is precisely why I didn't read the story. Normally, precious metals gain during times of unease or uncertainty. The unfolding drama in Egypt would be more a reason for them to gain that a wholly great economy.
It's a conundrum. Grow cauliflower.
And why are home prices continuing to drop? Why are mortgage applications at their lowest levels in 25 years?
We have no manufacturing base to speak of in America, our federal government is running record-setting deficits and most states face bankruptcy from over-promising retirees.
43.5 million Americans are on food stamps.
There's a real disconnect between Wall Street and Main Street. As for Washington, well, they're doing what the American people have come to expect from them, nothing, except fighting with each other.
Since I don't have a rationale for why the market is so ebullient other than the continuous injection of $8-9 billion daily by the Federal Reserve, all I can say is enjoy it while it lasts.
Dow 12,040.16, +148.23 (1.25%)
NASDAQ 2,751.19, +51.11 (1.89%)
S&P 500 1,307.59, +21.47 (1.67%)
NYSE Composite 8,290.09, +150.93 (1.85%)
Advancing issues decimated decliners, 5218-1383. There were 185 new highs and 25 new lows on the NASDAQ. The NYSE recorded 329 new highs and a mere 8 new lows. Volume was actually fairly robust for a rare change.
NASDAQ Volume 2,281,301,250
NYSE Volume 5,423,585,500
Commodities reversed course completely from yesterday. Oil futures were off by $1.42, to $90.77, while gold added $5.80, to $1,340.30. Silver also gained, up 35 cents, to $28.51. One of the odder headlines ever seen was posted today on Yahoo Finance, saying, "Metals up due to improved economy," which is precisely why I didn't read the story. Normally, precious metals gain during times of unease or uncertainty. The unfolding drama in Egypt would be more a reason for them to gain that a wholly great economy.
It's a conundrum. Grow cauliflower.
Monday, January 31, 2011
Bulls Dance with Bernanke (the Bernank) through January
Apparently, in this new world order, international crises affect stocks for only one day.
And that day was Friday. Today's trade was "risk on" again, even as the situation in Egypt crept closer to complete anarchy, rioting and food shortages.
Not to worry, Ben Bernanke, according to the schedule, furnished the Primary Dealers with between $6 and $8 billion through outright purchase to grease the skids... er, goose the...um, pump, ah, well, you get the picture.
Stocks went on another tear ahead, leaving Friday's sudden decline for the losers who sold. As all great analysts of today know, you don't fight the Fed or sell the dip. You buy the F-ing dip.
Since there was no news - good or bad - upon which to move markets, we find the tenor of today's trading most appropriate, since CNBC or any other financial journalist doesn't seem to feel a need to mention the beneficial nature of the Fed's QE2 program to stocks, nor the fact that it is inherently inflationary, destructive to capital and a huge Ponzi scheme.
Since this is the final day of trading for the month of January, there was probably some degree of window dressing being done by fund managers and also large dosages of red Kool-aid for all.
Wall Street is drunk with the power of money and fractional reserve banking and is officially in another universe, divorced completely from reality and interested only in fattening the wallets of their directors, themselves and their largest clients.
Egypt will fall, and maybe Saudi Arabia next, but the masters of the universe will still need to keep the stock market going higher, if only to delude millions of Americans that everything is all right. The party will go on as long as nobody removes the punch bowl from which they all drink, and making matters worse is the Ben Bernanke is both designated driver and punch bowl spiker. He has the keys to everyone's cars and an unlimited supply of monetary booze.
Party on! The Bulls are loving the frozen tundra of January, which, by way of reference, we bring the January Barometer, which preaches, "as goes January, so goes the year." And we have no reason to argue with the logic, at least until June, when QE2 is supposed to expire. Besides, the January Barometer has been wrong the past two years, so it should come back for a win in 2011, no?
Dow 11,891.93, +68.23 (0.58%)
NASDAQ 2,700.08, +13.19 (0.49%)
S&P 500 1,286.12, +9.78 (0.77%)
NYSE Composite 8,139.16, +76.52 (0.95%)
Advancing issues beat decliners 4230-2265. Oddly enough, there were only 68 new highs and 39 new lows on the NASDAQ. On the NYSE, new highs beat new lows, 125-18. Volume was well short of Friday's big number, but that's the norm here and has been for some time. Ask yourself, if there's more selling than buying, why are stocks going higher? Then hit yourself in the head with a hammer a few times. That should give you an idea of how convoluted our national markets really are.
NASDAQ Volume 1,991,840,000.00
NYSE Volume 4,939,404,000
Of course, the situation in Egypt, while good for stocks, apparently, is also good for screwing consumers at the pump. Crude futures started the day in the red, but quickly reversed course and ended the day more than 4% higher, up $4.32, to $92.19, even though the Suez Canal remains open and oil continues to flow to its destinations without interruption. There are no disruptions, except for those in the heads of people who believe we must pay more per gallon for gas, no matter what, forever and ever, amen.
And since there's an international crisis, gold should be bid up, but of course, the elitists controlling the precious metals can't have that (they want to buy more at low prices), so they sent the glittering metal down another %10.70, to $1,333.80. Silver also is desirable, though not as much, so it was allowed to rise 85 cents, to $28.17. These commodity trades make no sense unless you have your tin-foil hat firmly attached and antennae up. Otherwise, you don't get it.
While Cairo devolves into a weeping slog of hungry humanity, Wall Streeters will be anxiously awaiting the most current estimate of national shame, Friday's non-farm payroll report. We'll get the highly-discredited ADP report on Wednesday and there will be much speculation. The market experts expect the US to have added between 125,000 and 150,000 jobs in January. That number might be enough to keep up with population growth, and it's well short of anything even suggesting "growth" in job creation, but, if it falls short of the desired result, the very same experts will blame it on the weather, or snowfall, or just ignore it altogether as they usually do.
Because Uncle Benji will be delivering more Bernanke Bucks, and everything will be just fine, you just wait and see.
BTW: The Dow is up more than 300 points this month and since September 1, 2010, it's up almost 1900 points, good for a 19% gain in just five months. See? Everything is just fine.
And that day was Friday. Today's trade was "risk on" again, even as the situation in Egypt crept closer to complete anarchy, rioting and food shortages.
Not to worry, Ben Bernanke, according to the schedule, furnished the Primary Dealers with between $6 and $8 billion through outright purchase to grease the skids... er, goose the...um, pump, ah, well, you get the picture.
Stocks went on another tear ahead, leaving Friday's sudden decline for the losers who sold. As all great analysts of today know, you don't fight the Fed or sell the dip. You buy the F-ing dip.
Since there was no news - good or bad - upon which to move markets, we find the tenor of today's trading most appropriate, since CNBC or any other financial journalist doesn't seem to feel a need to mention the beneficial nature of the Fed's QE2 program to stocks, nor the fact that it is inherently inflationary, destructive to capital and a huge Ponzi scheme.
Since this is the final day of trading for the month of January, there was probably some degree of window dressing being done by fund managers and also large dosages of red Kool-aid for all.
Wall Street is drunk with the power of money and fractional reserve banking and is officially in another universe, divorced completely from reality and interested only in fattening the wallets of their directors, themselves and their largest clients.
Egypt will fall, and maybe Saudi Arabia next, but the masters of the universe will still need to keep the stock market going higher, if only to delude millions of Americans that everything is all right. The party will go on as long as nobody removes the punch bowl from which they all drink, and making matters worse is the Ben Bernanke is both designated driver and punch bowl spiker. He has the keys to everyone's cars and an unlimited supply of monetary booze.
Party on! The Bulls are loving the frozen tundra of January, which, by way of reference, we bring the January Barometer, which preaches, "as goes January, so goes the year." And we have no reason to argue with the logic, at least until June, when QE2 is supposed to expire. Besides, the January Barometer has been wrong the past two years, so it should come back for a win in 2011, no?
Dow 11,891.93, +68.23 (0.58%)
NASDAQ 2,700.08, +13.19 (0.49%)
S&P 500 1,286.12, +9.78 (0.77%)
NYSE Composite 8,139.16, +76.52 (0.95%)
Advancing issues beat decliners 4230-2265. Oddly enough, there were only 68 new highs and 39 new lows on the NASDAQ. On the NYSE, new highs beat new lows, 125-18. Volume was well short of Friday's big number, but that's the norm here and has been for some time. Ask yourself, if there's more selling than buying, why are stocks going higher? Then hit yourself in the head with a hammer a few times. That should give you an idea of how convoluted our national markets really are.
NASDAQ Volume 1,991,840,000.00
NYSE Volume 4,939,404,000
Of course, the situation in Egypt, while good for stocks, apparently, is also good for screwing consumers at the pump. Crude futures started the day in the red, but quickly reversed course and ended the day more than 4% higher, up $4.32, to $92.19, even though the Suez Canal remains open and oil continues to flow to its destinations without interruption. There are no disruptions, except for those in the heads of people who believe we must pay more per gallon for gas, no matter what, forever and ever, amen.
And since there's an international crisis, gold should be bid up, but of course, the elitists controlling the precious metals can't have that (they want to buy more at low prices), so they sent the glittering metal down another %10.70, to $1,333.80. Silver also is desirable, though not as much, so it was allowed to rise 85 cents, to $28.17. These commodity trades make no sense unless you have your tin-foil hat firmly attached and antennae up. Otherwise, you don't get it.
While Cairo devolves into a weeping slog of hungry humanity, Wall Streeters will be anxiously awaiting the most current estimate of national shame, Friday's non-farm payroll report. We'll get the highly-discredited ADP report on Wednesday and there will be much speculation. The market experts expect the US to have added between 125,000 and 150,000 jobs in January. That number might be enough to keep up with population growth, and it's well short of anything even suggesting "growth" in job creation, but, if it falls short of the desired result, the very same experts will blame it on the weather, or snowfall, or just ignore it altogether as they usually do.
Because Uncle Benji will be delivering more Bernanke Bucks, and everything will be just fine, you just wait and see.
BTW: The Dow is up more than 300 points this month and since September 1, 2010, it's up almost 1900 points, good for a 19% gain in just five months. See? Everything is just fine.
Friday, January 28, 2011
More Blood on Wall Street than in Egypt's Streets
The events taking place in Egypt - and soon to follow in Lebanon, Syria, Algeria and elsewhere - sent shock waves down the canyons of Wall Street where even the most resolute bulls were seen to be shedding long positions and running for cover, metaphorically, of course.
Egypt is only the most prescient of what appears to be a global movement to oust corrupt governments. It may soon reach Asian nations, then Europe and eventually the United States, run by the cruelest and most virulent oligarchs in the world.
But first, the thieves must flee with their loot, as they did today, sending shares on the major indices to their steepest losses in over six months, an event long overdue. Certainly, there is more blood to be let on Wall Street, while nations around the globe yearn to be free.
A conversation last night with a friend went something like this:
Friend: The countries want democratic government.
Me: So do Americans.
Both: (Nervous laughter.)
It is true, however, that many Americans - mostly middle class types - feel shortchanged and without a true voice for their condition in the halls of the mighty. It is time that Americans awaken from their iPad-and-TV-induced stupor and seek change. We no longer wish to be ruled by a separate class of bankers and politicians who play by different rules and govern by different laws than those we are subject to. It is time for real examination of the issues of our banking class and prosecutions of those who caused the collapse of 2008 and extend its worst effects even to the present.
Perhaps the sell-off today was keyed by events in the geo-political realm, or perhaps there's more to it, under the surface. Maybe there's little will to invest in companies based in the US which pay little to no taxes and employ nary an American citizen. Perhaps the 3.2% GDP estimate announced today was not nearly enough for a population seeking better answers, better results, from their leaders.
Whatever is the case, it surely appears to be only the beginning. Our first taste of the fruits of global revolt will be gasoline at $3.50 a gallon, then $4, then more. What will be the tipping point in America? Will it come before the government shuts down the internet, as happened today in Egypt? Only time will tell.
Dow 11,823.70, -166.13 (1.39%)
NASDAQ 2,686.89, -68.39 (2.48%)
S&P 500 1,276.34, -23.20 (1.79%)
NYSE Composite 8,062.64, -144.42 (1.76%)
Declining issues led advancers by a mammoth margin, 5397-1195. The NASDAQ was witness to 101 new highs and 24 new lows. On the NYSE, there were 148 new highs and only 19 new lows. These figures are unsurprising, considering how over-inflated stocks have become in the first month of 2011.
Volume was the key to where this is all heading. It was the highest volume day of the year and probably the highest in the last three months, all heading lower. Big volume on a big losing day makes bulls turn tail and run, which is exactly what happened today.
NASDAQ Volume 2,393,749,000
NYSE Volume 6,313,925,500
The commodity complex was also highlighted as NYMEX crude gained $3.70, to $89.34, mostly in concert with the developments in the oil-rich region of North Africa and fears that the Suez Canal might be shut down. Gold reappeared as a safe haven, rising $22.30, to $1,340.70. Silver also abruptly ended its month-long decline, adding 89 cents, to $27.92.
As far as the markets are concerned, the Dow 12,000 hats can be safely put away for another few years and the cheerleading crony capitalist reporters can begin acting more like adults for a change (though we doubt this will happen).
Logically, the end to economic catastrophes, such as the one which began in 2008 and has not ended, is war, and that may be what we're seeing the beginning of in Egypt and surrounding nations. Sooner or later, the Egyptian side of the blockade of the Gaza Strip will be opened wide and when that happens, well, they may as well be the gates of hell.
This story is sure to be continued, though the likelihood of US markets continuing their collapse in a straight line is not prominent. The powers that have been running the markets for the last three years will paper this over on Monday and attempt to contain the damage. It will not do them any good, as the geopolitical issues will not hide to corruption and illiquid conditions of the major banking institutions, to say nothing of the government which supports them and adds debt and deficits by the minute.
No, this is only the beginning of more lies and stupidity.
Egypt is only the most prescient of what appears to be a global movement to oust corrupt governments. It may soon reach Asian nations, then Europe and eventually the United States, run by the cruelest and most virulent oligarchs in the world.
But first, the thieves must flee with their loot, as they did today, sending shares on the major indices to their steepest losses in over six months, an event long overdue. Certainly, there is more blood to be let on Wall Street, while nations around the globe yearn to be free.
A conversation last night with a friend went something like this:
Friend: The countries want democratic government.
Me: So do Americans.
Both: (Nervous laughter.)
It is true, however, that many Americans - mostly middle class types - feel shortchanged and without a true voice for their condition in the halls of the mighty. It is time that Americans awaken from their iPad-and-TV-induced stupor and seek change. We no longer wish to be ruled by a separate class of bankers and politicians who play by different rules and govern by different laws than those we are subject to. It is time for real examination of the issues of our banking class and prosecutions of those who caused the collapse of 2008 and extend its worst effects even to the present.
Perhaps the sell-off today was keyed by events in the geo-political realm, or perhaps there's more to it, under the surface. Maybe there's little will to invest in companies based in the US which pay little to no taxes and employ nary an American citizen. Perhaps the 3.2% GDP estimate announced today was not nearly enough for a population seeking better answers, better results, from their leaders.
Whatever is the case, it surely appears to be only the beginning. Our first taste of the fruits of global revolt will be gasoline at $3.50 a gallon, then $4, then more. What will be the tipping point in America? Will it come before the government shuts down the internet, as happened today in Egypt? Only time will tell.
Dow 11,823.70, -166.13 (1.39%)
NASDAQ 2,686.89, -68.39 (2.48%)
S&P 500 1,276.34, -23.20 (1.79%)
NYSE Composite 8,062.64, -144.42 (1.76%)
Declining issues led advancers by a mammoth margin, 5397-1195. The NASDAQ was witness to 101 new highs and 24 new lows. On the NYSE, there were 148 new highs and only 19 new lows. These figures are unsurprising, considering how over-inflated stocks have become in the first month of 2011.
Volume was the key to where this is all heading. It was the highest volume day of the year and probably the highest in the last three months, all heading lower. Big volume on a big losing day makes bulls turn tail and run, which is exactly what happened today.
NASDAQ Volume 2,393,749,000
NYSE Volume 6,313,925,500
The commodity complex was also highlighted as NYMEX crude gained $3.70, to $89.34, mostly in concert with the developments in the oil-rich region of North Africa and fears that the Suez Canal might be shut down. Gold reappeared as a safe haven, rising $22.30, to $1,340.70. Silver also abruptly ended its month-long decline, adding 89 cents, to $27.92.
As far as the markets are concerned, the Dow 12,000 hats can be safely put away for another few years and the cheerleading crony capitalist reporters can begin acting more like adults for a change (though we doubt this will happen).
Logically, the end to economic catastrophes, such as the one which began in 2008 and has not ended, is war, and that may be what we're seeing the beginning of in Egypt and surrounding nations. Sooner or later, the Egyptian side of the blockade of the Gaza Strip will be opened wide and when that happens, well, they may as well be the gates of hell.
This story is sure to be continued, though the likelihood of US markets continuing their collapse in a straight line is not prominent. The powers that have been running the markets for the last three years will paper this over on Monday and attempt to contain the damage. It will not do them any good, as the geopolitical issues will not hide to corruption and illiquid conditions of the major banking institutions, to say nothing of the government which supports them and adds debt and deficits by the minute.
No, this is only the beginning of more lies and stupidity.
Thursday, January 27, 2011
Unemployment Up, Durable Orders Slip, But Markets Stable
Just in case anybody thinks that Bernanke's QE2 program isn't working perfectly (in other words, shoveling billions of dollars to the nation's largest banks), a quick recap of today's headlines and the resultant market moves should suffice to argue that US stock markets have permanently divorced themselves from reality.
Initial jobless claims came in at 454,000 in the most recent week. The market was looking for 400,000. Oops! The official reason for the rise from last week's reported 403,000, and the highest number since October was snow. OK, we're officially not buying that.
Durable orders for December declined by 2.5%. Analysts were expecting a gain of 1.5%. After all, Christmas falls in December, and everybody got a Lexus, right?
As tensions mount in Egypt in advance of tomorrow's largest protest to date - led by former IAEA chief Mohamed ElBaradei - the US State Department has advised president Hosni Mubarak to remain calm, though the days of the strongman leader seem to be numbered. In the aftermath of the Tunesian revolution, Algeria and Yemen, along with Egypt, appear to be on the brink of revolt.
Apparently, this spate of less-than-encouraging news was insufficient for equity investors to seek investments with less risk. Maybe they - or the computers controlling the trading - are standing pat, awaiting the first announcement of 4th quarter GDP tomorrow at 8:30 am. The official estimate is that the US economy grew at a 3.8% annualized rate, after the third quarter came in at 2.6%. Those hoping for a strong GDP number may wish to recall that residential real estate nearly ground to a halt in the 4th quarter, due to the fruadclosure scandal and that's not a big positive. The number ought to be interesting, just to see how far the government will go to convince everyone that the recovery is real and continuing, when the facts say the recession never actually ended and the only place in the country feeling particularly good about things in in lower Manhattan.
Dow 11,989.83, +4.39 (0.04%)
NASDAQ 2,755.28, +15.78 (0.58%)
S&P 500 1,299.54, +2.91 (0.22%)
NYSE Composite 8,207.06, +13.42 (0.16%)
Major indices were all marginally higher on the day, though the psychological barriers at Dow 12,000 and S&P 1300 remained difficult to breach. Both indices briefly advanced into the beyond, but generally flatlined below those levels for the bulk of the session. Internals suggest an unconvinced market sentiment, with 3454 stocks advancing and 2964 declining.
There were 159 new highs and 14 new lows on the NASDAQ, while on the NYSE new highs led new lows, 252-9. Volume was slight, as usual.
NASDAQ Volume 2,033,972,000
NYSE Volume 4,773,436,000
Commodities were mostly beaten down, as NYMEX crude dipped another $1.69, continuing the recent trend, to $85.64. Gold also remained under pressure, dropping another $14.60, to $1,318.40, back to October, 2010 levels. Silver dropped 10 cents, to $27.03, well off the December highs of $31.
The disconnect between the markets and reality is palpable. The wheels came off a long time ago, but the sputtering US economy has yet to be reflected by the Fed-fueled stock markets. Something's got to give, and when it does, it should be big.
After hours, Amazon (AMZN) released 4th quarter earnings and investors were not amused, sending the stock down to 166.74 a loss of 17.71 (-9.60%) at 5:00 pm EDT.
Initial jobless claims came in at 454,000 in the most recent week. The market was looking for 400,000. Oops! The official reason for the rise from last week's reported 403,000, and the highest number since October was snow. OK, we're officially not buying that.
Durable orders for December declined by 2.5%. Analysts were expecting a gain of 1.5%. After all, Christmas falls in December, and everybody got a Lexus, right?
As tensions mount in Egypt in advance of tomorrow's largest protest to date - led by former IAEA chief Mohamed ElBaradei - the US State Department has advised president Hosni Mubarak to remain calm, though the days of the strongman leader seem to be numbered. In the aftermath of the Tunesian revolution, Algeria and Yemen, along with Egypt, appear to be on the brink of revolt.
Apparently, this spate of less-than-encouraging news was insufficient for equity investors to seek investments with less risk. Maybe they - or the computers controlling the trading - are standing pat, awaiting the first announcement of 4th quarter GDP tomorrow at 8:30 am. The official estimate is that the US economy grew at a 3.8% annualized rate, after the third quarter came in at 2.6%. Those hoping for a strong GDP number may wish to recall that residential real estate nearly ground to a halt in the 4th quarter, due to the fruadclosure scandal and that's not a big positive. The number ought to be interesting, just to see how far the government will go to convince everyone that the recovery is real and continuing, when the facts say the recession never actually ended and the only place in the country feeling particularly good about things in in lower Manhattan.
Dow 11,989.83, +4.39 (0.04%)
NASDAQ 2,755.28, +15.78 (0.58%)
S&P 500 1,299.54, +2.91 (0.22%)
NYSE Composite 8,207.06, +13.42 (0.16%)
Major indices were all marginally higher on the day, though the psychological barriers at Dow 12,000 and S&P 1300 remained difficult to breach. Both indices briefly advanced into the beyond, but generally flatlined below those levels for the bulk of the session. Internals suggest an unconvinced market sentiment, with 3454 stocks advancing and 2964 declining.
There were 159 new highs and 14 new lows on the NASDAQ, while on the NYSE new highs led new lows, 252-9. Volume was slight, as usual.
NASDAQ Volume 2,033,972,000
NYSE Volume 4,773,436,000
Commodities were mostly beaten down, as NYMEX crude dipped another $1.69, continuing the recent trend, to $85.64. Gold also remained under pressure, dropping another $14.60, to $1,318.40, back to October, 2010 levels. Silver dropped 10 cents, to $27.03, well off the December highs of $31.
The disconnect between the markets and reality is palpable. The wheels came off a long time ago, but the sputtering US economy has yet to be reflected by the Fed-fueled stock markets. Something's got to give, and when it does, it should be big.
After hours, Amazon (AMZN) released 4th quarter earnings and investors were not amused, sending the stock down to 166.74 a loss of 17.71 (-9.60%) at 5:00 pm EDT.
Subscribe to:
Posts (Atom)
Posts
