July 31, 2012
Equities Sector Coverage: Wall Street Closes Slightly Lower
 Personal Income rose 0.5% in June, but Spending was flat. S&P / Case Shiller Home Price Index rose 2.2% in May, and was down 0.7% year over year. The Chicago PMI came in at 53.3 in July. The Conference Board reported that their Consumer Confidence Index rose to 65.9 in July, above expectations, but still well below the 90 to 120 neutral range. The Dow Jones Industrial Average traded up slightly to 13,082.66 then down to 13,022.41. The NASDAQ traded up to 2959.62 then down to 2939.95. Asian stocks continued to rally on Tuesday. The Nikkei 225 ended the day at 8,695 – up 0.69%. The Hang Seng ended the day at 19,797 – up 1.08%. European exchanges opened mixed on Tuesday, then closed lower. The FTSE 100 ended the day at 5,635 – down 1.02%. The DAX ended the day (more)…
Will Central Banks Come to the Rescue?
 With so much hanging in the balance, every week has been a big one for the market. Last week, Mario Draghi, President of the European Central Bank, made a major splash for bulls with a big statement backing the euro. Of course, Wall Street will watch closely to see if the ECB will follow through with Draghi’s statement, as well as what Federal Reserve Chief Ben Bernanke will announce on Wednesday. We asked Toni Turner of TrendStar Trading Group for her thoughts on these major developments and how traders and investors may want to approach these uncertain times. EQ: European Central Bank President Mario Draghi made huge statement Thursday, saying that the central bank is ready to do “whatever it takes to preserve the euro.” The markets responded positively, at least initially. What are your thoughts on what this means (more)…
Face-off: Negatives and Uncertainties vs. Positives
 Investor’s first read – Brooksie’s edge before the open Monday July 31, 2012 9:15 a.m. DJIA: 13,073 S&P 500: 1385.30 Nasdaq Comp.: 2945.84 Russell 2000: 791.58 Yesterday’s trading suggested investors were in a “wait-and-see” mode ahead of the FOMC meeting today and tomorrow. This week’s lineup of economic reports may be dire enough to justify Fed action. Clearly the Dallas Fed Survey reported yesterday (see below) suggests the economy is slumping. Obviously, the market hasn’t stabilized and rebounded during the last two months, because the Street is encouraged by the direction of the economy, it is slumping at a disturbing rate. I believe the buoyancy is due to expectations that the Fed will introduce bold new measures to bolster economic activity that will ensure a recovery and justify the buying that has taken place. However, if the Fed doesn’t act, (more)…
China Stocks Post Third-Straight Solid Gain
 The latest wave of optimism about progress solving the European debt problem rolled on Tuesday, carrying China stocks in Hong Kong above an important resistance level. Hong Kong’s Hang Seng Index, which includes numerous Chinese heavyweights, posted its third straight strong rise after European leaders signaled last week they would take concerted action to address their debt crisis. The index rose above resistance at the 250-day moving average, gaining 1.1% to 19,797 on increased turnover. The index of Chinese companies rose 1.6% to 9,674. However if the Euro debt story continues to play out as it has some many times in the past year and a half, the market will soon by disappointed by piecemeal measures to deal with the problem, and global stocks will plunge. Balancing that gloomy prospect are a few glowing developments in China and Hong Kong, (more)…
July 30, 2012
Apple, Google, Microsoft Exasperate Judges With ‘Arrogant’ IP Bickering
 To most of us, tech giants Apple Inc. (AAPL), Google (GOOG), and Microsoft (MSFT) occupy a titanic stature. We may worship at the altar of one, condemn the tyranny of another, and speculate in hushed whispers on the third, only to reverse our stances entirely. Regardless of our opinions, it would be difficult to go even one day without at least brushing against an i-This, a G-That, or a Windows Whatever. They are ubiquitous. Thanks to a surge in patent litigation, their ubiquity has spread from the commercial to the juridical sector where the latter has expressed a distinct lack of amusement at the frequent and far-reaching intellectual properly battles. To several high-profile judges, Apple, Google, and Microsoft are behaving more like petulant children than major corporations. Microsoft vs. Motorola/Google Presiding over a patent dispute between Microsoft and Motorola Mobility, a Seattle judge issued a scathing critique of both firms (more)…
Market Betting Fed Will Act
 Investor’s first read – Brooksie’s edge before the open Monday July 30, 2012 9:05 a.m. DJIA: 13,075.66 S&P 500: 1385.97 Nasdaq Comp.: 2958.09 Russell 2000: 795.91 Friday’s spike in stock prices exceeded my forecast, resulting in a technical breakout for the DJIA and S&P 500, though not for the Nasdaq Comp. and Russell 2000. This is a huge week for economic reports. Will these reports drive stocks up or down ? Good question ! It appears the stock market has been rising in defiance of soft economic readings because the Street has been hoping the Fed (FOMC meets Tuesday/Wednesday) will employ aggressive new measures to stimulate the economy. If we don’t get Fed action this week, more bad readings on the economy this week may be seen as increasing the odds the Fed will act in the near future, i.e.bad (more)…
Euro Optimism Buoys China Stocks
 Basking in the glow of the latest European promise to address its debt crisis, China stocks look like they will maintain a strong tone at least until Thursday when the European Central Bank meets to work on concrete measures to deal with the deteriorating debt problem. If Europe’s leaders can’t walk the walk after talking the talk, recent China stocks gains may well disappear. Hong Kong’s Hang Seng Index climbed 1.6% Monday to 19,585, following a 2.0% surge Friday. The index of Chinese companies rose 1.3% to 9,523. Corporate results scheduled this week from Hong Kong heavyweights like HSBC and Cheung Kong will support the current rally, according to Jackson Wong, vice president of sales at Tanrich Securities. “So, prior to the ECB announcement, we should still see resistance at (the) 250-day moving average, a Bull/Bear line closely watched in (more)…
July 27, 2012
As Sam Sees It: Wall Street Focuses on the Fed As Economy Continues to Struggle
 Each week, we tap the insight of Sam Stovall, Chief Equity Strategist for S&P Capital IQ, for his perspective on the current market. EQ: The market has taken a pretty big tumble this week as mixed earnings, slowing U.S. economy, and Europe’s troubles continue to weigh on investors. The one hope seems to be the Fed making a move. Do you think this has added pressure on the Fed to act sooner? Stovall: I think the Fed reads the newspapers and watches the daily events like everybody else. However, if your mandate is to try to maintain specific levels of economic growth while, at the same time, keep inflation down, the Fed might not be too worried about the overall stock market. Although, it does obviously focus on what is driving the stock market. In the past week, from an economic (more)…
Facebook Selling Climax Monday?
 Investor’s first read – Brooksie’s edge before the open Friday July 27, 2012 9:15 a.m. DJIA: 12,887.93 S&P 500: 1360.02 Nasdaq Comp.: 2893.25 Russell 2000: 777.11 TODAY: Facebook (FB) looks like it is headed for a classic selling climax, possibly Monday during the first 10 minutes of trading and below $20 a share. (See below). Yesterday’s spike in prices was a smidge more than I projected, but I am still wary that a sustained surge now has enough momentum to follow through. Market action during the next two weeks will be critical in determining whether we get a “push,” or a slide. I think there enough uncertainties overhead to prevent a big move up. The two biggies are the November election and the “Fiscal Cliff.” The unsettling chatter about the “cliff” will intensify in coming months as debate about tax increases and spending (more)…
Big Central Banks Rescue China Stocks, for Now
 Hope central banks in Europe and the U.S. would pump more money into the global economy rescued China stocks from a dismal week. Hong Kong’s Hang Seng Index plunged below the 19,000 support level early in the week, but stabilized in mid-week on the prospect of monetary easing by the U.S. Federal Reserve Board. Then the index surged 2.0% Friday when the president of the European Central Bank vowed to support the Euro. For the week the Hang Sang regained the 19,000 level but fell 1.9% to 19,275 in thin turnover. The index of Chinese companies sank 1.8% to 9,399. Now investors will be eager to see if the central banks come up with strong measures to match high hopes. “So for the upcoming meeting held on Wednesday (by the Fed) and Thursday (by the ECB), we have to see (more)…
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