Re: DJIA up or down

by **Cals** Mon 27 Jan 2014, 01:45

Wall St Week Ahead U.S. stocks may fall again as Fed stays course

Business & Markets 2014

Written by Reuters

Saturday, 25 January 2014 10:24

NEW YORK (Jan 25): Wall Street managed to avoid major selloffs in 2013, but bears look ready - and anxious - to take command.
U.S. stocks could be set for another selloff next week as the Federal Reserve is expected to announce it will keep withdrawing its economic stimulus, further pressuring equities already roiled by a flight from emerging markets.
Investor sentiment turned strongly bearish this week as emerging markets were hit by both country-specific problems and the realization that the Fed's trimmed bond-buying program reduces the liquidity that has boosted higher-yielding emerging market assets and put a floor under U.S. stock prices.
The Fed's plan to gradually withdraw its stimulus has long been expected to lead to a pullout from emerging markets. But the prospect of an economic slowdown in China added to concerns on Friday that emerging markets, particularly those with large current account deficits, may struggle to support their currencies this year.
The Fed's policy-setting committee meets on Tuesday and Wednesday. Another cut to the monthly purchase of Treasuries and mortgage-backed securities - to $65 billion from the current $75 billion - is all but certain, based on policymakers' recent comments.
"Is the Fed going to zigzag with the taper, based on what we already knew, that emerging markets were vulnerable to liquidity being taken out of the system in the U.S.?" said Quincy Krosby, market strategist at Prudential Financial in Newark.
"It's a moral hazard," she said, adding that regardless of when the Fed withdraws further, the expected market reaction will be roughly the same.
The broad selloff in emerging markets over the past two sessions translated into the worst week for global stocks in seven months. The S&P 500 slid 2.6 percent, its largest weekly decline since June 2012.
It would be hard, however, for the Fed to skip a taper, citing a pullback in the stock market, when the S&P 500 is just 3.1 percent below its record closing high, set last week.
SOME SEE 'BUY' SIGNS
Economic data next week, including new home sales and consumer confidence, is expected to continue to paint a picture of recovery in the U.S. economy, which could help bring buyers back into U.S. equities.
"There are good domestic reasons to expect the U.S. economy to be doing well over the year to come, and our central expectation is that while U.S. markets could take a temporary hit (due to the selloff in emerging markets), the shock will not be a major one for the U.S. economy," Deutsche Bank analysts wrote in a note released on Friday.
The Fed's promise to keep interest rates near zero for an extended period could also help bring back buyers. The question for investors is: How far will the market pull back before cash flows back in?
"Ultimately, it's going to be a buying opportunity," Krosby said. "The market needs to figure out how much of the move has been liquidity driven and what was based on earnings."
The technical picture deteriorated somewhat as the S&P 500 closed below its 50-day moving average for the first time since early October. But this week's selloff also brought momentum indicators down from overbought levels.
In a signal that the selling on Wall Street may be overextended, investors were willing to pay more for spot protection against a drop in the S&P 500 than three months down the road.
The last time the spread between the CBOE Volatility Index and three-month VIX futures turned negative was in mid-October, shortly after a 4.8 percent pullback in the S&P 500 opened the door to the last leg of the 2013 market rally.
APPLE EARNINGS TO START THE WEEK
Aside from the Fed and economic data, traders will also face next week's flood of earnings, including results from Dow components Caterpillar, DuPont, Pfizer, AT&T and 3M.
Technology giants like Google and Facebook will also post quarterly scorecards. Apple, the largest U.S. company by market capitalization, will set the stage after the closing bell on Monday.
"Earnings have not been as stellar as everyone is making them out to be. You see massive stock buybacks, which have given that impression," said Ken Polcari, director of the NYSE floor division at O'Neil Securities in New York.
"Revenues are flat to down - not a good sign. At this point in the cycle, people want to see revenues up."
With about a fourth of the S&P 500 components having reported earnings so far, 63.9 percent have beaten analysts' expectations. Over the past four quarters, 67 percent of companies have exceeded bottom-line estimates. - Reuters

by **kppl** Tue 28 Jan 2014, 00:59

10% correction coming....

by **kppl** Fri 31 Jan 2014, 02:35

monster rebound in SPY IWM DIA etfs today. Support holding up.

by **Cals** Fri 07 Feb 2014, 08:34

US Stocks Wall St rallies on labor market data, earnings

Business & Markets 2014

Written by Reuters

Friday, 07 February 2014 07:11

NEW YORK (Feb 7): U.S. stocks posted their best day of the year on Thursday after a drop in applications for unemployment insurance boosted confidence in the economy and Disney's results overshot expectations.
The rally came ahead of the widely-followed payrolls report for January due Friday, which some are expecting to be affected by the extreme weather that hit much of the United States. December's number was a much-lower-than-expected 74,000 and an upward revision wouldn't be a surprise.
Initial claims for state unemployment benefits declined 20,000 last week to a seasonally adjusted 331,000. While the data has no direct bearing on January's employment report it bodes well for the jobs market and the overall economy.
"Investors recently have been choosing to look at the glass half empty data and not focus on the positives," said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.
"Bad weather causes cancellations, flight problems, business closings. I'm hoping we get an upward revision to the December (payrolls) number tomorrow, but if we get a lousy number I'm not going to crawl under a rock."
Recent soft data added to jitters about growth in China and a selloff in emerging market currencies and stocks. But a near 6 percent decline on the S&P 500 from its record high last month to the session low Wednesday was seen by some as a buying opportunity, as earnings continue to grow.
Walt Disney was the most recent bellwether to beat expectations as its profit topped estimates, sending its shares up 5.3 percent to $75.56. Disney led gains on both the Dow industrials and S&P 500.
According to Thomson Reuters data, of the 330 companies in the S&P 500 that have reported earnings through Thursday morning, 68.8 percent have topped Wall Street expectations, above the 63 percent beat rate since 1994 and the 67 percent rate for the past four quarters.
The Dow Jones industrial average rose 188.3 points or 1.22 percent, to 15,628.53, the S&P 500 gained 21.79 points or 1.24 percent, to 1,773.43 and the Nasdaq Composite added 45.57 points or 1.14 percent, to 4,057.122.
It was the largest daily percentage gain for the S&P 500 and Dow since mid-December. However, the S&P was on track for its fourth consecutive negative week, a streak not seen since July-August of 2011.
Green Mountain Coffee Roasters, one of the most shorted stocks on Wall Street, surged 26.2 percent to $102.10. Coca-Cola bought a 10 percent stake for $1.25 billion and said it would help launch Green Mountain's new cold drink machine.
Coke shares gained 1.1 percent to $38.03 while home beverage device maker SodaStream International rose 7.2 percent to $38.35.
The Nasdaq also received a boost from Akamai Technologies , which soared 20.6 percent to $57.18 after forecasting better-than-expected results.
Bucking the bullish trend, Spirit AeroSystems shares fell 19.6 percent to $26.51. The major supplier of components to Boeing and Airbus, reported a quarterly loss on charges tied mainly to the Boeing 787 program.
After the closing bell, LinkedIn shares fell 8 percent following its results and outlook.
About 6.9 billion shares traded on U.S. exchanges, below the 7.9 billion average of the past five sessions, according to data from BATS Global Markets.
On the NYSE, advancing issues outnumbered those falling by a ratio of more than 3 to 1. On the Nasdaq, more than nine issues rose for every five that fell.
Other economic data showed the U.S. trade deficit widened more than expected in December as exports fell, which could see the advance fourth-quarter growth estimate trimmed. Nonfarm productivity rose more than expected in the fourth quarter, but weak unit labor costs pointed to subdued wage inflation. - Reuters

by **Cals** Mon 10 Feb 2014, 05:36

Published: Saturday February 8, 2014 MYT 4:48:00 PM
Updated: Saturday February 8, 2014 MYT 4:51:07 PM
Wall St rallies to snap three week skid
NEW YORK: U.S. stocks jumped on Friday, giving the S&P 500 its first weekly gain in four as the impact of a weak reading on the labor market was dulled by harsh weather conditions and traders focused on expectations of further economic strength.
Nonfarm payrolls added 113,000 jobs in January - well shy of the forecast for 185,000. December payrolls were revised upward by only 1,000 to 75,000. The U.S. unemployment rate in January hit a five-year low of 6.6 percent, slightly above the 6.5 percent level that Fed officials have said would prompt them to consider raising benchmark interest rates from near zero.
The rapid drop in U.S. unemployment will make re-crafting the Federal Reserve's easy-money promise a top priority for new Chair Janet Yellen, who will probably avoid tying policy to specific targets in the labor market.
Strong job gains in construction hinted that cold weather was probably not a major factor in January job creation. Traders appeared to expect that the January numbers will be revised upward next month. The data also showed job gains in manufacturing.
"The BLS can tell us there was no abnormal weather in this January number, but I've been freezing for two months. I can't believe there was no weather impact to this number," said Phil Orlando, chief equity market strategist at Federated Investors, in New York.
"So intellectually I am sort of discounting that, and saying I'm going to give the employment report a hall pass until we get into the spring."
Concern about recent soft U.S. data added to worries about growth in China and a selloff in emerging market currencies and equities to push stocks sharply lower worldwide in the past few weeks.
Near-term concerns have subsided, however, and the spot price for protection against drops in the S&P 500 is again below front-month contracts, following a brief inversion of that curve. The CBOE Volatility Index fell 11.3 percent to end at 15.29 on Friday after trading above 21 earlier this week. One-month VIX futures slid 9 percent to 15.47.
As investors await a batch of fresh data in the coming month, previous expectations for sustained U.S. economic growth are still supporting stock prices.
The S&P 500 closed above its 14-day moving average, a level it hadn't traded above since Jan. 23. The 2.6 percent gain for the past two sessions marked the S&P 500's best two-day performance in four months.
The Dow Jones industrial average shot up 165.55 points or 1.06 percent, to end at 15,794.08. The S&P 500 gained 23.59 points or 1.33 percent, to close at 1,797.02. The Nasdaq Composite added 68.739 points or 1.69 percent, to finish at 4,125.861.
For the week, the Dow rose 0.6 percent, the S&P 500 gained 0.8 percent and theNasdaq advanced 0.5 percent.
The S&P 500 fell as much as 6 percent this week from a record closing high set on Jan. 15. Before Friday's gains, the benchmark index was facing its fourth weekly decline in a row - a losing streak not seen since July and August in 2011.
"I'm willing to give the market the benefit of the doubt, particularly with the prices 6 percent lower than they were three weeks ago," Orlando said.
The tech sector got a lift from Apple Inc after the iPhone maker said it bought $12 billion worth of stock via an accelerated buyback program and $2 billion more from the open market in the two weeks since it reported earnings. Apple's stock gained 1.4 percent to close at $519.68.
News Corp Class A shares jumped 8.7 percent to end at $17.41 a day after the publisher of the Wall Street Journal said cost cuts helped push its profit well above analysts' forecasts.
The stock of online travel agency Expedia soared 14.3 percent to $74.45, making it the S&P 500's best performer a day after the company posted a higher-than-expected quarterly profit. Shares of rival Priceline.com added 5 percent to close at $1,195.39. Orbitz Worldwide gained 4.2 percent to $7.43 and TripAdvisor jumped 9.5 percent to $84.45.
Thomson Reuters data showed that of the 343 companies in the S&P 500 that had reported earnings through Friday morning, 67.9 percent have topped Wall Street's expectations, slightly above the 67 percent beat rate for the past four quarters and ahead of the 63 percent rate since 1994.
Bucking Friday's upward trend, shares of LinkedIn fell 6.2 percent to $209.59 after the online network for professionals gave revenue forecasts that were below those of analysts.
Shares of Fairway Group Holdings Corp lost 29 percent to close at $8.12 a day after the upscale grocery store chain posted quarterly results and announced changes in management.
Volume was light, with about 6.09 billion shares traded on U.S. exchanges, below the 6.94 billion average in January, according to data from BATS Global Markets.
Advancing stocks outnumbered declining ones on the New York Stock Exchange by a ratio of more than 3 to 1. On the Nasdaq, more than two stocks rose for every one that fell. - Reuters

by **kppl** Wed 12 Feb 2014, 23:28

Inspiration:

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by **kppl** Wed 12 Feb 2014, 23:58

more one the above:
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by **kppl** Tue 08 Apr 2014, 00:53

beep beep

tech stock sell off

QQQ etf down 4 bucks....

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by **kppl** Thu 08 May 2014, 00:09

Yellen cites housing, geo-political risk to economy

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DJ is holding up....

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