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.Continue reading
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 Ticker.tv 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.Continue reading
All major indexes opened up Tuesday but by end of session only the NASDAQ remained in the green as the biotech sector had some merger and acquisition activity in it. The S&P 500 fell 0.15% while the NASDAQ rose 0.39%. The earnings onslaught continued.
The NASDAQ has quickly recovered all of last Friday’s losses now. The S&P 500 remains range bound.Continue reading
Indexes had a solid day as a morning lull was followed by buyers stepping in. The S&P 500 gained 0.52% and the NASDAQ 0.43%.
The stock buyback tsunami continues unabated – probably the untold story of this rally. Cheap debt financing has fueled a massive buyback spree which has taken a lot of supply of stock off the market. And since earnings are per share – when the per share amount goes down we get a nice boost.
In 2014, while the S&P 500 rose to record highs, component companies spent $553 billion on share repurchases, according to S&P Dow Jones Indices data – a 16.3 percent increase from the previous year and four times as much as they did in 2009. The buyback spree has accelerated this year. Pending and completed buybacks at all U.S.-based traded companies in the first quarter rose to $179.7 billion compared with $124.2 billion in the first quarter of 2014, up almost 45 percent.
Buybacks may lift earnings per share of companies in the Standard & Poor’s 500 index by between 1.5 and 2 percentage points this year, according to estimates from Voya Investment Management in New York. With earnings estimates now calling for 1.5 percent growth for all of 2015, buybacks could make the difference between positive and negative growth in S&P 500 EPS.
It was another good day for the indexes and oil as they moved in concert. The S&P 500 gained 1.44% and the NASDAQ 1.09%. Factory orders for December posted a greater-than-expected decline of 3.4%. Analysts expected a decline for the month, especially with Monday’s weaker ISM manufacturing numbers.Continue reading
Indexes opened quite significantly down on a number of geopolitical items (Russia, Gaza) but a steady line of buyers came in throughout the session and by the end of the day losses were minimal. The S&P 500 fell 0.23% and the NASDAQ 0.17%. There was not much going on in the economic sphere; most were discussing the issues overseas and if there will be any contagion.Continue reading
Stocks continued a very volatile week, as we saw another bounce today off short term oversold levels. The S&P 500 added 1.13% and the NASDAQ 1.77%. Facebook’s large gain, which we discussed yesterday, helped lift many boats in the tech sector – Twitter and LinkedIn both had very large gains. January will be a down month and some believe a bad start to the year bodes ill for the entire year but some analysis today noted: “In 12 of the 21 Januarys since 1960 in which stocks traded lower have seen the subsequent 11 months trade higher including four of the last five instances.”Continue reading
It is getting frothy out there. We are in the midst of yet another V shaped rally off a bottom, similar to so many during the quantitative easing era. Earnings from Google (GOOG) yesterday seemed to light a fire under all the momentum type of stocks, especially the technology type today. The NASDAQ surged 1.32% and the NASDAQ gained 0.65%, as we have seen an almost straight up move since a week ago Wednesday. We don’t show the 5 day moving average on our charts since it is a very short term indicator but the indexes are as far above their 5 day moving average than they have been at any point in 2013. So we are at a bit of an extreme level.Continue reading