Indexes were quite oversold yesterday and we saw a nice reflex rally Friday to offset that as oil bounced sharply. The S&P 500 gained 1.95% and the NASDAQ 1.66%. Despite today’s jump, for the week the S&P 500 lost 0.8% and the NASDAQ dropped 0.6%. In the larger picture today’s rally means nothing technically. U.S. retail sales rose 0.2% in January, above the 0.1% expected gain.Continue reading
More signs of a “different” market – two days of Janet Yellen didn’t push the market up as we’ve seen nearly every time Bernanke/Yellen have worked their magic post 2008. Indexes yet again gapped down and not until the last hour or so did some buying come in, to minimize losses. The S&P 500 fell […]Continue reading
Indexes gapped up sharply as they have become accustomed to rallying on any Janet Yellen appearance but in another sign this time “is different” that rally mostly petered out by end of day. The S&P 500 fell 0.02% while the NASDAQ added 0.35%.
In prepared remarks, the Fed chief said financial conditions “have become less supportive to growth” and acknowledged “downside risks” largely stemming from uncertainty about the health of the Chinese economy. “Janet Yellen had to be dovish enough so as not to spook the market but hawkish enough to signal that the economy is still growing and she achieved that,” said Kelly Bogdanov, vice president and portfolio analyst at RBC Wealth Management.Continue reading
After a moderate gap down to open the day indexes traded in a narrow range as most seem to be waiting for Yellen testimony; bulls yearning for her to ride in on a white horse and bulls remembering how central bankers have chopped their heads off constantly for 6 years. We’ll see if any such drama hits tomorrow. The S&P 500 fell 0.07% while the NASDAQ dropped 0.35%.
“There’s a real likelihood that she comes out and acknowledges the weakness in the economy here and overseas,” said Robert Pavlik, chief market strategist at Boston Private Wealth. “I think that will be taken by the market as a positive.” “There could be some growing optimism ahead of Janet Yellen’s testimony. She has in the past had the ability to push markets higher, although that’s diminished in recent years,” said Randy Frederick, managing director of trading and derivatives at Charles Schwab. Randy Warren, chief investment officer at Warren Financial Service, said “there is a good chance that Yellen says ‘we’re not remotely close to our 2 percent inflation target.” “People don’t want to get caught short.”Continue reading
New week, same market. Indexes gapped down sharply to open and nothing much changed all session as buyers were on strike. The S&P 500 fell 1.42% and the NASDAQ 1.82% – a bit of a rally in the closing 30 minutes pulled markets off their absolute lows. Fed Chair Janet Yellen’s testifies to Congress on Wednesday and Thursday; if the pattern holds she should try to talk up markets by being very dovish.
“Through last Friday’s close, 314 companies in the S&P 500 have now reported 4Q 2015 results,” Nick Raich, CEO of The Earnings Scout, said in a note. “Collectively, 72% of those companies have seen their next quarter’s (i.e. 1Q 2016) EPS estimates drop 4.81% after reporting.”Continue reading