The market review for June 14

The American stock market on Friday, June 11, opened lower prices of most securities. Before investors put into the quote too much optimism about the future of the U.S. economy, and Friday’s positive expectations have been partially allayed by the data published macroeconomic statistics. In particular, the volume of retail sales in May fell by 1.2%, while economists have predicted his rise to 0,2%. This is the first decline in eight months and quite a negative signal indicating the skepticism of ordinary consumers as to the medium-term prospects of the market. Do not have lasted until the April forecast and the amount of stocks in warehouses: its growth rate of 0,4% instead of the expected 0.5% and was minimal in recent years. Some raise the mood of investors could publish consumer sentiment index for June, calculated by the University of Michigan. From the May level (73.6 points) rose to 75.5 points and established at a maximum of two and a half years level. The interpretation of the growth index at odds with the situation in retail. On this background during the session on 11 June the Dow Jones index made a few attempts to approach the level of Thursday, and only in the last hour of trading managed to get a “plus”, which is a big success for the “bulls” in the light of rapid growth of the preceding day.

As a result of trades on June 11 the Dow Jones index rose 38.54 points (0.38%) – up to 10,211.07 points, NASDAQ rose 24.89 points (1.12%) – up to 2243.6 points, S & P added 4.76 points (0.44%) and amounted to 1,091.6 points.

Amid disappointing sales data by major trading network of the country were among the outsiders bidding. Quotes of the largest U.S. retailer Wal-Mart Stores Inc. fell by 0,7%, The Home Depot Inc. – On 1,53%, Costco Wholesale Corp. – On 0,23%, Lowe’s Companies Inc. – On 1,51%, Gap Inc. – On 0,32%, Staples Inc. – At 0.73%. Given the fact that in the summer buying activity may continue to decline because of seasonality, promotions retailers have every chance to remain under pressure, of course, if the economy starts to show signs of active recovery, which is very doubtful. read more

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The market review for May 6

Bidding on the U.S. stock market on Wednesday, May 5, were in the moderately negative way. Investors have been cautious because of the continuing concerns over the public debt of EU countries. According to some projections, the debt crisis could spread beyond Greece and become a deterrent to revive the global economy. Adds fuel to the fire, and information that the international rating agency Moody’s has placed on May 5 government bond ratings of Portugal at the level of Aa2 to the list to review possible reductions. This press release Moody’s said that ratings of Portugal can be lowered by one or even two stages as a result of the review, which will last up to three months.

In search of evidence of economic recovery the U.S. investors paid attention to the macroeconomic statistics, which were mixed. Number of created jobs in April, slightly exceeded expectations of the market (2 thousand) and amounted to 32 thousand pieces. It is worth mentioning that the situation on the labor market raises the most issues in terms of stability of the American economy, but now investors are more optimistic and do not expect unemployment. Some did not meet the expectations index of business activity in the service sector in April – it amounted to 55,4 points, while experts predicted growth of up to 56.4 points. This result can not be regarded as negative because the activity continues to grow, although its growth rate since March and is not accelerated. Nevertheless, the Dow Jones index on Wednesday was only briefly rise above the level of closing the previous session, up to 11000 points, he does not have lasted, and upset the market participants once again increase its value down properly.
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Case Goldman Sachs may be just the tip of the iceberg

The current investigation of the case against Goldman Sachs Group about fraud when trading collateralized debt obligations (CDO), may be just the tip of the iceberg and the beginning of serious problems for the banks on Wall Street, reports Reuters.

Investigation of an Internet portal ProPublica, concerning the game of the Chicago hedge fund Magnetar against CDO in 2007, has already led to accusations of conflict of interest with respect to Deutsche Bank, Merrill and JPMorgan Chase. Commission on Securities and Exchange (SEC) said it will seriously consider all such cases.

In relation to the Goldman Sachs, then there are several possible scenarios. First, the bank’s management is likely to prefer to pay a fine, even a few hundred million dollars, rather than allow a long-term investigation, which will seriously damage the reputation of the company.

On the other hand, the authorities, given the politically charged case, the desire to show the public that all are equal before the law, can not agree to a quick settlement. Furthermore, in this case, Goldman will have to face numerous lawsuits from affected investors, consideration of which will drag on for years.

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The market review for April 16

Bidding on the U.S. stock market Thursday, April 15, started opposite changes leading indexes because of the weak macroeconomic statistics.First, investors’ expectations are not justified report U.S. Department of Labor (United States Department of Labor), demonstrating growth in the number of primary applications for unemployment benefit up to 484 thousand from the past 460 thousand, while experts predicted decline to 440 thousandThis is the second consecutive increase in the number of those who receive the allowance, which is not evidence of improvement in the labor market, although the data on unemployment, which is no longer growing, continue to point to stabilize the situation.

Do not boosted share prices and the report of the Federal Reserve System (FRS) on industrial production for March, submitted before the start of the trading session.According to the report, the volume of industrial production increased in comparison with the previous month, only 0.1%, while economists predicted growth rate on a monthly basis on 0,7%.In addition, pressure on the paper provided investor concern problems with the budget deficit of Greece, which vaguely resemble the fiscal problems of the United States, behind that except that the explosive growth rates for American state bonds until portends.
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The market review for April 14

Bidding on the U.S. stock market on Tuesday, April 13, begin to reverse the quotes.Online stock market session set the record does not justify the hopes of aluminum giant Alcoa Inc., Published after the closing of the previous bidding and led to a fall on Wednesday the Dow Jones below taken on the eve of the level of 11000 points.Prior to the session, a report by the Ministry of trade of the country (United States Department of Commerce) on the U.S. trade deficit in February 2010. That the trade deficit has grown over the revised value for January 2010. and amounted to 39.7 billion dollarsAnalysts expected the indicator to 39 billion dollars is believed that the growth of the trade deficit is a positive for the economy, since an increase in imports brought about by increased consumption.In addition, it became known that the prices of imported goods and services in March 2010. grew only by 0,7% compared to the previous month, moreover, that analysts expected to increase by 0,9% on a monthly basis.The pessimism of market participants exhausted within an hour, and major stock market indices were able to return to levels close on Monday, where he spent most of the rest before closing time.

As a result of trading on April 13 the Dow Jones index rose by 13.45 points (0.12%) – up to 11,019.42 points, NASDAQ rose by 8.12 points (0.33%) – up to 2,465.99 points, S &P added 0.82 points (0.07%) and amounted to 1,197.30 points.

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The market review for April 13

Trading on the U.S. stock market on Monday, April 12, began rising through a number of indices of positive corporate news and a weakening of the pressure the Greek factor.16 ministers of the euro area have agreed to provide in the current year credit of Greece in the amount of 30 billion euros and 10 billion euros will be allocated to the IMF. In addition, it was decided that in case of a loan Greece will pay for it for about 5% per annum.The Minister of Finance of Greece Georgios PAPACONSTANTINOU stated that the purpose of Athens today is to continue borrowing from external markets without activation mechanism of financial assistance from the European Union.That is, Greece demonstrates the confidence of their forces, but from the insurance does not refuse. Bidders such a disposition of things more than arranged, and on Monday the long-awaited overcome the Dow Jones psychologically important resistance level of 11000 points.

As a result of trading on April 12 the Dow Jones index rose by 8.62 points (0.08%) – up to 11,005.97 points, NASDAQ rose by 3.82 points (0.16%) – up to 2,457.87 points, S & P added 2.11 points (0.18%) and amounted to 1,196.48 points.
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The market review for April 5

Technical Perspective: Sizeable price swings intraday Thursday, with new yearly highs for the Dow/S&P 500 and an outside day for the Nasdaq Comp (exceeded entire previous range for the week), but the end result was essentially an extension of the established trading range. The non-confirmation from the Nasdaq (and certain sectors) along with an outperformance of the Dow versus the S&P over the last two weeks is a reflection of some increased caution. Initial resistance above the recent highs/range top (1180/1181) is in the 1185/1187 area, followed by an extension target near 1195. Support under congestion and the low (1172/1170) is in the 1166/1165 area.

CALENDARS
Key economic data:
-March ISM Services at 10:00 a.m. ET (consensus 54.0; prior 53.0)
-February Pending Home Sales m/m at 10:00 a.m. ET (consensus -1.0%; prior -7.6%)

Federal Reserve/Treasury:
-None

Key Note/Bond auction results:
-$8 bln in 10-year TIPS reopening at 1:00 p.m. ET read more

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The market review for March 22

Technical Perspective: The major averages formed an outside day (lower low/higher high) with a lower close Friday, which is a weaker sign following Thursday’s indecision and amid the extended technical posture. There were some last minute upticks and Monday’s have been consistently positive of late, so the early portion of the week will provide a key read on the underlying strength of this initial slide off the 52-week highs. There is a minor resistance near 1162, with a more important short-term barrier at 1165/1165. A breach and close under the low raises potential for additional corrective trade.

CALENDARS
Key economic data:
-None

Federal Reserve/Treasury:
-Atlanta President Lockhart speaks on the U.S. economic outlook at 3:45 p.m. ET
-Secretary Geithner speaks on financial reform at 4:30 p.m. ET
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The market review for March 19

Key earnings/guidance since the prior session’s close:
-Palm (PALM) missed by $0.19, ex items, in Q3 (Feb), despite reporting much better-than-expected revenue of $366.0 mln (First Call consensus $316.2 mln). On its call, the company guided for Q4 revenue of less than $150 mln (consensus $305.8 mln), as tepid demand for its smartphones left wireless carriers with piles of excess inventory. It also sees gross margin only in the mid-teens (consensus 26.6%). Shares of PALM are down over 15% premarket.
-Sunpower (SPWRA) beat by only a penny, ex items, in Q4, despite reporting much better-than-expected revenue of $548.0 mln (consensus $490.9 mln). The company issued downside Q1 guidance, seeing EPS of $0.12, ex items (consensus $0.34), and revenue of $330-$350 mln (consensus $427.3 mln). It issued mixed guidance for 2010, seeing EPS of $1.25-$1.65, ex items (consensus $1.78), and revenue of $2.00-$2.25 bln (consensus $2.1 bln). Shares of SPWRA are down 10% premarket.
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The market review for March 11

Wednesday, 10 March, U.S. stock indices continued to slowly climb up. Members of the market encouraged by news of falling wholesale stock in January at 0.2% after falling 1% in December. The sale of companies in the past month increased by 1,3% after December’s 1.2%. Based on these data, investors concluded that despite the pessimistic expectations of business in relation to demand, they will have very soon to replenish reserves that will be a clear sign of economic recovery. Two hours before the end of the auction were published rates of the U.S. budget for February, the deficit which amounted to 220.9 billion dollars, or slightly better than expected (223 billion U.S. dollars). Fivefold increase in the deficit from the January level due to the cost of incentives, including grants to small businesses.

As a result of trading the Dow Jones index rose by 2.95 points (0.03%) – to 10,567.33 points, NASDAQ – at 18.27 points (0.78%) – to 2,358.95 points, S & P – at 5.17 points (0.45%) – up to 1,145.61 points.

Continuing and rapid growth of capitalization of the largest U.S. insurance company American International Group Inc., Adding to the environment is 10,59%. At this time the reason for optimism began to improve the situation with the company’s bonds. Over the past two weeks, their value increased by 13 cents – up 79.5 cents for a paper that was the best result among issuers included in the calculation of indices Bank of America Merrill Lynch. Bondholders reasonably expect to repay the obligations of funds attracted from the sale of the assets of AIG. Surprising the experts is the fact that the division of the insurance company can not sell without a discount to fair value. Other industry representatives also were in demand: Unitedhealth Group Inc. went up by 0,48%, WellPoint Inc. – On 1,71%, MetLife Inc. – On 2,38%, Aflac Inc. – On 2,38%, Aetna Inc. – On 1,34%, Cigna Corp. – On 0,82%.

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