With the continuing debt crisis in Europe taking an unusual day of rest, US stocks opened on the upside but could not maintain momentum as stalled talks over the US debt ceiling weighed heavily.
It's almost a certainty that the government clowns in Washington will come to a compromise solution similar to the budget deal in May - too little, almost too late, and sure to not address the most pressing US issues, those being housing, jobs and our very own burgeoning debt crisis.
With both sides still at odds over the scope and details, the nation is paralyzed by indecision, regulations and a tax policy that has - like the rest of the federal government - gone off the rails.
In Italy, austerity measures were passed, allowing the Italian government to issue much-needed 5-and-15-year bonds to finance continuing operations. The plan has many facets, and should (though it won't) serve as a blueprint for US measures.
That did not, however, help traders in US equities, which has this week given back much of the gains made over last week's spectacular five-day rally. Markets hate uncertainty, and even in the midst of earnings season, US stocks are very much a mixed bag of tricks, teetering on the brink of collapse.
It was a fine day for Google (GOOG), though, as the giant internet search and service company boasted profits well above Street estimates. Reporting after the closing bell, the company reported $6.92 billion in net revenue in the second quarter of 2011 and non-GAAP earnings per share of $8.74 on expectations of $6.54 billion in revenue and earnings per share of $7.87. The stock was trading up 12% in after-hours, up more than 63 points.
Dow 12,437.12, -54.49 (0.44%)
NASDAQ 2,762.67, -34.25 (1.22%)
S&P 500 1,308.87, -8.85 (0.67%)
NYSE Composite 8,191.13, -55.67 (0.68%)
Declining issues beat back advancers, 5019-1495. Though the headline numbers were hardly spectacular, except for the NASDAQ, which lost 1.22% on the day, selling was broad-based. NASDAQ stocks showed 56 new highs and 35 new lows, while the NYSE posted 46 new highs and 45 new lows. The combined total spread of 102 new highs and 80 new lows continues to deteriorate. Volume on the day was relatively solid, though that should be bearish for investors.
NASDAQ Volume 1,923,346,875
NYSE Volume 4,298,657,500
Economic data was mixed and uninspiring. Initial unemployment claims dropped to 405,000, though it was the 16th consecutive week above 400,000, another non-encouraging sign. Retail sales for June came in at plus 0.1%, and the PPI actually fell 0.4%, though the core number, which excludes food and energy, rose 0.3%. Business inventories were up 1.0% in May, as companies cited slack demand.
Commodities were also mixed. WTI crude oil fell sharply, down $2.36, to $95.69. Gold, though, set another new record high, gaining $3.40, to $1,589.30. Silver added 54 cents, gaining to $38.69 per ounce.
With the week drawing to a quick conclusion, Friday's data features the June CPI reading, the Michigan survey of consumer confidence and earnings from Citigroup (C).
Showing posts with label Google. Show all posts
Showing posts with label Google. Show all posts
Thursday, July 14, 2011
Friday, April 15, 2011
Uppers and Downers
It's official. This stock market is a yo-yo without anyone pulling the string. It goes whatever direction it (or somebody) pleases, mostly up when it's supposed to be down and vice versa.
Though stocks finished with gains for the day, they were down for the week, but that doesn't really matter in the grand scheme. One would assume, with Google getting smacked down 47.81 points (8.24%) and Bank of America (BAC, 12.82, -0.31, -2.36%) missing EPS estimates by 11 cents, all of the indices would have gotten the clue and headed toward the exits.
But, though it looked like that might be the case early in the day, by the closing bell the major exchanges were showing broad gains, despite obvious signs of a weakening, or at least, stumbling, economy.
The best play has been to not fight the Fed, which continues to mint money and send it out through its proxies, the Primary Dealers, into the market, and that's probably what's driven the last eight months of gains. Advice might include steering clear of equities until the end of QE2, some time in June.
Dow 12,341.83, +56.68 (0.46%)
NASDAQ 2,764.65, +4.43 (0.16%)
S&P 500 1,319.68, +5.16 (0.39%)
NYSE Composite 8,400.31, +26.15 (0.31%)
Gainers outpaced losers, 4353-2152. On the NASDAQ, new highs took over the top spot with 84 new highs and 33 new lows. On the NYSE, there were 108 new highs and 14 new lows. Volume? No, none, non-existent.
NASDAQ Volume 1,794,544,375
NYSE Volume 4,331,161,000
Oil was up again, gaining $1.55, to $109.66. Gold surged $13.60, to $1,486.00, and silver continued its monumental climb, up 91 cents, to $42.57. Gold is at all-time highs and silver at 31-year highs, fast approaching the all-time high of $50/ounce back in the heady days of the Hunt Brothers, circa 1980.
A normal market would not have oil, gold and silver all up and equities rising as well, so the only conclusion to draw is that this is no ordinary market. It's very unusual, to say the least, though stocks still can't seem to do anything more than a Texas two-step, one forward, two back.
Commodity traders, however, have had a field day of late, and for gold and silver bugs and bugettes, they've had a great run for over a decade. In 2000, gold was under $300 and silver traded for $5 or $6 per ounce. The PMs have been the best investments, eleven years running, with no end in sight.
Though stocks finished with gains for the day, they were down for the week, but that doesn't really matter in the grand scheme. One would assume, with Google getting smacked down 47.81 points (8.24%) and Bank of America (BAC, 12.82, -0.31, -2.36%) missing EPS estimates by 11 cents, all of the indices would have gotten the clue and headed toward the exits.
But, though it looked like that might be the case early in the day, by the closing bell the major exchanges were showing broad gains, despite obvious signs of a weakening, or at least, stumbling, economy.
The best play has been to not fight the Fed, which continues to mint money and send it out through its proxies, the Primary Dealers, into the market, and that's probably what's driven the last eight months of gains. Advice might include steering clear of equities until the end of QE2, some time in June.
Dow 12,341.83, +56.68 (0.46%)
NASDAQ 2,764.65, +4.43 (0.16%)
S&P 500 1,319.68, +5.16 (0.39%)
NYSE Composite 8,400.31, +26.15 (0.31%)
Gainers outpaced losers, 4353-2152. On the NASDAQ, new highs took over the top spot with 84 new highs and 33 new lows. On the NYSE, there were 108 new highs and 14 new lows. Volume? No, none, non-existent.
NASDAQ Volume 1,794,544,375
NYSE Volume 4,331,161,000
Oil was up again, gaining $1.55, to $109.66. Gold surged $13.60, to $1,486.00, and silver continued its monumental climb, up 91 cents, to $42.57. Gold is at all-time highs and silver at 31-year highs, fast approaching the all-time high of $50/ounce back in the heady days of the Hunt Brothers, circa 1980.
A normal market would not have oil, gold and silver all up and equities rising as well, so the only conclusion to draw is that this is no ordinary market. It's very unusual, to say the least, though stocks still can't seem to do anything more than a Texas two-step, one forward, two back.
Commodity traders, however, have had a field day of late, and for gold and silver bugs and bugettes, they've had a great run for over a decade. In 2000, gold was under $300 and silver traded for $5 or $6 per ounce. The PMs have been the best investments, eleven years running, with no end in sight.
Friday, July 16, 2010
SMASHING! Stock Hammered as Banks, Google Disappoint
The first week of second quarter earnings season actually came to an abrupt end on Tuesday, when all the major indices topped out after a six day rally. Wednesday and Thursday were flat-lined, as nervous investors jockeyed in and out of equities. With options expiring on Friday, the stage was set for a near-panic sell-off, and it was a doozy.
When Bank of America (BAC) and Citigroup (C) followed JP Morgan Chase's lead with unsettling results prior to Friday's open, the trade was set and sellers pounded stocks in the opening minutes. Just before 10:00 am, the university of Michigan's Consumer Sentiment Index delivered another in a series of economic blows, as the gauge fell from 76.0 in June, to 66.5 for the current month. The rout was on, as the Dow soon dipped down 200 points from the previous close.
There was no relief for stockholders in a relentless grind lower which lasted through the end of the session.
For the week, all f the major indices ended with losses, as the Dow finished 100 points lower, the NASDAQ shed 17 points, the S&P 500 surrendered 13 points and the NYSE Composite dropped 99 points.
Dow 10,097.90, -261.41 (2.52%)
NASDAQ 2,179.05, -70.03 (3.11%)
S&P 500 1,064.88, -31.60 (2.88%)
NYSE Composite 6,709.51, -207.30 (3.00%)
As expected, internals told the same stark story. Decliners pounded advancers, 5321-1154, with losers beating winners by a 7:1 margin on the NASDAQ. New highs managed to stay ahead of new lows, 150-124, though that trend is weakening and about to roll over again. Volume was not spectacular, though it was far better then the previous three sessions.
NASDAQ Volume 2,183,108,750
NYSE Volume 6,016,648,500
Stock investors were not alone in their desperation. Commodities were also pummeled in concert with the CPI reading (0.2). Crude for August delivery fell another 61 cents, to $76.01. Gold continued its recent shaky form, losing $20.10, to $1,188.00. Silver followed that lead, dropping 57 cents, to $17.77.
Gold hit its lowest level since May, though it is still well above its 200-day moving average. Silver continues to flirt with its 200-day MA, touching it again today. Any further deterioration in precious metals prices might just spread the panic through the commodity space in a deflationary sell-off.
Bank of America was the Dow's worst performer, losing 1.41, to 13.98, a decline of 9%. Citigroup fell 26 cents, to 3.90, a 6.25% loss. Google, after announcing a slight miss on earnings per share Thursday after the close, was punished with a 7$ decline, off 34.41, to 459.61.
All of this in the middle of earnings season does not bode well for bulls. The next two weeks will be interesting, to say the least, and challenging to see where any support might appear.
When Bank of America (BAC) and Citigroup (C) followed JP Morgan Chase's lead with unsettling results prior to Friday's open, the trade was set and sellers pounded stocks in the opening minutes. Just before 10:00 am, the university of Michigan's Consumer Sentiment Index delivered another in a series of economic blows, as the gauge fell from 76.0 in June, to 66.5 for the current month. The rout was on, as the Dow soon dipped down 200 points from the previous close.
There was no relief for stockholders in a relentless grind lower which lasted through the end of the session.
For the week, all f the major indices ended with losses, as the Dow finished 100 points lower, the NASDAQ shed 17 points, the S&P 500 surrendered 13 points and the NYSE Composite dropped 99 points.
Dow 10,097.90, -261.41 (2.52%)
NASDAQ 2,179.05, -70.03 (3.11%)
S&P 500 1,064.88, -31.60 (2.88%)
NYSE Composite 6,709.51, -207.30 (3.00%)
As expected, internals told the same stark story. Decliners pounded advancers, 5321-1154, with losers beating winners by a 7:1 margin on the NASDAQ. New highs managed to stay ahead of new lows, 150-124, though that trend is weakening and about to roll over again. Volume was not spectacular, though it was far better then the previous three sessions.
NASDAQ Volume 2,183,108,750
NYSE Volume 6,016,648,500
Stock investors were not alone in their desperation. Commodities were also pummeled in concert with the CPI reading (0.2). Crude for August delivery fell another 61 cents, to $76.01. Gold continued its recent shaky form, losing $20.10, to $1,188.00. Silver followed that lead, dropping 57 cents, to $17.77.
Gold hit its lowest level since May, though it is still well above its 200-day moving average. Silver continues to flirt with its 200-day MA, touching it again today. Any further deterioration in precious metals prices might just spread the panic through the commodity space in a deflationary sell-off.
Bank of America was the Dow's worst performer, losing 1.41, to 13.98, a decline of 9%. Citigroup fell 26 cents, to 3.90, a 6.25% loss. Google, after announcing a slight miss on earnings per share Thursday after the close, was punished with a 7$ decline, off 34.41, to 459.61.
All of this in the middle of earnings season does not bode well for bulls. The next two weeks will be interesting, to say the least, and challenging to see where any support might appear.
Label:
Andrew Cuomo,
BAC,
Bank of America,
CitiGroup,
CPI,
GOOG,
Google
Thursday, July 15, 2010
Yes, That Was the End of the Rally
As queried yesterday, the split decision by the major indices, resulting in paltry gains and losses across the board, appears to have signaled at least a pause of optimism for the markets.
News flows were both good and bad (depending on one's perspective) prior to the open, highlighted by JP Morgan Chase (JPM) trying to get away with reporting second quarter results which included unusual one-time gains. The usual protocol is for one-time charges or gains to be stripped out, as the vast majority of analysts predict on such a basis.
The Financial Times reports that JPM's earnings "Signal end of Wall St. rebound" and even Wall Street darling CEO Jamie Dimon couldn't get away with reporting $1.09 per share, when analysts were seeking 70 cents, excluding one-time charges. JPM decided to pad earnings by lowering their loan-loss reserves by $1.5 billion. Stripping those out, the venerable House of Morgan made 75 cents per share in the quarter, though there were likely other crafty accounting tricks employed.
For their efforts, investors sold off the nation's second-largest bank to the tune of a little more than a point at the lows of the day. When all was said and done, however, and the Wall Street connivers couldn't stand a little decline, all stocks were boosted in a furious final half-hour, which saw the Dow gain about 70 points and JP Morgan close 11 cents higher on the day, closing at 40.46.
The final push was attributed to passage of the long-overdue Financial Regulation bill by the Senate, but stocks finished mixed again. As the Dow and NASDAQ finished higher on Wednesday, today's two winners were the S&P 500 and NYSE Composite, a complete reversal. So, for the past two days, all the markets did was vaporize a lot of money.
Also prior to the open Initial jobless claims for the week reportedly totaled 429,000, down 29,000 from the previous week. Following last week's precipitous drop, continuing claims climbed by almost 250,000 to 4.68 million. Separately, the Producer Price Index (PPI) for June fell 0.5% month-over-month, another sure sign that deflation is well-entrenched.
The NY Fed Empire Manufacturing Index fell to 5.08 in July, from 19.57 in June, a seven-month low.
Industrial production gained 0.1% in June, while Capacity Utilization stalled out at 74.1% over the same span. All of these indicators cause stocks to sell off at the open, but career further and deeper into the red after 10:00 am when the Philadelphia Fed announced that their manufacturing index fell from 8.0 in June to 5.0 in July.
If there isn't a double-dip or recession headed our way, you sure can't tell it from the spate of negative statistics sprouting from every corner of the economy.
Dow 10,359.31, -7.41 (0.07%)
NASDAQ 2,249.08, -0.76 (0.03%)
S&P 500 1,096.48, +1.31 (0.12%)
NYSE Composite 6,916.81, +13.45 (0.19%)
Decliners again led advancing issues, 3601-2789, and new highs remained ahead of new lows, 172-71. Volume was weak, owing to the uncertainty of the marketplace.
NASDAQ Volume 1,980,588,625
NYSE Volume 5,214,455,500
Crude oil sold off, losing 66 cents, to $76.62, but gold was higher once more, up $1.30, to $1,208.10. Silver gained 7 cents, to $18.35. All traders in commodities are due for a rude awakening at some point, when deflationary forces can no longer be contained and demand eventually falls off a table. Those not in cash (unlike myself and ardent followers of this blog) should begin shedding all semi-liquid assets, including futures contracts, as all signs point to a resumption of the bear market, though this time bottoms could be severe - far lower than expected.
After the final bell, Google (GOOG) was ravaged as it missed analyst expectations of $6.52, by seven cents, or $6.45 per share. To understand the absurdity of Wall Street, one must realize that Google is among the most profitable companies in the world. GAAP operating income (revenues after expenses) was $2.37 billion, which is a pretty good sum of money for any three-month period. Nonetheless, some traders saw fit to wallop the stock down more than 20 points in after hours trading, or, by more than 4%.
Maybe it was a touch overvalued at $494 a share, or, 22 times earnings. Live and learn.
This earnings season can't be over with already, can it? We've just gotten started. There are sure to be wild gyrations tomorrow on options expiration and over the next two weeks, which will only be fun if you're winning.
News flows were both good and bad (depending on one's perspective) prior to the open, highlighted by JP Morgan Chase (JPM) trying to get away with reporting second quarter results which included unusual one-time gains. The usual protocol is for one-time charges or gains to be stripped out, as the vast majority of analysts predict on such a basis.
The Financial Times reports that JPM's earnings "Signal end of Wall St. rebound" and even Wall Street darling CEO Jamie Dimon couldn't get away with reporting $1.09 per share, when analysts were seeking 70 cents, excluding one-time charges. JPM decided to pad earnings by lowering their loan-loss reserves by $1.5 billion. Stripping those out, the venerable House of Morgan made 75 cents per share in the quarter, though there were likely other crafty accounting tricks employed.
For their efforts, investors sold off the nation's second-largest bank to the tune of a little more than a point at the lows of the day. When all was said and done, however, and the Wall Street connivers couldn't stand a little decline, all stocks were boosted in a furious final half-hour, which saw the Dow gain about 70 points and JP Morgan close 11 cents higher on the day, closing at 40.46.
The final push was attributed to passage of the long-overdue Financial Regulation bill by the Senate, but stocks finished mixed again. As the Dow and NASDAQ finished higher on Wednesday, today's two winners were the S&P 500 and NYSE Composite, a complete reversal. So, for the past two days, all the markets did was vaporize a lot of money.
Also prior to the open Initial jobless claims for the week reportedly totaled 429,000, down 29,000 from the previous week. Following last week's precipitous drop, continuing claims climbed by almost 250,000 to 4.68 million. Separately, the Producer Price Index (PPI) for June fell 0.5% month-over-month, another sure sign that deflation is well-entrenched.
The NY Fed Empire Manufacturing Index fell to 5.08 in July, from 19.57 in June, a seven-month low.
Industrial production gained 0.1% in June, while Capacity Utilization stalled out at 74.1% over the same span. All of these indicators cause stocks to sell off at the open, but career further and deeper into the red after 10:00 am when the Philadelphia Fed announced that their manufacturing index fell from 8.0 in June to 5.0 in July.
If there isn't a double-dip or recession headed our way, you sure can't tell it from the spate of negative statistics sprouting from every corner of the economy.
Dow 10,359.31, -7.41 (0.07%)
NASDAQ 2,249.08, -0.76 (0.03%)
S&P 500 1,096.48, +1.31 (0.12%)
NYSE Composite 6,916.81, +13.45 (0.19%)
Decliners again led advancing issues, 3601-2789, and new highs remained ahead of new lows, 172-71. Volume was weak, owing to the uncertainty of the marketplace.
NASDAQ Volume 1,980,588,625
NYSE Volume 5,214,455,500
Crude oil sold off, losing 66 cents, to $76.62, but gold was higher once more, up $1.30, to $1,208.10. Silver gained 7 cents, to $18.35. All traders in commodities are due for a rude awakening at some point, when deflationary forces can no longer be contained and demand eventually falls off a table. Those not in cash (unlike myself and ardent followers of this blog) should begin shedding all semi-liquid assets, including futures contracts, as all signs point to a resumption of the bear market, though this time bottoms could be severe - far lower than expected.
After the final bell, Google (GOOG) was ravaged as it missed analyst expectations of $6.52, by seven cents, or $6.45 per share. To understand the absurdity of Wall Street, one must realize that Google is among the most profitable companies in the world. GAAP operating income (revenues after expenses) was $2.37 billion, which is a pretty good sum of money for any three-month period. Nonetheless, some traders saw fit to wallop the stock down more than 20 points in after hours trading, or, by more than 4%.
Maybe it was a touch overvalued at $494 a share, or, 22 times earnings. Live and learn.
This earnings season can't be over with already, can it? We've just gotten started. There are sure to be wild gyrations tomorrow on options expiration and over the next two weeks, which will only be fun if you're winning.
Label:
deflation,
GOOG,
Google,
JP Morgan Chase,
JPM
Thursday, January 21, 2010
Government Greases Skids for Wall Street Sell-Off
Onerous new regulations (Actually, they're only onerous if you're a rich banker. Otherwise, they're actually sensible) limiting the kinds of risks banks may take with federally-insured deposits gave the rich and powerful the perfect opportunity to take profits and blame any market and economic fallout on the Obama administration and congress.
The 213-point slide on the Dow was probably less related to banking than it was tied to initial unemployment claims, which rocketed to 482,000 for the most recent reporting period, from a previous reading of 446,000. Continuing claims held steady at 4,599,000 slackers still collecting unemployment insurance and keeping the fragile economy from falling off a cliff. While Wall Street may deride these individuals, the companies represented by stocks traded on the various exchanges have yet to even whisper about new hiring.
It's a scenario that many have predicted and is about to come true. Without new jobs for those millions of unemployed, underemployed and discouraged workers, major companies have squeezed themselves into a box without a box cutter. As earnings for the 4th quarter of 2009 roll out, investors will be seeking top-line (revenue) growth, but are likely to get more of the same cost-cutting, belt-tightening by which companies have produced profits for the past 9 months. The economy is just churning, not growing, and the natives are getting restless.
Today's losses in the major indices erased the gains thus far in 2010. Only the S&P 500 closed above where it ended 2009, but only by a point and change.
To get an idea of the kind of mood that is just beginning to pervade Wall Street, consider the knockout numbers reported by Google (GOOG), just after the close. The search giant beat revenue and profit estimates handily. The initial reaction was a 22-point sell-off just after these dazzling results were announced. This kind of behavior was easily predictable. With stocks at nose-bleed levels, earnings will not matter to holders of stock. They've already determined to sell, either just prior to or just after a company announces, so unless the numbers are simply out-of-this-world, expect all stocks to get roughly the same treatment.
Now that Wall Street has gotten over the giddiness of a new year, the hard, cold reality of an economy unmoved by stimulus and bailouts is knocking stocks for a loop.
Overnight, China released 4th quarter GDP numbers, showing a stunning annualized growth rate of 10.7%. Investors in America are concerned that China may begin reining in its own growth in order to stave off inflation, which is a major concern. While America and Europe wallow in the aftermath of the 2008 financial meltdown, the Chinese are eating their lunch, and they're not using chop-sticks.
Dow 10,389.88, -213.27 (2.01%)
NASDAQ 2,265.70, -25.55 (1.12%)
S&P 500 1,116.48, -21.56 (1.89%)
NYSE Composite 7,174.46, -155.37 (2.12%)
Losers beat winners, 5027-1539, and new highs outnumbered new lows, 284-55. Volume was off-the-charts to the high side, an indication that the rout has just begun. Selling should continue nearly unabated through the next 3-5 weeks, unless economic data indicates the economy is growing well beyond tepid expectations. It's not, so don't get your hopes up. Bears are becoming more emboldened every day.
NYSE Volume 7,747,543,000
NASDAQ Volume 2,819,241,250
Losses were not limited to stocks. Commodities also took widespread hits as another wave of deflation distress wafts through the markets. Oil dropped $1.66, to $76.08. Gold lost $9.60, to $1,103.00. Silver followed it down, losing 29 cents, to $17.60.
Lately, I've taken to offer up alternatives to the usual Wall Street fare, the ups and downs of daily life in the dithering world of stocks, but today just seemed to legitimize my thinking, that stocks are not for everyone, especially those without the cushion necessary to take sustained losses and ride out long positions. The market was overbought and due for a turn-back, so I'm not taking any credit for soothsaying. It was pretty easy to see.
Cash in your pocket today was the big winner. Just like it was yesterday and probably will be in coming days, weeks and months because the economic drop dead party is just getting going. The system, built on bad loans and bailouts, is barely sustainable under current conditions.
Relax. Have a drink. Have a smoke. America is still a pretty good country.
The 213-point slide on the Dow was probably less related to banking than it was tied to initial unemployment claims, which rocketed to 482,000 for the most recent reporting period, from a previous reading of 446,000. Continuing claims held steady at 4,599,000 slackers still collecting unemployment insurance and keeping the fragile economy from falling off a cliff. While Wall Street may deride these individuals, the companies represented by stocks traded on the various exchanges have yet to even whisper about new hiring.
It's a scenario that many have predicted and is about to come true. Without new jobs for those millions of unemployed, underemployed and discouraged workers, major companies have squeezed themselves into a box without a box cutter. As earnings for the 4th quarter of 2009 roll out, investors will be seeking top-line (revenue) growth, but are likely to get more of the same cost-cutting, belt-tightening by which companies have produced profits for the past 9 months. The economy is just churning, not growing, and the natives are getting restless.
Today's losses in the major indices erased the gains thus far in 2010. Only the S&P 500 closed above where it ended 2009, but only by a point and change.
To get an idea of the kind of mood that is just beginning to pervade Wall Street, consider the knockout numbers reported by Google (GOOG), just after the close. The search giant beat revenue and profit estimates handily. The initial reaction was a 22-point sell-off just after these dazzling results were announced. This kind of behavior was easily predictable. With stocks at nose-bleed levels, earnings will not matter to holders of stock. They've already determined to sell, either just prior to or just after a company announces, so unless the numbers are simply out-of-this-world, expect all stocks to get roughly the same treatment.
Now that Wall Street has gotten over the giddiness of a new year, the hard, cold reality of an economy unmoved by stimulus and bailouts is knocking stocks for a loop.
Overnight, China released 4th quarter GDP numbers, showing a stunning annualized growth rate of 10.7%. Investors in America are concerned that China may begin reining in its own growth in order to stave off inflation, which is a major concern. While America and Europe wallow in the aftermath of the 2008 financial meltdown, the Chinese are eating their lunch, and they're not using chop-sticks.
Dow 10,389.88, -213.27 (2.01%)
NASDAQ 2,265.70, -25.55 (1.12%)
S&P 500 1,116.48, -21.56 (1.89%)
NYSE Composite 7,174.46, -155.37 (2.12%)
Losers beat winners, 5027-1539, and new highs outnumbered new lows, 284-55. Volume was off-the-charts to the high side, an indication that the rout has just begun. Selling should continue nearly unabated through the next 3-5 weeks, unless economic data indicates the economy is growing well beyond tepid expectations. It's not, so don't get your hopes up. Bears are becoming more emboldened every day.
NYSE Volume 7,747,543,000
NASDAQ Volume 2,819,241,250
Losses were not limited to stocks. Commodities also took widespread hits as another wave of deflation distress wafts through the markets. Oil dropped $1.66, to $76.08. Gold lost $9.60, to $1,103.00. Silver followed it down, losing 29 cents, to $17.60.
Lately, I've taken to offer up alternatives to the usual Wall Street fare, the ups and downs of daily life in the dithering world of stocks, but today just seemed to legitimize my thinking, that stocks are not for everyone, especially those without the cushion necessary to take sustained losses and ride out long positions. The market was overbought and due for a turn-back, so I'm not taking any credit for soothsaying. It was pretty easy to see.
Cash in your pocket today was the big winner. Just like it was yesterday and probably will be in coming days, weeks and months because the economic drop dead party is just getting going. The system, built on bad loans and bailouts, is barely sustainable under current conditions.
Relax. Have a drink. Have a smoke. America is still a pretty good country.
Wednesday, December 23, 2009
Leveraging the Mobile Internet and Social Media
Leveraging the power of the mobile smart phone market, the internet and social media are key elements of a number of emerging new businesses, some of which could evolve into the "next big thing."
One such company is Digital Development Partners, Inc., a mid-tier start-up company (already listed on the OTCBB under ticker symbol DGDM) with a flagship platform under development which promises to leverage the mobile internet and social media with online couponing for merchants of all sizes.
Already under development is their flagship YuDeal.com platform, set for pilot launch in Q2 2010. The company plans to launch the pilot in Asheville, NC and quickly roll out in cities nationwide. YuDeal integrates social networking, real time consumer discounts and advertiser analytics to help advertisers identify and quantify a "Real Time" advertising campaign.
While details are as still sketchy, it would appear that Yudeal.com will offer small to medium-sized merchants competitive pricing to market on the platform, which will probably appear as an iPhone App (and also be compatible with other smart phones) for consumers, accessible from either a mobile phone or by computer.
The company's stated goal is to completely change the way advertisers use coupons in much the same way Google changed advertising on the internet with their branded AdWords and AdSense text-ad platform.
DGDM began trading in November and is currently priced around $1 per share.
Digital Development Partners, Inc. (OTCBB: DGDM)
One such company is Digital Development Partners, Inc., a mid-tier start-up company (already listed on the OTCBB under ticker symbol DGDM) with a flagship platform under development which promises to leverage the mobile internet and social media with online couponing for merchants of all sizes.
Already under development is their flagship YuDeal.com platform, set for pilot launch in Q2 2010. The company plans to launch the pilot in Asheville, NC and quickly roll out in cities nationwide. YuDeal integrates social networking, real time consumer discounts and advertiser analytics to help advertisers identify and quantify a "Real Time" advertising campaign.
While details are as still sketchy, it would appear that Yudeal.com will offer small to medium-sized merchants competitive pricing to market on the platform, which will probably appear as an iPhone App (and also be compatible with other smart phones) for consumers, accessible from either a mobile phone or by computer.
The company's stated goal is to completely change the way advertisers use coupons in much the same way Google changed advertising on the internet with their branded AdWords and AdSense text-ad platform.
DGDM began trading in November and is currently priced around $1 per share.
Digital Development Partners, Inc. (OTCBB: DGDM)
Label:
DGDM,
Google,
social media
Monday, December 21, 2009
Deals, Upgrades Boost Stocks; NASDAQ Breaks Out
Led by news that Sanofi-Aventis (SNY) will buy retail health products firm Chattem (CHTT) for $1.9 billion and upgrades of key Dow components Intel (INTC) and Alcoa (AA) helped stocks kick off the short Christmas week with a bang.
Stocks soared right off the opening bell and held onto most of their gains through a somewhat listless session, though there was plenty of M&A news to keep participants interested. Besides Alcoa surging nearly 8% at the close, merger mania seems to have overtaken the health care sector, as pharma firms flush with cash seek to expand into the consumer market.
With the US senate voting to suspend debate on the health care bill, the major drug companies seem confident they have wrung the very best deal they could out of their congressional puppets. Many firms in the sector have been up sharply in recent days, including Dow components Merck (MRK) and Pfizer (PFE), considering the reform measure to be nothing more than bluster and Democratic party PR, void of substantive change. Thus, big pharma and health care providers will continue their rapacious plundering of the American people well into the next presidential cycle without a hitch.
Since US politics has been and continues to be largely held hostage by Wall Street, the pharmaceutical companies got whatever they wanted from a compliant Congress, meaning no real reform and no tax changes. It all adds up to business as usual for American medicine - the public pays, and if it can't, taxpayers foot the bill.
Dow 10,414.14, +85.25 (0.83%)
Nasdaq 2,237.66, +25.97 (1.17%)
S&P 500 1,114.05, +11.58 (1.05%)
NYSE Composite 7,147.15, +60.96 (0.86%)
Simple indicators affirmed the upside bias, suggesting further price appreciation for equities as advancing issues trumped decliners, 4503-2061, and new highs beat new lows, 499-94. Even though the dollar was higher against foreign currencies, stocks managed healthy gains, with all ten sectors advancing. Volume was slightly lower than normal, due to the closeness of the holidays, but not so poor as to suggest that traders were completely disinterested.
As the Dow and S&P were churning over ground already harvested, the NASDAQ broke out to new highs, as financial services and technology led the index higher. Amazon (AMZN), Google (GOOG) and Apple (AAPL) all posted strong gains.
NYSE Volume 4,531,713,500
Nasdaq Volume 1,837,347,875
The commodity complex was buffeted by the rising greenback. Oil slipped 89 cents, to $72.47. Gold fell dramatically, below the psychological $1100 level, down $15.50, to $1,096.00, in a continuation of the pull-back from all-time highs. Silver responded in like fashion, losing 28 cents, to $17.04.
With just three more days remaining in the shortened week (plus, Thursday will be a half-session), Tuesday's trade is likely to be more tempered as the third and final GDP estimate for the 3rd quarter is released at 8:30 am and existing home sales data for November will be announced at 10:00 am. At the same time on Wednesday, the National Association of Realtors (NAR) will release new home sales figures for November.
Stocks soared right off the opening bell and held onto most of their gains through a somewhat listless session, though there was plenty of M&A news to keep participants interested. Besides Alcoa surging nearly 8% at the close, merger mania seems to have overtaken the health care sector, as pharma firms flush with cash seek to expand into the consumer market.
With the US senate voting to suspend debate on the health care bill, the major drug companies seem confident they have wrung the very best deal they could out of their congressional puppets. Many firms in the sector have been up sharply in recent days, including Dow components Merck (MRK) and Pfizer (PFE), considering the reform measure to be nothing more than bluster and Democratic party PR, void of substantive change. Thus, big pharma and health care providers will continue their rapacious plundering of the American people well into the next presidential cycle without a hitch.
Since US politics has been and continues to be largely held hostage by Wall Street, the pharmaceutical companies got whatever they wanted from a compliant Congress, meaning no real reform and no tax changes. It all adds up to business as usual for American medicine - the public pays, and if it can't, taxpayers foot the bill.
Dow 10,414.14, +85.25 (0.83%)
Nasdaq 2,237.66, +25.97 (1.17%)
S&P 500 1,114.05, +11.58 (1.05%)
NYSE Composite 7,147.15, +60.96 (0.86%)
Simple indicators affirmed the upside bias, suggesting further price appreciation for equities as advancing issues trumped decliners, 4503-2061, and new highs beat new lows, 499-94. Even though the dollar was higher against foreign currencies, stocks managed healthy gains, with all ten sectors advancing. Volume was slightly lower than normal, due to the closeness of the holidays, but not so poor as to suggest that traders were completely disinterested.
As the Dow and S&P were churning over ground already harvested, the NASDAQ broke out to new highs, as financial services and technology led the index higher. Amazon (AMZN), Google (GOOG) and Apple (AAPL) all posted strong gains.
NYSE Volume 4,531,713,500
Nasdaq Volume 1,837,347,875
The commodity complex was buffeted by the rising greenback. Oil slipped 89 cents, to $72.47. Gold fell dramatically, below the psychological $1100 level, down $15.50, to $1,096.00, in a continuation of the pull-back from all-time highs. Silver responded in like fashion, losing 28 cents, to $17.04.
With just three more days remaining in the shortened week (plus, Thursday will be a half-session), Tuesday's trade is likely to be more tempered as the third and final GDP estimate for the 3rd quarter is released at 8:30 am and existing home sales data for November will be announced at 10:00 am. At the same time on Wednesday, the National Association of Realtors (NAR) will release new home sales figures for November.
Thursday, October 15, 2009
Late Day Action Boosts Stocks; Google Soars; IBM Sours
As is often the case during earnings season, much of the real action happened after the closing bell. That was when tech bellwethers Google (GOOG) and IBM (IBM) announced third quarter earnings results. But first, a recap of the day's trading, which was, by most accounts, choppy and surprising at the end.
Stocks spent most of the day in a narrow range just below the break even line. Around 2:30 pm, the major indices managed to pop into the green and stayed there into the close, marking new 2009 highs for the major indices. These moves were in spite of the chorus of boos surrounding Goldman Sach's 3rd quarter earnings announcement before the bell, which was better than expectations, but not good enough to keep the stock from sliding throughout the session. Most of the interest was focused not on Goldman's stellar 3rd quarter, but on the bonuses being paid to executives.
The company practically owns the deal-making space, now that Bear Stearns and Lehman Bros. have departed, and they made boatloads of money - $3.19 billion, beating the estimates handily - but because of a Meredith Whitney downgrade on Tuesday (based on valuation - Goldman shares have nearly quadrupled since last November) and general dislike for the firm many believe runs the government, the banking business and most of the known universe. Like them or hate them, making 300% on your money in a year isn't hard to take. Sure, they pay their executives handsomely, but they bring in huge money for their shareholders, so the only people griping are those not smart enough to have gotten on the bandwagon.
The stock lost a whole 3 points and change on the day. I'm sure owners of the stock are really crying in their champagne.
Also before the bell was the usual horrid unemployment claims number. Another 514,000 Americans filed for unemployment benefits this week. These numbers cannot be taken seriously. First, unemployment benefits are so easy to come by these days that the people claiming them probably shouldn't even be counted as seriously unemployed. All you have to do is a poor job and somebody will certainly furlough you. Additionally, according to the figures, which have been over 500,000 for more than a year, there have been at least 25 million people collecting benefits in the past 12 months. That's an enormous figure, even in bad times. What matters more is how long these people stay out of work, not how many are stepping up to the collection plate.
The number of people still collecting benefits fell below 6 million, and that number has been trending lower for months, a positive sign for the economy.
Citigroup also reported before the bell and the results were mixed. The company which received the most assistance from the feds, and is partially owned by you ,me, and our neighbors across America, hasn't done a very good job of managing our money, which came as no surprise and had little influence on the general market.
Dow 10,062.94, +47.08 (0.47%)
NASDAQ 2,173.29, +1.06 (0.05%)
S&P 500 1,096.56, +4.54 (0.42%)
NYSE Composite 7,204.05. +21.67 (0.30%)
Declining issues finished slightly ahead of advancers, 3338-3081. There were 727 new highs to just 73 new lows. Volume was in the range it's been since Tuesday. There is still a ton of money on the sidelines, missing out on the rally. This stagnant money will be great for savvy traders, because when it finally does come in, it will send a strong selling signal at a supposed market top. Smart guys and gals will be able to maximize profits upon exiting. Look for an unusually high volume number to send the signal that it's time to unload.
NYSE Volume 6,184,697,500
NASDAQ Volume 2,199,385,750
Commodities were led by oil, which gained $2.40, to $77.58. The price of oil, and its derivative, gas, is approaching a level at which it can damage the economic recovery. more money being spent on fuel means less to spend on all the other things Americans enjoy. Though there's unanimity in the chorus of oil traders that the price will go higher, I'd still not engage in that trade as it can only go so far before crimping its own demand. Many would agree that it's already too high, but, since all hatred is currently focused on bankers, the oil moguls are getting a free ride. Buy some Chevron or ExxonMobil stock if you don't like the higher prices for gas. The gains will even out, and if prices do fall, your stock will only be worth a little less. It's a zero sum trade if you play it properly.
The precious metals were hit by profit taking. Gold sold off to $1,050.60, a key inflection point, down by $14.10. Silver dipped 49 cents, to $17.42.
As for Google, the company posted its largest profit and revenue ever. That about covers the state of the internet. Technology companies are extremely healthy, with squeaky clean balance sheets. Like Google, most of the larger ones have no, or very small amounts of, debt.
IBM also beat forecasts, but revenue slipped. Big Blue is still recovering from the last year in which many of its major clients suffered or went out of business. They're doing just fine, however, having hit new 52-week highs in just the past week.
Google also posted a string of new 52-week highs in recent days. The search giant is branching out into other areas, a sign that they feel supremely confident about the economy going forward.
You should too.
Stocks spent most of the day in a narrow range just below the break even line. Around 2:30 pm, the major indices managed to pop into the green and stayed there into the close, marking new 2009 highs for the major indices. These moves were in spite of the chorus of boos surrounding Goldman Sach's 3rd quarter earnings announcement before the bell, which was better than expectations, but not good enough to keep the stock from sliding throughout the session. Most of the interest was focused not on Goldman's stellar 3rd quarter, but on the bonuses being paid to executives.
The company practically owns the deal-making space, now that Bear Stearns and Lehman Bros. have departed, and they made boatloads of money - $3.19 billion, beating the estimates handily - but because of a Meredith Whitney downgrade on Tuesday (based on valuation - Goldman shares have nearly quadrupled since last November) and general dislike for the firm many believe runs the government, the banking business and most of the known universe. Like them or hate them, making 300% on your money in a year isn't hard to take. Sure, they pay their executives handsomely, but they bring in huge money for their shareholders, so the only people griping are those not smart enough to have gotten on the bandwagon.
The stock lost a whole 3 points and change on the day. I'm sure owners of the stock are really crying in their champagne.
Also before the bell was the usual horrid unemployment claims number. Another 514,000 Americans filed for unemployment benefits this week. These numbers cannot be taken seriously. First, unemployment benefits are so easy to come by these days that the people claiming them probably shouldn't even be counted as seriously unemployed. All you have to do is a poor job and somebody will certainly furlough you. Additionally, according to the figures, which have been over 500,000 for more than a year, there have been at least 25 million people collecting benefits in the past 12 months. That's an enormous figure, even in bad times. What matters more is how long these people stay out of work, not how many are stepping up to the collection plate.
The number of people still collecting benefits fell below 6 million, and that number has been trending lower for months, a positive sign for the economy.
Citigroup also reported before the bell and the results were mixed. The company which received the most assistance from the feds, and is partially owned by you ,me, and our neighbors across America, hasn't done a very good job of managing our money, which came as no surprise and had little influence on the general market.
Dow 10,062.94, +47.08 (0.47%)
NASDAQ 2,173.29, +1.06 (0.05%)
S&P 500 1,096.56, +4.54 (0.42%)
NYSE Composite 7,204.05. +21.67 (0.30%)
Declining issues finished slightly ahead of advancers, 3338-3081. There were 727 new highs to just 73 new lows. Volume was in the range it's been since Tuesday. There is still a ton of money on the sidelines, missing out on the rally. This stagnant money will be great for savvy traders, because when it finally does come in, it will send a strong selling signal at a supposed market top. Smart guys and gals will be able to maximize profits upon exiting. Look for an unusually high volume number to send the signal that it's time to unload.
NYSE Volume 6,184,697,500
NASDAQ Volume 2,199,385,750
Commodities were led by oil, which gained $2.40, to $77.58. The price of oil, and its derivative, gas, is approaching a level at which it can damage the economic recovery. more money being spent on fuel means less to spend on all the other things Americans enjoy. Though there's unanimity in the chorus of oil traders that the price will go higher, I'd still not engage in that trade as it can only go so far before crimping its own demand. Many would agree that it's already too high, but, since all hatred is currently focused on bankers, the oil moguls are getting a free ride. Buy some Chevron or ExxonMobil stock if you don't like the higher prices for gas. The gains will even out, and if prices do fall, your stock will only be worth a little less. It's a zero sum trade if you play it properly.
The precious metals were hit by profit taking. Gold sold off to $1,050.60, a key inflection point, down by $14.10. Silver dipped 49 cents, to $17.42.
As for Google, the company posted its largest profit and revenue ever. That about covers the state of the internet. Technology companies are extremely healthy, with squeaky clean balance sheets. Like Google, most of the larger ones have no, or very small amounts of, debt.
IBM also beat forecasts, but revenue slipped. Big Blue is still recovering from the last year in which many of its major clients suffered or went out of business. They're doing just fine, however, having hit new 52-week highs in just the past week.
Google also posted a string of new 52-week highs in recent days. The search giant is branching out into other areas, a sign that they feel supremely confident about the economy going forward.
You should too.
Label:
CitiGroup,
gold,
Goldman Sachs,
Google,
IBM
Wednesday, October 14, 2009
Dow Pops 10,000
I am actually exhausted from playing today's breakout rally. I've been up since 4:00 am, so great was my anticipation of the day the Dow finally popped 10,000. Here's what you need to know:
The last time the Dow crossed and closed above 10000 was on December 11, 2003. By January 26, 2004, it had topped out at 10,702, finally peaking in October, 2007 above 14,000.
Prior to that, the Dow's first cross of 10,000 was March 26 of 1999, during the heat of the dot-com boom. After testing the level for 5 trading days, the index finally climbed above the mark on April 7. On January 16, 2000, it peaked at 11722.98.
The people telling you that Dow 10,000 is insignificant and that it has crossed over that point 26 times are misleading you, whether on purpose or through partial ignorance. Every time the Dow has pierced the 10,000 mark to the upside in the midst of a rally, it has continued higher, significantly.
Today's move was interesting in that it came with options expiration just 2 days away. This kept a lid on stocks through most of the session, frustrating all but the most savvy investors, who knew that option positions were being flipped with every uptick short of 10,000. By 3:00, the lid came off as players sat back, counted their profits and held overnight. Some of the biggest options payoffs come on the final days of trading, though recently, Wednesdays have been the most active. Nobody wants to be caught in an upside down position with no way out, so holding until the final expiration is only for the best or the worst options traders.
Noting that, Thursday and Friday may be a little light, but Monday, when new positions are being staked out, should be explosive. There are more earnings due out over the course of the next three weeks, with the next two the busiest. Knowing which stocks to play will be essential to profits.
Dow 10,015.86, +144.80 (1.47%)
NASDAQ 2,172.23, +32.34 (1.51%)
S&P 500 1,092.02, +18.83 (1.75%)
NYSE Composite 7,182.38, +150.51 (2.14%)
Today really was all about the Dow Jones Industrials, but only 25 of the 30 stocks were gainers. Home Depot (HD), Johnson & Johnson (JNJ), AT&T (T), Verizon (VZ) and Wal-Mart (WMT) were the only losers and their losses were light. There will always be laggards, but as long as there are leaders, the Dow Index is still relevant.
On the day, simple indicators expressed exactly what kind of session it was: BULLISH! Advancers clobbered declining issues, 4887-1640 (3-1). New highs were all over the place, 921 of them, the most in over two years. There were 94 new lows. Volume was average, which means that those still out of the market have not yet found the courage to get in the game. They have missed the most significant rally of a generation, but the best part is that they don't know it's not over yet. There are still plenty of success stories to be told in this rally. When the outside money comes in, it will just add fuel to the already overheated fire and probably cause a correction as profits are taken with enthusiasm. Market tops always occur when the late money or stupid money gets involved and this is no different.
NYSE Volume 6,248,702,000
NASDAQ Volume 2,383,078,250
Talk has been rampant about predictions for the end of the year. Dow 10,700 and 11,150 and S&P 1200 have been popular numbers thrown out by experienced, professional traders. Those sound like reasonable targets. All of the major indices made new 2009 and multi-month highs.
Commodities took a back seat to stocks. Oil gained $1.03, to $75.18. Gold fell 30 cents, to $1,064.70. Silver was up 7 cents, to $17.91. They were a side show, but still tradable on pullbacks.
The rally was led by a troika of grand news. Intel posted exceptional 3rd quarter numbers and even better guidance. JP Morgan Chase blew the lid off, beat the 52 cents the street was expecting by 30 cents. 82 cents per share! Then, at 8:30 am, retail sales showed improvement when the cash for clunkers was stripped out. Finally, consumer demand has emerged. Just n time for Christmas.
There are more companies reporting tomorrow, notable Goldman Sachs (GS) and Google (GOOG). They are both expected to have blockbuster results.
The importance of Dow 10,000 cannot be underestimated. everyone who works on Wall Street feels better tonight than they did this morning. All investors who are in the market are probably a little more at ease. We, after all are human, and the number is an emotional one. It just plain makes us feel good about the economy. Everyone on the planet can relate to the big, round number, especially following the events of the past year.
There are more gains ahead.
Happy trading!
The last time the Dow crossed and closed above 10000 was on December 11, 2003. By January 26, 2004, it had topped out at 10,702, finally peaking in October, 2007 above 14,000.
Prior to that, the Dow's first cross of 10,000 was March 26 of 1999, during the heat of the dot-com boom. After testing the level for 5 trading days, the index finally climbed above the mark on April 7. On January 16, 2000, it peaked at 11722.98.
The people telling you that Dow 10,000 is insignificant and that it has crossed over that point 26 times are misleading you, whether on purpose or through partial ignorance. Every time the Dow has pierced the 10,000 mark to the upside in the midst of a rally, it has continued higher, significantly.
Today's move was interesting in that it came with options expiration just 2 days away. This kept a lid on stocks through most of the session, frustrating all but the most savvy investors, who knew that option positions were being flipped with every uptick short of 10,000. By 3:00, the lid came off as players sat back, counted their profits and held overnight. Some of the biggest options payoffs come on the final days of trading, though recently, Wednesdays have been the most active. Nobody wants to be caught in an upside down position with no way out, so holding until the final expiration is only for the best or the worst options traders.
Noting that, Thursday and Friday may be a little light, but Monday, when new positions are being staked out, should be explosive. There are more earnings due out over the course of the next three weeks, with the next two the busiest. Knowing which stocks to play will be essential to profits.
Dow 10,015.86, +144.80 (1.47%)
NASDAQ 2,172.23, +32.34 (1.51%)
S&P 500 1,092.02, +18.83 (1.75%)
NYSE Composite 7,182.38, +150.51 (2.14%)
Today really was all about the Dow Jones Industrials, but only 25 of the 30 stocks were gainers. Home Depot (HD), Johnson & Johnson (JNJ), AT&T (T), Verizon (VZ) and Wal-Mart (WMT) were the only losers and their losses were light. There will always be laggards, but as long as there are leaders, the Dow Index is still relevant.
On the day, simple indicators expressed exactly what kind of session it was: BULLISH! Advancers clobbered declining issues, 4887-1640 (3-1). New highs were all over the place, 921 of them, the most in over two years. There were 94 new lows. Volume was average, which means that those still out of the market have not yet found the courage to get in the game. They have missed the most significant rally of a generation, but the best part is that they don't know it's not over yet. There are still plenty of success stories to be told in this rally. When the outside money comes in, it will just add fuel to the already overheated fire and probably cause a correction as profits are taken with enthusiasm. Market tops always occur when the late money or stupid money gets involved and this is no different.
NYSE Volume 6,248,702,000
NASDAQ Volume 2,383,078,250
Talk has been rampant about predictions for the end of the year. Dow 10,700 and 11,150 and S&P 1200 have been popular numbers thrown out by experienced, professional traders. Those sound like reasonable targets. All of the major indices made new 2009 and multi-month highs.
Commodities took a back seat to stocks. Oil gained $1.03, to $75.18. Gold fell 30 cents, to $1,064.70. Silver was up 7 cents, to $17.91. They were a side show, but still tradable on pullbacks.
The rally was led by a troika of grand news. Intel posted exceptional 3rd quarter numbers and even better guidance. JP Morgan Chase blew the lid off, beat the 52 cents the street was expecting by 30 cents. 82 cents per share! Then, at 8:30 am, retail sales showed improvement when the cash for clunkers was stripped out. Finally, consumer demand has emerged. Just n time for Christmas.
There are more companies reporting tomorrow, notable Goldman Sachs (GS) and Google (GOOG). They are both expected to have blockbuster results.
The importance of Dow 10,000 cannot be underestimated. everyone who works on Wall Street feels better tonight than they did this morning. All investors who are in the market are probably a little more at ease. We, after all are human, and the number is an emotional one. It just plain makes us feel good about the economy. Everyone on the planet can relate to the big, round number, especially following the events of the past year.
There are more gains ahead.
Happy trading!
Friday, July 17, 2009
Split Friday, Positive Week for Stocks
Earnings results were just good enough - from Bank of America and Citigroup's weakness, to IBM and Google's strength - to push stocks modestly into positive territory for the day on two exchanges and marginally in the red on two others. The general ambivalence displayed by the day's trading is indicative of another topping out, or, at least a weekend resting point, as the Dow has rung up gains for 5 straight sessions, the NASDAQ, 6. It's a winning streak worthy of note and one that put an end to 4 consecutive losing weeks.
Over the past five sessions the Dow has tacked on an impressive 597 points, the NASDAQ perked up 130; the S&P gained 61 and the NYSE Composite added 411. For all the talk about there being no recovery in sight, the first wave of corporate earnings provided enough positive vibe to send the markets off on a nice upward run.
The question still remains as to whether the gains are sustainable, though given the early returns, the companies being traded seem to have adjusted to a new set of economic circumstances. While earnings are still down from what they were a year ago, so are stock prices. Investors are weighing the current results against an uncertain future, but remain positive, though skeptical. At least there seems to be little worry about a complete melt-down a la last fall.
Dow 8,743.94, +32.12 (0.37%)
NASDAQ 1,886.61, +1.58 (0.08%)
S&P 500 940.38, -0.36 (0.04%)
NYSE Composite 6,038.11, -4.94 (0.08%)
On the day, declining issues narrowly beat advancers, 3376-2936, but new highs bested new lows, 103-71. Volume remained down, though not down to levels of previous sessions, but close. The low level of trading velocity continues to be a topic overlooked by the mainstream financial press. Sluggish trading is a clear sign that investors ate still skittish and widely risk-averse. The vast majority of trades are of the short-term variety, more akin to gambling than traditional investing.
NYSE Volume 1,290,375,000
NASDAQ Volume 1,890,890,000
Commodity traders were also encouraged, sending crude futures higher again, up $1.48, to $63.50. Gold brought an additional $2.10 per ounce, at $937.50. Silver tacked on 17 cents, to close at $13.40.
The coming two weeks will be chock full of earnings hits and misses, though the general indications are that most companies have avoided all-out bust scenarios and may be looking to avoid returning to near-term bottoms from March. The US and world economies have stumbled badly, but they're still functioning, albeit at a decreased capacity.
Over the past five sessions the Dow has tacked on an impressive 597 points, the NASDAQ perked up 130; the S&P gained 61 and the NYSE Composite added 411. For all the talk about there being no recovery in sight, the first wave of corporate earnings provided enough positive vibe to send the markets off on a nice upward run.
The question still remains as to whether the gains are sustainable, though given the early returns, the companies being traded seem to have adjusted to a new set of economic circumstances. While earnings are still down from what they were a year ago, so are stock prices. Investors are weighing the current results against an uncertain future, but remain positive, though skeptical. At least there seems to be little worry about a complete melt-down a la last fall.
Dow 8,743.94, +32.12 (0.37%)
NASDAQ 1,886.61, +1.58 (0.08%)
S&P 500 940.38, -0.36 (0.04%)
NYSE Composite 6,038.11, -4.94 (0.08%)
On the day, declining issues narrowly beat advancers, 3376-2936, but new highs bested new lows, 103-71. Volume remained down, though not down to levels of previous sessions, but close. The low level of trading velocity continues to be a topic overlooked by the mainstream financial press. Sluggish trading is a clear sign that investors ate still skittish and widely risk-averse. The vast majority of trades are of the short-term variety, more akin to gambling than traditional investing.
NYSE Volume 1,290,375,000
NASDAQ Volume 1,890,890,000
Commodity traders were also encouraged, sending crude futures higher again, up $1.48, to $63.50. Gold brought an additional $2.10 per ounce, at $937.50. Silver tacked on 17 cents, to close at $13.40.
The coming two weeks will be chock full of earnings hits and misses, though the general indications are that most companies have avoided all-out bust scenarios and may be looking to avoid returning to near-term bottoms from March. The US and world economies have stumbled badly, but they're still functioning, albeit at a decreased capacity.
Label:
Bank of America,
CitiGroup,
GOOG,
Google,
IBM
Thursday, April 16, 2009
NASDAQ Leads Broad Rally
Excuse me for being blunt, but this rally - now stretching through its sixth straight week without a break - is built on the same thing as the election of Barack Obama: hope.
And so far, the election has turned out to be nothing but a disgrace. Yesterday, hundreds of thousands of ordinary Americans made their way to 500-800 "tea parties" across the country to express their dislike for government policies which will almost surely destroy the country. Today, stocks took a little while to get started, but eventually put on a demonstration of purely idiodic exuberant behavior, not seen since the heady days of 1999, in the middle of the dotcom boom (which months later went bust).
Recent trading activity gives credence to the words of the great showman, P.T. Barnum, who correctly stated that there was a sucker born every minute. Mr. Barmun would no doubt revel in the hijinks of the current market, as investors buy in at stocks' highs, hoping to catch the wave. The reality is that these froth-finders will end up as abject bag-holders. And who can fault anyone who sees fit to remain on the sidelines in this overheated environment? Just a month ago, stocks hit 12-year lows. Today, the major averages have rebounded more than 30%. To consider the stock market unsafe in the near term is to miss the "rally", but getting in now would actually be the height of foolishness.
What we are witnessing is tantamount to making excuses for murder and allowing the criminals to not only walk away free men, but to have full use of their guns as well. Stocks are reporting horrible numbers, like Gannett, which reported a 60% decline in quarterly profit from a year ago, yet was traded higher on the day.
Ditto JP Morgan (JPM), Nokia (NOK) - profits off nearly 90%, yet the stock was up 10% today - and various smaller companies which recorded steep profit declines which miraculously beat lowered expectations and were glibly bought up by overzealous investors seeking to recoup losses from the second half of 2008 and the first quarter of 2009. Good luck to them.
The close on the NASDAQ today was the highest since November 5, 2008. It is not a significant number. The NASDAQ could still go higher without signaling a true bull market. The bear persists. despite that, this rally not only has legs, it has, as of today, sprouted wings and taken flight.
Dow 8,125.43, +95.81 (1.19%)
NASDAQ 1,670.44, +43.64 (2.68%)
S&P 500 865.30, +13.24 (1.55%)
NYSE Composite 5,454.27, +69.30 (1.29%)
Advancers trounced decliners, 4907-1639, however, the key metric which has held true throughout the decline from October 2007, new highs-lows, retained its bias toward new lows, 90-42. While the gap has narrowed significantly and the number of daily new highs continues to improve, the bias is still negative. When and if this rolls over is the big question. We are reaching points at which many stocks had hit 52-week lows a year ago, so some of the new highs are more than likely nothing more than bounces off the bottoms. Still, this persistent indicator remains the strongest evidence that the markets are in a false recovery which will eventually roll over and die.
Volume was very high, owing to the expiration of options on Friday.
NYSE Volume 1,604,455,000
NASDAQ Volume 2,376,984,000
Commodities were mixed. Oil for May delivery - a new contract - gained 73 cents, closing at $49.98. Gold continued its slow deterioration, dropping another $13.70, to $879.80. Silver also was hammered lower, losing 55 cents, to $12.26. The metals are exhibiting tell-tale deflation, while oil also struggles to gain ground. Usually, as spring commences, oil shows more pricing power, though the signs of slack demand and oversupply are everywhere and the price of crude could easily see mid-40s or lower as the global recession continues.
Naturally, there is a good deal of euphoria about the rebound in stocks, seen as a leading indicator that the bottom has been found and the recession will soon be over. Not that I am routinely pessimistic, I just read the tea leaves differently and consider the entire public sector to be horribly corrupt, taking its cue from the unapologetic banking firms of Wall Street, with the mainstream media in tow. There's been an overabundance of hype about banks suddenly being solvent and prosperous, while just six months ago these same outfits were facing destruction and bankruptcy and the global economy on the verge of implosion.
Color me skeptical, but I just don't see how one can have it both ways. Either the banks were badly damaged, especially the largest ones, or the entire episode in which the government threw trillions of dollars of taxpayer money at the problem was a complete scam. More than likely, banks are now "solvent" due to the recent easing of accounting rules, which did away with mark-to-market and adopted mark-to-model, which is allowing the banks to mark toxic assets at 98 cents on the dollar rather the the 30 to 40 cents (mark to market) they are worth in the real world.
After the close, Google (GOOG) beat analyst estimates, and the stock took off in after hours trading, up more than 20 points (5.35%). With that as a backstop, expect stocks to soar again on Friday. They have exploded to near-term highs with little resistance ahead.
On the other hand, Foreclosure filings jumped 24%, new home construction fell 11%, jobless claims were down in the most recent week (though analysts failed to report that last week included Good Friday, a half day or holiday for many), and the nation's second-largest mall operator - General Growth Properties - filed for bankruptcy protection, as the firm was unable to roll over debt.
All's well... well, maybe.
And so far, the election has turned out to be nothing but a disgrace. Yesterday, hundreds of thousands of ordinary Americans made their way to 500-800 "tea parties" across the country to express their dislike for government policies which will almost surely destroy the country. Today, stocks took a little while to get started, but eventually put on a demonstration of purely idiodic exuberant behavior, not seen since the heady days of 1999, in the middle of the dotcom boom (which months later went bust).
Recent trading activity gives credence to the words of the great showman, P.T. Barnum, who correctly stated that there was a sucker born every minute. Mr. Barmun would no doubt revel in the hijinks of the current market, as investors buy in at stocks' highs, hoping to catch the wave. The reality is that these froth-finders will end up as abject bag-holders. And who can fault anyone who sees fit to remain on the sidelines in this overheated environment? Just a month ago, stocks hit 12-year lows. Today, the major averages have rebounded more than 30%. To consider the stock market unsafe in the near term is to miss the "rally", but getting in now would actually be the height of foolishness.
What we are witnessing is tantamount to making excuses for murder and allowing the criminals to not only walk away free men, but to have full use of their guns as well. Stocks are reporting horrible numbers, like Gannett, which reported a 60% decline in quarterly profit from a year ago, yet was traded higher on the day.
Ditto JP Morgan (JPM), Nokia (NOK) - profits off nearly 90%, yet the stock was up 10% today - and various smaller companies which recorded steep profit declines which miraculously beat lowered expectations and were glibly bought up by overzealous investors seeking to recoup losses from the second half of 2008 and the first quarter of 2009. Good luck to them.
The close on the NASDAQ today was the highest since November 5, 2008. It is not a significant number. The NASDAQ could still go higher without signaling a true bull market. The bear persists. despite that, this rally not only has legs, it has, as of today, sprouted wings and taken flight.
Dow 8,125.43, +95.81 (1.19%)
NASDAQ 1,670.44, +43.64 (2.68%)
S&P 500 865.30, +13.24 (1.55%)
NYSE Composite 5,454.27, +69.30 (1.29%)
Advancers trounced decliners, 4907-1639, however, the key metric which has held true throughout the decline from October 2007, new highs-lows, retained its bias toward new lows, 90-42. While the gap has narrowed significantly and the number of daily new highs continues to improve, the bias is still negative. When and if this rolls over is the big question. We are reaching points at which many stocks had hit 52-week lows a year ago, so some of the new highs are more than likely nothing more than bounces off the bottoms. Still, this persistent indicator remains the strongest evidence that the markets are in a false recovery which will eventually roll over and die.
Volume was very high, owing to the expiration of options on Friday.
NYSE Volume 1,604,455,000
NASDAQ Volume 2,376,984,000
Commodities were mixed. Oil for May delivery - a new contract - gained 73 cents, closing at $49.98. Gold continued its slow deterioration, dropping another $13.70, to $879.80. Silver also was hammered lower, losing 55 cents, to $12.26. The metals are exhibiting tell-tale deflation, while oil also struggles to gain ground. Usually, as spring commences, oil shows more pricing power, though the signs of slack demand and oversupply are everywhere and the price of crude could easily see mid-40s or lower as the global recession continues.
Naturally, there is a good deal of euphoria about the rebound in stocks, seen as a leading indicator that the bottom has been found and the recession will soon be over. Not that I am routinely pessimistic, I just read the tea leaves differently and consider the entire public sector to be horribly corrupt, taking its cue from the unapologetic banking firms of Wall Street, with the mainstream media in tow. There's been an overabundance of hype about banks suddenly being solvent and prosperous, while just six months ago these same outfits were facing destruction and bankruptcy and the global economy on the verge of implosion.
Color me skeptical, but I just don't see how one can have it both ways. Either the banks were badly damaged, especially the largest ones, or the entire episode in which the government threw trillions of dollars of taxpayer money at the problem was a complete scam. More than likely, banks are now "solvent" due to the recent easing of accounting rules, which did away with mark-to-market and adopted mark-to-model, which is allowing the banks to mark toxic assets at 98 cents on the dollar rather the the 30 to 40 cents (mark to market) they are worth in the real world.
After the close, Google (GOOG) beat analyst estimates, and the stock took off in after hours trading, up more than 20 points (5.35%). With that as a backstop, expect stocks to soar again on Friday. They have exploded to near-term highs with little resistance ahead.
On the other hand, Foreclosure filings jumped 24%, new home construction fell 11%, jobless claims were down in the most recent week (though analysts failed to report that last week included Good Friday, a half day or holiday for many), and the nation's second-largest mall operator - General Growth Properties - filed for bankruptcy protection, as the firm was unable to roll over debt.
All's well... well, maybe.
Label:
General Growth Properties,
GOOG,
Google
Monday, February 04, 2008
Traders Take Profits; Leery Google Cries Foul
A smattering of good news appeared on Wall Street as the week opened, though the comparative numbers still indicated a slowing economy persisting.
On Monday, the Commerce Department reported that US factory orders rose by 2.3% in December, an improvement from November's 1.7% gain and the largest increase since July.
Orders for big-ticket goods were up 5%, but "nondurable" goods, including clothing, textiles and beverages slipped 0.4%.
Taken together, the annual numbers carry more weight than the one-month bump in December and investors responded by taking some profits from the previous week off the table.
By 10:00 am, the Dow Industrials were off 75 points and stocks continued to trade in a narrow, lower range for the balance of the session.
Dow 12,635.16 -108.03; NASDAQ 2,382.85 -30.51; S&P 500 1,380.82 -14.60; NYSE Composite 9,202.11 -75.47
Volume was extremely light, an indication that investors are in a wait-and-see mood, with earnings season winding down and only minor economic news scheduled for release this week.
On Wednesday, preliminary 4th quarter productivity figures and crude oil inventories will be released. On Thursday, traders will be watching the initial unemployment claims after a big jump last week. Pending home sales and consumer credit figures are also due for release on Thursday.
The response, penned by one of Google's lawyers, smacks of hypocrisy and fear. Google owns a domineering position in search that borders on a monopoly, though the combination of their two main rivals could pose a serious threat to that dominance.
Yahoo has yet to respond to the roughly $31 per share offer by Microsoft, but analysts are saying it will be difficult to refuse as it represents a 62% premium over Yahoo's price prior to the offer.
With little to move stocks, decliners took command over advancing issues, 3663-2598, though the gap between new lows and new highs continued eroding. New lows held a slim edge on the day, 121-98.
Crude oil priced $1.06 higher, at $90.02, while gold fell $4.10 to $909.40 and silver dropped 9 cents to $16.78. The reduced prices in the precious metals may indicated a prime buying opportunity in these supercharged markets which should only trend higher over the coming months.
NYSE Volume 3,290,565,000
NASDAQ Volume 2,027,786,875
On Monday, the Commerce Department reported that US factory orders rose by 2.3% in December, an improvement from November's 1.7% gain and the largest increase since July.
Orders for big-ticket goods were up 5%, but "nondurable" goods, including clothing, textiles and beverages slipped 0.4%.
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For the year, total orders were up just 1.4%, the worst annual performance since 2002. That was a large fall from 2006, when total factory orders rose by 5.1%.The Path of Substantial Wealth and Riches: Your Parents' Influence on Your Finances
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Taken together, the annual numbers carry more weight than the one-month bump in December and investors responded by taking some profits from the previous week off the table.
By 10:00 am, the Dow Industrials were off 75 points and stocks continued to trade in a narrow, lower range for the balance of the session.
Dow 12,635.16 -108.03; NASDAQ 2,382.85 -30.51; S&P 500 1,380.82 -14.60; NYSE Composite 9,202.11 -75.47
Volume was extremely light, an indication that investors are in a wait-and-see mood, with earnings season winding down and only minor economic news scheduled for release this week.
On Wednesday, preliminary 4th quarter productivity figures and crude oil inventories will be released. On Thursday, traders will be watching the initial unemployment claims after a big jump last week. Pending home sales and consumer credit figures are also due for release on Thursday.
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Topping the news is Microsoft's (MSFT) hostile takeover bid for Yahoo (YHOO) and Google's (GOOG) scathing criticism of the potential union of two of the internet's larger players.Stocks go up and down. Make money in both directions with exclusive options advisor.
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The response, penned by one of Google's lawyers, smacks of hypocrisy and fear. Google owns a domineering position in search that borders on a monopoly, though the combination of their two main rivals could pose a serious threat to that dominance.
Yahoo has yet to respond to the roughly $31 per share offer by Microsoft, but analysts are saying it will be difficult to refuse as it represents a 62% premium over Yahoo's price prior to the offer.
With little to move stocks, decliners took command over advancing issues, 3663-2598, though the gap between new lows and new highs continued eroding. New lows held a slim edge on the day, 121-98.
Crude oil priced $1.06 higher, at $90.02, while gold fell $4.10 to $909.40 and silver dropped 9 cents to $16.78. The reduced prices in the precious metals may indicated a prime buying opportunity in these supercharged markets which should only trend higher over the coming months.
NYSE Volume 3,290,565,000
NASDAQ Volume 2,027,786,875
Tuesday, June 26, 2007
Six Reasons to Hate Google
The markets vacillated wildly across and around the flatline on Tuesday in anticipation of the Fed's Open Market Committee meeting on Wednesday and Thursday. The Fed is expected to do noting regarding interest rates, so the markets ended up mostly marking time, drifting to the downside.
Dow 13,337.66 -14.39; NASDAQ 2,574.16 -2.92; S&P 500 1,492.89 -4.85; NYSE Composite 9,774.29 -32.89
Volume was on the heavy side with plenty of money changing hands and some consequence. Losing issues outpaced gainers by a 7-5 margin. New highs rolled over and died, finally, with new lows leading, 224-142.
Oil futures eased a welcome $1.41 to end the day at $67.77. The selloff in precious metals continued with gold losing $9.40 to close at $645.30. Silver lost nearly 5%, 60 cents, ending the day at $12.28.
In the absence of any meaningful market news (all will be forgiven after the Fed meeting), I give you my screeching anti-Google homily.
I generally dislike huge, multi-billion dollar companies as a rule, but Google is one over which I stumble at least a couple of times daily, and I felt it was time the Googlers at the Googleplex (there's a good reason to hate them right there - moronic nomenclature) - to be taken to task for being more hype than reality.
With the share price hovering close to all-time highs (as I write it's at 530), Google is the darling of Wall Street. No more time to waste, let's start the list:
There are more reasons to dislike, despise or hold Google and their culture in contempt. These are but a few. A word of caution: reading this may cause you to lose PageRank. Just kidding, but, on a serious note, Google looks like the perfect short candidate at this time. In the second quarter, they eliminated a gaggle (of course, nobody knows for sure how many because that's a secret) of arbitrageurs from their AdWords/AdSense program and lost out on at least ten days worth of eBay advertising when the auction giant pulled all of their ad campaigns in response to Google's anti-eBay, pro-Google Checkout protest, planned to coincide with eBay Live.
Google backed down (yes, they're weenies, too) and eBay began running ads again, but it's estimated that eBay's annual spend is upwards of $300 million, so Google may be short about $8 million from that one source. Meeting their quarterly estimates may be a challenge this time around.
My suggestion is to buy August 480 puts at around $3.50 currently. Google announced earnings on the 19th and the options expire on the 20th, so the July puts are cutting it a little close. But should they miss, a 50-point shave could be in the offing. Happy Trading.
Dow 13,337.66 -14.39; NASDAQ 2,574.16 -2.92; S&P 500 1,492.89 -4.85; NYSE Composite 9,774.29 -32.89
Volume was on the heavy side with plenty of money changing hands and some consequence. Losing issues outpaced gainers by a 7-5 margin. New highs rolled over and died, finally, with new lows leading, 224-142.
Oil futures eased a welcome $1.41 to end the day at $67.77. The selloff in precious metals continued with gold losing $9.40 to close at $645.30. Silver lost nearly 5%, 60 cents, ending the day at $12.28.
In the absence of any meaningful market news (all will be forgiven after the Fed meeting), I give you my screeching anti-Google homily.
I generally dislike huge, multi-billion dollar companies as a rule, but Google is one over which I stumble at least a couple of times daily, and I felt it was time the Googlers at the Googleplex (there's a good reason to hate them right there - moronic nomenclature) - to be taken to task for being more hype than reality.
With the share price hovering close to all-time highs (as I write it's at 530), Google is the darling of Wall Street. No more time to waste, let's start the list:
- Google's share price. It's too expensive to own more than maybe 100 shares for most people, self included. A solid reason to hate them being that you can't even join them to any satisfactory degree. Worse yet, nearly 25% of the shares aren't publicly traded, meaning that the company, and it's 40+ p/e ratio is even more overvalued than at first blush.
- Valuation: Investors value Google at $165 billion. To put that in perspective, if you spent a million dollars a day, it would take you 452 years to spend all of it. Google will likely be a footnote in history books by then (circa 2469), which brings me to the next point...
- Google and their founders, Sergey Brin and Larry Page are so filthy rich because they invented what? A supposedly better way to find web sites CREATED BY OTHER PEOPLE. Yes, their vaunted algorithm is just an overzealous channel flipper. Big deal. Lots of other companies (Yahoo, MSN, Ask.com) have created search engines, many of which work just as well as Google's. And finding - and capitalizing - on other people's work, which is how search engine companies make money, is a purely parasitical practice.
- Google is a one-trick pony. They've got their search engine, but roughly 98% of their revenue comes from various ad schemes, serving ads on their search engine results pages (SERPs), and, again, on other people's web sites. All of that money is being made on the backs of small businesses (and some large ones).
- Secrecy: Google keeps most of their business practices shrouded under a cloud of secrecy. How their search algorithm works is secret. How much they pay out to publishers in their Adsense program is a secret. Disclosure is cause to be banned. As a publisher, I have only myself to blame for signing on to a closed-ended contract. I don't know how much Google keeps on every click on my site, but I'm certain it's more than the usual 15-20% agency fee. Likely, it's a lot more.
- The Don't be evil motto. This is probably the most annoying statement of anything I've ever read. Google has stepped on the toes of millions of webmasters, run afoul of copyrights in numerous instances and complied with the censorship issues of the Chinese government. Through all of this, they maintain a "good" image. The truth is they're as ruthless and profit-driven as any old-school corporation.
There are more reasons to dislike, despise or hold Google and their culture in contempt. These are but a few. A word of caution: reading this may cause you to lose PageRank. Just kidding, but, on a serious note, Google looks like the perfect short candidate at this time. In the second quarter, they eliminated a gaggle (of course, nobody knows for sure how many because that's a secret) of arbitrageurs from their AdWords/AdSense program and lost out on at least ten days worth of eBay advertising when the auction giant pulled all of their ad campaigns in response to Google's anti-eBay, pro-Google Checkout protest, planned to coincide with eBay Live.
Google backed down (yes, they're weenies, too) and eBay began running ads again, but it's estimated that eBay's annual spend is upwards of $300 million, so Google may be short about $8 million from that one source. Meeting their quarterly estimates may be a challenge this time around.
My suggestion is to buy August 480 puts at around $3.50 currently. Google announced earnings on the 19th and the options expire on the 20th, so the July puts are cutting it a little close. But should they miss, a 50-point shave could be in the offing. Happy Trading.
Friday, January 19, 2007
Markets End Week Meekly
As the short week drew to a close, the markets exhibited signs of life, but barely. Mixed signals from corporate earnings, economic reports and political tensions kept movement to a minimum. The Dow dropped a scant 2.40 points, while the Nasdaq ended its recent losing streak by adding 8.10.
The upside in tech was despite Motorola's (MOT) dismal earnings - 25 cents per share vs. 47 cents a year ago - as deals on popular cell phones continued to whittle away at margins. Gross income was 17% above last year's figures.
The company announced shortly after its earnings release that it would cut 5% of its workforce - about 3500 jobs - and investors cheered, boosting the stock by half a point.
General Electric (GE), a Dow component, also reported 4th quarter results prior to the market open, and delivered a healthy 64 cents per share, more than double last year's 30 cents. The bad news, which sent GE's shares down nearly a point, was that it was restating earnings from 2001 though the 3rd quarter of 2006, due to interest rate swaps in its commercial paper operations.
With just 8 trading days remaining in January, the Dow is 102 points to the positive for 2007, keeping alive hopes for a winning January and setting the tone for the year. It's amazing how many analysts and brokers are guided by the January effect and will follow their nose dependent solely on how the markets perform in just the first month of the year.
The Nasdaq may be a closer call, though today's close puts it 36 points over last year's finish. Further weakness from the likes of Yahoo or eBay, both of which announce results next week, could spawn more selling in tech.
Google announces on January 31, after the close. Amazon reports on February 1.
The upside in tech was despite Motorola's (MOT) dismal earnings - 25 cents per share vs. 47 cents a year ago - as deals on popular cell phones continued to whittle away at margins. Gross income was 17% above last year's figures.
The company announced shortly after its earnings release that it would cut 5% of its workforce - about 3500 jobs - and investors cheered, boosting the stock by half a point.
General Electric (GE), a Dow component, also reported 4th quarter results prior to the market open, and delivered a healthy 64 cents per share, more than double last year's 30 cents. The bad news, which sent GE's shares down nearly a point, was that it was restating earnings from 2001 though the 3rd quarter of 2006, due to interest rate swaps in its commercial paper operations.
With just 8 trading days remaining in January, the Dow is 102 points to the positive for 2007, keeping alive hopes for a winning January and setting the tone for the year. It's amazing how many analysts and brokers are guided by the January effect and will follow their nose dependent solely on how the markets perform in just the first month of the year.
The Nasdaq may be a closer call, though today's close puts it 36 points over last year's finish. Further weakness from the likes of Yahoo or eBay, both of which announce results next week, could spawn more selling in tech.
Google announces on January 31, after the close. Amazon reports on February 1.
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