Market Recap Aug 11, 2015


China moved markets up yesterday and moved markets down today. The S&P 500 fell 0.96% and the NASDAQ 1.27% – both indexes finished a bit off their lows. China continues to wave their magic wand to support markets and the economy as the People’s Bank of China depreciated the yuan by nearly 2%.

The drop in the daily peg to 6.2298 renminbi against the U.S. dollar, down from 6.1162 on Monday, was the largest one-day move in more than two decades and took the currency back to levels from three years ago. The central bank described the decision as a “one-off depreciation.” “I think the market’s perception is if China is doing that they’re really worried about their economy,” said Jason Leinwand, managing director at Riverside Risk Advisors. “Any currencies that have direct ties with China will be weakened.”

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Market Recap Aug 10, 2015


A rally in China helped spark a market full of near term oversold stocks – the S&P 500 gained 1.28% and NASDAQ 1.16%. Most S&P 500 members have released results this earnings season, of which 74% beat profit estimates and about half topped sales projections. Analysts now project a more modest drop in second-quarter earnings, calling for a 2.1% fall instead of a 6.4% decline a month earlier.

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Market Recap Aug 4, 2015


Listless trading continued as a plunge in Apple (AAPL) after it fell below its 200 day moving average caught most people’s focus. Some comments out of a Fed member also caused some consternation but losses were mild as the S&P 500 fell 0.22% and the NASDAQ 0.19%.

The major averages briefly extended losses after Atlanta Fed President Dennis Lockhart, a voting member, told the Wall Street Journal that the economy appears ready for a rate hike in September. Analysts noted slight surprise at the unscheduled remarks.

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Market Recap Aug 3, 2015


U.S. indexes were in the red most of the day but losses were light; the S&P 500 fell 0.28% and the NASDAQ 0.25%. The ISM Manufacturing report was below expectations and is nearing the 50 level that separates expansion from contraction, coming in at 52.7 versus the 53.5 forecast. Construction spending rose 0.1 %, the smallest gain since January. Keep an eye out later this week for ISM Non Manufacturing and ADP Employment (Wednesday) and the July employment data (Friday).

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Market Recap Jul 22, 2015


All things considered, Wednesday could have been a much worse day considering the big drop in Apple (AAPL) and Microsoft (MSFT) – both larger components of many indexes. The S&P 500 only fell 0.24% while the NASDAQ fell 0.70%. Existing home sales rose 3.2% from the previous month in June, their highest levels in over eight years.

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Market Recap Jul 21, 2015


Indexes were generally in the red as IBM really weighed on the Dow (down 1%). The S&P 500 fell 0.43% and NASDAQ 0.21%. Earnings have returned the forefront as they will the next few weeks, with Apple (AAPL) dominating tonight. You can check out Blain’s real time reaction on to the Apple’s earnings – if you have small children turn down the volume. 😉 So we just had the biggest 1 day market cap gain with Google (GOOG) a few days ago ($65B) and today we have a $50B drop in Apple afterhours. Looks like tomorrow will be a real rough day on the NASDAQ as Apple is a massive component and Microsoft in a big one too.

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Market Recap Jul 20, 2015


We turned back bullish early last week and thus far the market has not said that is wrong. Monday the S&P 500 gained 0.08% and the NASDAQ 0.17% – this is typical bull market behavior… in between the big up days you have very mild down days or sideways action. Greece is off the table, earnings are in play, the market seems fine with the Fed raising rates sometime later this year, and speculative fervor has returned to certain sectors of the market. The long awaited IPO of Paypal (PYPL) helped lift spirits among tech stocks. There was no major economic news on the day.

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Market Recap Jul 9, 2015


Indexes shot up at the open as China bounced overnight but gradually sold off most of those gains during the trading day. At market close the S&P 500 gained 0.23% and the NASDAQ 0.26%.

The Greek government was expected to submit reform proposals by midnight Thursday. Athens on Wednesday formally applied for a three-year loan. A government source told Reuters that Athens will ask for parliament’s approval on Friday to negotiate on the text of “prior actions” that could form the basis of a cash-for-reforms deal with creditors. Political talks over Greece must produce a strong outcome on Sunday for the European Central Bank to provide continued support, while there’s only “very low” leeway to reprofile Greece’s debt, euro zone leaders said, according to Reuters.

Fun fact – and a potential contrarian indicator (i.e. a positive for bulls): Short sales are at their highest level since the financial crisis.

….short sellers increased their bearish wagers in June to the highest level since the financial crisis, according to data compiled by the New York Stock Exchange. The number of shorted shares increased 3.3 percent from a month ago to 16.2 billion in June, the most since September 2008.

Betting against stocks has been a losing strategy since 2009 as the Standard & Poor’s 500 Index rallied more than 200 percent and all but 22 members climbed. The HFRI Short Bias Index of equity hedge funds has fallen in five of the past six years, a performance not seen in 2 1/2 decades of data.

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