Market Recap Nov 13, 2015


While markets came into the week quite overbought and needing a pullback, we want to see mild type pullbacks and this week was more than mild. Especially in light of not many catalysts with most earnings done with and most major economic reports off the table. Friday the S&P 500 fell 1.12% and the NASDAQ 1.54%; tech stocks were weak due to the Cisco report we mentioned yesterday. The major averages ended the week down more than 3.5%, their worst since the week ended August 21.

October retail sales showed an increase of 0.1%, below expectations of a 0.3% rise. Retail sales excluding automobiles, gasoline, building materials and food services rose 0.2%. Sales at auto dealerships fell 0.5 percent last month after rising 1.4 percent in September. The decline was surprising given that automakers reported strong sales for October. The producer price index for October fell 0.4%, after falling 0.5% the previous month.

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Market Recap Nov 11, 2015


A second quiet session as indexes digest a big month+ move; today the S&P 500 and NASDAQ both fell 0.32% in a choppy session where markets mostly stayed near the unchanged line. Data remains quiet in the U.S. so eyes turn overseas as people try to gauge what is happening in China. Chinese data out overnight showed firmness in the consumer, with retail sales up 11% year-over-year in October, up slightly from 10.9% in September. Industrial production edged lower in October and missed expectations. As we wrote yesterday, we are in a bit of a quiet period post earnings season and post a heavy week of economic data…and ahead of the December Fed meeting.

“There’s a lot of news behind us and not a lot of potentially market-moving news ahead of us in the short term,” said James Gaul, a portfolio manager at Boston Advisors LLC, which oversees $2.8 billion. “It seems like it’s going to be quiet because there aren’t a whole lot of obvious catalysts right now.”

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Market Recap Nov 5, 2015


The major indexes continue to pull back gently as bulls remain in control. The S&P 500 fell 0.11% and the NASDAQ 0.29% as briefly jumping up at the open. People mostly sat on their hands today as they await tomorrow morning’s employment data. In a Thursday speech, Atlanta Fed President Dennis Lockhart said the case for a December hike will continue to strengthen going forward. He also said that labor market slack is “substantially” gone.

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Market Recap Nov 4, 2015


A solid day for bulls as we saw a shallow pullback from somewhat overbought conditions. The S&P 500 fell 0.35% and the NASDAQ 0.05%. Fed Chair Janet Yellen said Wednesday morning a December rate hike is a “live possibility,” depending on the data. In the afternoon, New York Fed President William Dudley told reporters that he would “completely agree” with Yellen’s remarks that December is still a possibility.

In economic news, the non-manufacturing ISM October report showed a rise to 59.1 from 56.9 the prior month. That’s a big jump and shows far better strength then the manufacturing number we saw Monday which was barely above 50. The ADP employment report showed private companies added 182,000 jobs in October.

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Market Recap Oct 23, 2015


It was a great week for the market as conditions were overbought to start the week and instead of any major selling, indexes consolidated nicely just below key congestion areas – then central bankers words and actions Thursday and Friday spiked markets upward. Bulls could not ask for more. The S&P 500 gained 1.10% and the NASDAQ 2.27% as huge moves by and Alphabet (i.e. Google) lifted tech stocks. The People’s Bank of China cut interest rates for the sixth time since November to 4.35 percent, effective from Oct. 24.

“The hope for more ECB support and the rate cut in China should help stabilize those weakening sales trends and other deteriorating economic data points,” Nick Raich, CEO of The Earnings Scout, said in a note.

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Market Recap Oct 22, 2015


Yum yum yum, the delectable taste of central bank easing in the morning. Indexes shot up premarket as European Central Bank head Mario Draghi held out some goodies and roared all day as the S&P 500 gained 1.66% and NASDAQ 1.65%. In economic news (not that anyone cared because central bank easing is all that matters) September existing home sales, rose 4.7% to 5.55 million.

ECB President Mario Draghi said the bank will consider adding to its bond-buying program this year. Draghi’s remarks pushed the euro down about 2% against the dollar. “We were hoping the ECB would remain open to further easing, and it appears as though they are,” said Art Hogan, chief market strategist at Wunderlich Securities. (translation: “Cmon get happy!”)

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Market Recap Oct 19, 2015


Indexes continue to exhibit better behavior. The best way to work off overbought conditions is sideways action and we saw that again today. The S&P 500 gained 0.03% while the NASDAQ added 0.38%. Over a fifth of S&P 500 companies are scheduled release quarterly results this week. Overnight, China reported a third-quarter gross domestic growth figure of 6.9%, slightly above the expected 6.8%, but also its lowest in six years. China also reported industrial production rose 5%, below the expected 6% increase. How valid any of these numbers are from the Chinese government is up to your imagination. And theirs!

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Market Recap Oct 16, 2015


It has been a good October for U.S. indexes, in a month that is often fraught with danger. The bad news of the employment data of 2 weeks ago has lifted spirits. :) A quiet session ended with a spur of buying in the closing hour which lifted the S&P 500 up 0.46% and the NASDAQ 0.34%. Thus far in the month the S&P 500 is up 5.9% and the NASDAQ 5.8% as a lot of the most beaten down stocks of 2015 take the lead.

An interesting chart from Bloomberg showing dollar down = global stocks up since the bad employment data. Dollar down because no Federal Reserve rate hike.

“You may have no rate hike this year from the Federal Reserve and an extension of stimulus in Europe and in Japan so that’s giving a boost to equities,” said John Plassard, a senior-equity sales trader at Mirabaud Securities in Geneva.

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