Dan Stewart CFA®, President
NorAm Asset Management
3,24, 2014
The markets continue with their “choppiness” giving up earlier gains Friday with all of the indices declining. While the DOW, S&P 500, and S&P Midcap indices were down just moderately, the NASDAQ and Russell 2000 Small Cap indices were the worst performers.
The NASDAQ was down almost -1% and the Russell 2000 Small Cap declined -.44%. Biotechs had an especially bad day along with mega weights Google (GOOG) and Cisco Systems (CSCO) helping pull the NASDAQ lower.
Treasury yields eased as bond prices rose. Gold had a positive day up over .5%. It was a “risk off” day, albeit a mild one.
On the political front over the weekend, Turkey shot down a Syrian fighter plane attempting to support the rebels. This will only escalate tensions in the Middle East.
Russia is still flexing its muscle on the Eastern boarder of the Ukraine after annexing the Crimea. The West has given “stern” warnings regarding the buildup. Either of these situations could make investors wary to take on additional risk if there is concern over an escalation on either front.
Another thing that may put pressure on our markets today was China’s PMI reported last night. Their PMI came in at 48.1, below estimates of 48.7. Anything below 50 represents contraction. That said, the Asian markets are up in overnight trading due to expectations of Chinese stimulus.
While the markets are in this sideways, directionless pattern, it is best to keep your powder dry and hold off establishing new positions. The exception being if you find an individual stocks demonstrating lots of strength bucking the trend. We continue to develop a list of stocks so that when the time is right, we can add additional positions.
On a side note, there is an interesting development between Apple (AAPL) and Comcast (CCV). They are for a joint venture to provide streaming TV service using Apple set top boxes with Comcast’s cables. The idea is to allow users to get high speeds avoiding congestion over the internet while getting a “smart” box.
Talks are still in the early stages but it could provide another revenue stream for both parties. It could also put pressure on other media and cable providers.
We only have 2 economic reports today including the Chicago Fed National Activity Index. We have no companies reporting on the S&P 500, and we only have a few stocks reporting in the broader markets. They are listed below.
Remember to tune into The Wall Street Shuffle Saturdays on 1190 AM at 10 a.m. in DFW. We have a financial and market focus.
I hope you enjoy the show. If you have any investment questions you would like discussed on the air, just e-mail me a danny@thewallstreetshuffle.com and we will address your questions.
If you have any specific investment questions in which you would like personal advice, e-mail me at dstewart@old.noramassetmanagement.com and I will be happy to respond.
Dan Stewart CFA®
NorAm Asset Management
Economic Reports Today:
Chicago Fed National Activity Index
Markit US Manufacturing PMI
Some Notable Earnings Reports Today:
Luby’s (LUB)
Sonic (SONC – after market)
The information presented is for educational and entertainment purposes only. Opinions and information expressed are based upon information considered reliable. However, factors are constantly changing and should not be relied upon. You need to do and verify your own research.
Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.
Investments involve risk and unless otherwise stated are not guaranteed.
3 24 2014
The markets continue with their “choppiness” giving up earlier gains Friday with all of the indices declining. While the DOW, S&P 500, and S&P Midcap indices were down just moderately, the NASDAQ and Russell 2000 Small Cap indices were the worst performers.
The NASDAQ was down almost -1% and the Russell 2000 Small Cap declined -.44%. Biotechs had an especially bad day along with mega weights Google (GOOG) and Cisco Systems (CSCO) helping pull the NASDAQ lower.
Treasury yields eased as bond prices rose. Gold had a positive day up over .5%. It was a “risk off” day, albeit a mild one.
On the political front over the weekend, Turkey shot down a Syrian fighter plane attempting to support the rebels. This will only escalate tensions in the Middle East.
Russia is still flexing its muscle on the Eastern boarder of the Ukraine after annexing the Crimea. The West has given “stern” warnings regarding the buildup. Either of these situations could make investors wary to take on additional risk if there is concern over an escalation on either front.
Another thing that may put pressure on our markets today was China’s PMI reported last night. Their PMI came in at 48.1, below estimates of 48.7. Anything below 50 represents contraction. That said, the Asian markets are up in overnight trading due to expectations of Chinese stimulus.
While the markets are in this sideways, directionless pattern, it is best to keep your powder dry and hold off establishing new positions. The exception being if you find an individual stocks demonstrating lots of strength bucking the trend. We continue to develop a list of stocks so that when the time is right, we can add additional positions.
On a side note, there is an interesting development between Apple (AAPL) and Comcast (CCV). They are for a joint venture to provide streaming TV service using Apple set top boxes with Comcast’s cables. The idea is to allow users to get high speeds avoiding congestion over the internet while getting a “smart” box.
Talks are still in the early stages but it could provide another revenue stream for both parties. It could also put pressure on other media and cable providers.
We only have 2 economic reports today including the Chicago Fed National Activity Index. We have no companies reporting on the S&P 500, and we only have a few stocks reporting in the broader markets. They are listed below.
Remember to tune into The Wall Street Shuffle Saturdays on 1190 AM at 10 a.m. in DFW. We have a financial and market focus.
I hope you enjoy the show. If you have any investment questions you would like discussed on the air, just e-mail me a danny@thewallstreetshuffle.com and we will address your questions.
If you have any specific investment questions in which you would like personal advice, e-mail me at dstewart@old.noramassetmanagement.com and I will be happy to respond.
Dan Stewart CFA®
NorAm Asset Management
Economic Reports Today:
Chicago Fed National Activity Index
Markit US Manufacturing PMI
Some Notable Earnings Reports Today:
Luby’s (LUB)
Sonic (SONC – after market)
The information presented is for educational and entertainment purposes only. Opinions and information expressed are based upon information considered reliable. However, factors are constantly changing and should not be relied upon. You need to do and verify your own research.
Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation
Investments involve risk and unless otherwise stated are not guaranteed.
3 21 2014
The markets completely reversed course and recouped the losses from yesterday. Seems investors believe all the Fed tapering is much to do about ‘nothing.’
The economic data also gave a boost to the markets. Leading Indicators and Initial Jobless Claims came in better than expected.
Leading growth stocks were mixed, but some performed quite well, especially Chipotle (CMG). The stock was up 2.5%. The overall internals of the market weren’t quite as strong as prices indicate.
Up Volume was 62% on the NYSE, but advancing issues were only 48%. On the NASDAQ, Up Volume was 55% with advancing issues 51%. Also, large caps outperformed small caps.
A move I did make today was to sell my ProShares Ultra Oil (UCO) in order to protect profits. I did this when oil was still slightly above $100/barrel as it looked technically to be weakening. As I write this newsletter, oil is trading around $98.44/barrel so it looked like a good move thus far.
We have very few company earnings and no economic reports on which to focus on today. So overseas news may take front and center. And the Ukrainian Russian conflict seems to be heating up again. So if we get negative political news, it could put pressure on the markets.
We only have no major economic reports out today. We have 2 companies reporting on the S&P 500 and only 2 reporting in the broader markets. They are all listed below.
Remember to tune into The Wall Street Shuffle Saturdays on 1190 AM at 10 a.m. in DFW. We have a financial and market focus.
We will have Tim Gramatovich from Peritus Asset Management who runs the AdvisorShares Peritus High Yield ETF (HYLD) which currently yields 7.6%. We will discuss the Fed’s minutes release and the likely direction of interest rates. And more importantly, what you can do about it.
I hope you enjoy the show. If you have any investment questions you would like discussed on the air, just e-mail me a danny@thewallstreetshuffle.com and we will address your questions.
If you have any specific investment questions in which you would like personal advice, e-mail me at dstewart@old.noramassetmanagement.com and I will be happy to respond.
Dan Stewart CFA®
NorAm Asset Management
Economic Reports Today:
None
Some Notable Earnings Reports Today:
Tiffany’s (TIF – before market)
Darden Restaurants (DRI)
1st Federal Bancshares of Arkansas (FFBH)
Xxia (XXIA)
The information presented is for educational and entertainment purposes only. Opinions and information expressed are based upon information considered reliable. However, factors are constantly changing and should not be relied upon. You need to do and verify your own research.
Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.
Investments involve risk and unless otherwise stated are not guaranteed.
3 20 2014
In yesterday’s newsletter I told you the markets would be quiet tame after the release of the FED’s FOMC meeting minutes and Janet Yellen’s 1st press conference. I stated volume would be light until then, and then the action, or in this case, fireworks, would start.
That is exactly what happened. Yellen confirmed that the FED would continue to taper another 10 billion down to 55 billion per month. She went on to say the FED would keep interest rates for a long period of time, but may begin to raise rates next year.
The markets didn’t like it one bit, and interest rates jumped especially on the short end. The equity markets sold off as well while the dollar strengthened.
This is why I also stated in my article to be patient and don’t trade ahead of the FED. Wait until we have clarity from the FED.
If you took my advice, you may get a great opportunity for a better entry point for any positions you may be considering. Even if the markets received the news positively, it is always better to buy on strength and volume. And if you are patient, more often than not, it will be from a lower entry point.
Trying to guess the bottom is futile. This is known as ‘bottom fishing’ and I haven’t figured out a way to do it consistently, and have never met anyone who could. A falling knife comes to mind.
Anyway, the markets sold off just after the release of the FED’s FOMC minutes release. But then really sold off during Janet Yellen’s press conference. But then the markets staged a mini rally going into the close and recouped about 35% on their losses (see S&P 500 1 Day Graph).
Thus far YTD the S&P is up just under 1%. But leading stocks are still doing well.
This tells me our markets still want to go higher. Our markets are still resilient, but yesterday was likely a foreshadowing of things to come in the not so distant future.
Have your plan in place to take advantage of the up moves, but also have a plan in place to raise cash when we see significant weakness. This should be done in advance so you are not making decisions under fire, it is already predetermined.
We have 4 economic reports today including Initial Jobless Claims. But I will be focused on Existing Home Sales and Philly FED Business Outlook.
We have 3 companies reporting on the S&P 500, 1 on which, Nike (NKE) is included in the DOW. We have 16 stocks reporting in the broader markets. Some of the more notable companies are listed below.
Remember to tune into The Wall Street Shuffle Saturdays on 1190 AM at 10 a.m. in DFW. We have a financial and market focus.
I hope you enjoy the show. If you have any investment questions you would like discussed on the air, just e-mail me a danny@thewallstreetshuffle.com and we will address your questions.
If you have any specific investment questions in which you would like personal advice, e-mail me at dstewart@old.noramassetmanagement.com and I will be happy to respond.
Dan Stewart CFA®
NorAm Asset Management
Economic Reports Today:
Initial Jobless Claims
Philly FED Business Outlook
Existing Home Sales
Leading Indicators
Some Notable Earnings Reports Today:
Nike (NKE)
Lennar (LEN)
ConAgra (CAG)
ClubCorp Holdings (MYCC – before market)
Burlington Stores BURL – before market)
Checkpoint Systems (CKP)
The information presented is for educational and entertainment purposes only. Opinions and information expressed are based upon information considered reliable. However, factors are constantly changing and should not be relied upon. You need to do and verify your own research.
Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.
Investments involve risk and unless otherwise stated are not guaranteed.
3 18 2014
The markets registered the 2nd gain in a row yesterday after Russian President Putin stated he wasn’t interested in any more of the Ukraine. That makes me feel much better.
Total volume increased which is a good sign, and we are resting right on top of resistance for most of the indices. Up Volume was 79% on the NYSE and 76% on the NASDAQ. Advancing issues were 76% and 74% respectively.
If we are able to move above these levels, the markets are heading higher. At this point, Investor’s Business Daily (IBD) would likely switch from ‘Uptrend under Pressure’ to ‘Market in Uptrend.’
I dialed down the volatility 2 weeks ago by selling my 2 leveraged 2x ETFs, SSO & QLD, just before last week’s selloff. Fortunately I sold at the very top of the range thus reducing risks. For the ETF accounts, I would likely increase my equity exposure by reestablishing various ETF positions.
I did, however, take a position in a stock yesterday for the stock accounts. I purchased Under Amour (UA) at $122.3977. The stock closed at $124.44. The company announced a 2 for 1 stock split which really doesn’t change fundamentals in any way, but can give a psychological boost to a stock.
Speaking of fundamentals, Under Amour has strong growth and profits. UA makes high tech athletic wear and shoes, and is stealing market share from other companies in the space, especially Nike (NKE).
The 2 stocks I own that I wrote about yesterday also had a constructive day. Both EQT Corp (EQT) and Facebook (FB) had a constructive day. But the big winner was Chipotle (CMG) which was up 2.8%.
The markets seem to be shrugging off this recent selloff and Russian fears and want to move higher. The big driver today will be FED Chairwoman Janet Yellen giving her 1st press conference around 1 pm CT after the release of the FED’s FOMC meeting minutes release.
We will probably have low volume during morning trading as investors anxiously await Yellen’s comments. Then we will likely see more action as investors interpret her comments.
Most of the important economic data today will be coming directly from the FED regarding the pace asset purchases, or QE. That said, we do have Mortgage Applications as well.
We have 4 companies reporting on the S&P 500. We have 9 stocks reporting in the broader markets. Some of the more notable companies are listed below.
Remember to tune into The Wall Street Shuffle Saturdays on 1190 AM at 10 a.m. in DFW. We have a financial and market focus.
I hope you enjoy the show. If you have any investment questions you would like discussed on the air, just e-mail me a danny@thewallstreetshuffle.com and we will address your questions.
If you have any specific investment questions in which you would like personal advice, e-mail me at dstewart@old.noramassetmanagement.com and I will be happy to respond.
Dan Stewart CFA®
NorAm Asset Management
Economic Reports Today:
MBA Mortgage Applications
Current Account Balance
FED QE3 Pace of Asset Purchases
FED Pace of Treasury Purchases
FED Pace of MBS Purchases
FOMC Rate Decision
Some Notable Earnings Reports Today:
General Mills (GIS – before market)
FedEx (FDX)
Jabil Circuit (JBL – after market)
Cintas (CTAS – after market)
KB Home (KBH – before market)
Vera Bradley (VRA)
Gold Resource Group (GORO)
Guess? (GES – after market)
ExOne (XONE – after market)
The information presented is for educational and entertainment purposes only. Opinions and information expressed are based upon information considered reliable. However, factors are constantly changing and should not be relied upon. You need to do and verify your own research.
Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.
Investments involve risk and unless otherwise stated are not guaranteed.
Dan Stewart CFA®
President/Chief Investment Officer
NorAm Asset Management
3 18 2014
After a solid week of selling, our equity markets were looking for any excuse to rally. And yesterday, our equity markets were relieved that we, the US and the EU, are just talking about sanctions and not any kind of military action regarding the Russian invasion of the Crimea. This will likely only embolden Putin to move into the Russian friendly eastern parts of Ukraine proper, which will further strain tensions between Russia and the West. But for now, the markets were pleased.
They responded with a strong positive price performance but there were a few problems with the internals. First, it was on very light volume. In fact, on both major exchanges volume declined by double digits. That tells me institutional investors were not participating in force, but rather it was participation by mom and pop retail investors.
Second, Up Volume was 72% on the NYSE and only 63% on the NASDAQ. Advancing issues were 72%, or about 3 to 1, on the NYSE and only 63%, or 2 to 1, on the NASDAQ. Lastly, the small and mid cap indices underperformed their larger counterparts.
This doesn’t exactly exude confidence for a sustained mover higher. The markets are at a critical juncture and we need volume to enter the markets with broader positive breadth.
If we do get further selling, there is support for the S&P 500 at 1840. On the NASDAQ, support is at 4240.
Now I want to update on 2 stocks that I own. Facebook (FB) was under pressure in morning trading but reversed higher to close up 1.5%. The stock still has strong relative strength so I am still confident, but overall market weakness could pull the stock lower.
The other stock is natural gas producer is EQT Corp (EQT). The stock has been moving sideways lately, but this is a good sign as the overall market sold off last week. The political situation should provide support for natural gas producers. Again, the overall market is the biggest risk.
Both of these stocks are extended and you shouldn’t chase either one. But if you did participate in either or both when I first wrote about these stocks breaking out, then you need to monitor your positions and stand ready to protect profits. I will be monitoring FB and EQT closely.
We have some important economic reports today including the Consumer Price Index (CPI) and Housing Starts. We have no companies reporting on either the S&P 500 or the DOW.
We have 33 stocks reporting in the broader markets. Some of the more notable companies are listed below.
Remember to tune into The Wall Street Shuffle Saturdays on 1190 AM at 10 a.m. in DFW. We have a financial and market focus.
I hope you enjoy the show. If you have any investment questions you would like discussed on the air, just e-mail me a danny@thewallstreetshuffle.com and we will address your questions.
If you have any specific investment questions in which you would like personal advice, e-mail me at dstewart@old.noramassetmanagement.com and I will be happy to respond.
Dan Stewart CFA®
NorAm Asset Management
Economic Reports Today:
Consumer Price Index (CPI)
CPI ex Food & Energy
CPI Core
Housing Starts
Building Permits
US Foreign Net Transactions
US Treasury Intl Net Capital Flows
Some Notable Earnings Reports Today:
Global Power & Equipment (GLPW)
Parkervision (PRKR – after market)
The information presented is for educational and entertainment purposes only. Opinions and information expressed are based upon information considered reliable. However, factors are constantly changing and should not be relied upon. You need to do and verify your own research.
Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.
Investments involve risk and unless otherwise stated are not guaranteed.
3 10 2014
Before I begin, I would like you to know that I am taking a week off of my newsletter to spend valuable time with my family over Spring Break. But rest assured, you are in good hands with Tim Reazor, our newest addition to The Wall Street Shuffle radio show, daily contributor to our newsletter, and Chief Investment Strategist for NorAm Asset Management. His article is below so be sure to read his valuable insight, but now to the markets.
I don’t know which is worse, the escalating Ukrainian situation with Russia, or the growth data out of China. China reported over the weekend that their growth has slowed the most since the financial crisis 5 years ago. Not only are Chinese stocks under pressure, but so is the Chinese Yuan.
And his will likely put pressure on our markets at the open. That said, our equity markets are still the strongest of the industrialized nations.
Friday, our markets gave up their morning gains. The DOW did manage to hold onto nominal gains, the S&P closed flat, while the NASDAQ closed in the red by -1/3%.
Up Volume was 44% on both the NYSE and the NASDAQ. Advancing issues were 43% and 46% respectively.
The most concerning thing though happened literally just before the close. A twitter feed from the Ukraine and the BBC reported that Russian armored vehicles and troops were entering the Crimea.
With less than 5 minutes before the close, being almost fully invested I decided to lighten up on my 2 most aggressive positions just in case the conflict escalated over the weekend. For this reason, I sold the ProShares Ultra S&P 500 (SSO) and the ProShares Ultra NASDAQ (QLD) to protect profits.
Both of those tactical positions move 2x of their respective index and are thus quite volatile. I purchased these positions in early February after the January pullback and had nice single digit gains in both. I did not want to give those gains up in short order. If the dust settles, I can always re-enter those positions or something similar.
We have no economic reports today. We have 1 company, Urban Outfitters (URBN) reporting on the S&P 500.
We have 19 stocks reporting in the broader markets. Some of the more notable companies are listed below.
Remember to tune into The Wall Street Shuffle Saturdays on 1190 AM at 10 a.m. in DFW. We have a financial and market focus.
I hope you enjoy the show. If you have any investment questions you would like discussed on the air, just e-mail me a danny@thewallstreetshuffle.com and we will address your questions.
If you have any specific investment questions in which you would like personal advice, e-mail me at dstewart@old.noramassetmanagement.com and I will be happy to respond.
Dan Stewart CFA®
NorAm Asset Management
Economic Reports Today:
None
Some Notable Earnings Reports Today:
Urban Outfitters (URBN)
USA Mobility (USMO)
FuelCell Energy (FCEL – after market)
United Natural Foods (UNFI – after market)
The information presented is for educational and entertainment purposes only. Opinions and information expressed are based upon information considered reliable. However, factors are constantly changing and should not be relied upon. You need to do and verify your own research.
Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your
3 7 2014
All of the indices were in the green yesterday morning while gold and oil were in the red. But then, just after midday, that all changed.
The markets weakened quickly giving up much of their gains, and gold and oil had a strong reversal to the upside. It seems that the Ukraine is unfortunately at the forefront.
The Crimea announced earlier in the day they would like to secede from the Ukraine and likely become part of Russia. The US and the EU started the rhetoric about Russian sanctions. And Russia isn’t backing down despite reports earlier in the week.
The DOW and S&P 500 managed to close in the green, but closed at the bottom of the day’s trading range (see S&P 500 1 Day Graph). The NASDAQ and Russell 2000 Small Cap indices both finished in the red.
Just the opposite happened with gold and oil at the same time (see Gold 1 Day Graph). Both began the day firmly in the red but finished firmly in the green.
The above mentioned reversals are telling me the markets are worried over the situation escalating. But there was no wholesale selling, just concern.
Up Volume was 64% on the NYSE but only 46% on the NASDAQ. Advancing issues were 56% and 52% respectively.
The markets still want to go higher and the midterm trend is still strong. The short term spoiler though is the situation mentions above.
The other driver of the markets today is the numerous jobs data being reported. We have the various payroll data as well as the Unemployment rate.
We have no companies reporting on the S&P 500. We have 20 stocks reporting in the broader markets. Some of the more notable companies are listed below.
Remember to tune into The Wall Street Shuffle Saturdays on 1190 AM at 10 a.m. in DFW. Tim Reazor will be joining me as my new co-host.
I hope you enjoy the show. If you have any investment questions you would like discussed on the air, just e-mail me a danny@thewallstreetshuffle.com and we will address your questions.
If you have any specific investment questions in which you would like personal advice, e-mail me at dstewart@old.noramassetmanagement.com and I will be happy to respond.
Dan Stewart CFA®
NorAm Asset Management
Economic Reports Today:
Trade Balance
Change in Nonfarm Payrolls
Two-Month Payroll Net Revisions
Change in Private Payrolls
Change in Manufacturing Payrolls
Unemployment Rate
Average Hourly Earnings
Average Weekly Hours All Employees
Underemployment Rate
Labor Force Participation Rate
Consumer Credit
Some Notable Earnings Reports Today:
Foot Locker (FL – before market)
Big Lots (BIG)
The information presented is for educational and entertainment purposes only. Opinions and information expressed are based upon information considered reliable. However, factors are constantly changing and should not be relied upon. You need to do and verify your own research.
Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.
Investments involve risk and unless otherwise stated are not guaranteed.
Dan Stewart CFA®
President/Chief Investment Officer
NorAm Asset Management
3 6 2014
It was a tepid day yesterday with the markets finishing moderately mixed. The S&P 500 was flat, the DOW was down -36 points while the NASDAQ was up 6.
The internals were also mixed. Total volume was down across the board with Up Volume 55% on both the NYSE and NASDAQ. Declining issues were 51% on both major exchanges. So selling was by no means intense, but neither was buying.
All in all it was a slow day as the markets were digesting the big gains from Tuesday. Investors are still concerned about the Ukrainian situation with Russia.
As much as I hate to say it, this situation will likely be the driver of the broader equity markets over the next few days. Good news, and the markets will rally, bad news will have the opposite effect.
Although we do have lots of economic reports around jobs and quite a few companies reporting earnings. Many of the bigger companies report before the open which could set the tempo.
Leading stocks were also mixed. Canadian Solar (CSIQ) gave a profit warning blaming the cold weather and the stock was down over -10%. Facebook (FB), however, was up 4%. In full disclosure, I own this stock.
Another stock I own is EQT Corp (EQT) was down -1.5% during normal hours, but up 1.6% in after-hours trading on unusually high volume. I expect this stock to breakout at the open.
The markets do, however, want to go higher. But if we do get a pullback, we should have support at the Monday’s lows. This would be around 16,070 on the DOW, 1835 on the S&P 500, and 4230 on the NASDAQ. I have attached an S&P 500 graph so you can visualize the support at 1835 from Monday’s low.
We have numerous economic reports today, especially around the jobs data. We have 5 companies reporting on the S&P 500, 4 of which are before the open.
We have over 65 stocks reporting in the broader markets. Some of the more notable companies are listed below.
Remember to tune into The Wall Street Shuffle Saturdays on 1190 AM at 10 a.m. in DFW. We have a financial and market focus.
I hope you enjoy the show. If you have any investment questions you would like discussed on the air, just e-mail me a danny@thewallstreetshuffle.com and we will address your questions.
If you have any specific investment questions in which you would like personal advice, e-mail me at dstewart@old.noramassetmanagement.com and I will be happy to respond.
Dan Stewart CFA®
NorAm Asset Management
Economic Reports Today:
RBC Consumer Outlook
Challenger Job Cuts YoY
BLS Revisions to Productivity & Cost
Nonfarm Productivity
Unit Labor Costs
Initial Jobless Claims
Factory Orders
Household Change in Net Worth
Some Notable Earnings Reports Today:
Joy Global (JOY – before market)
Costco (COST – before market)
Staples (SPLS – before market)
Kroger (KR – before market)
H&R Block (HRB – after market)
Ciena (CIEN – after market)
Ambarella (AMBA – after market)
Finisar (FNSR – after market)
Global Eagle Entertainment (ENT – after market)
The information presented is for educational and entertainment purposes only. Opinions and information expressed are based upon information considered reliable. However, factors are constantly changing and should not be relied upon. You need to do and verify your own research.
Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.
Investments involve risk and unless otherwise stated are not guaranteed.
Dan Stewart CFA®
President/Chief Investment Officer
NorAm Asset Management
3 5 2014
The markets had a big day yesterday with the S&P 500 hitting new highs on news that Russia pulled back troops from the Ukrainian border and Russian President Vladimir Putin said he wasn’t interested in the Ukraine. All of the indices loved the news rallied hard while precious metals and the Yen weakened.
The DOW was up 228 points or 1.4%. All of the other indices turned in an even better performance. The S&P 500 and the NASDAQ were up 1.5% and 1.75% respectively. And the Russell 2000 Small Cap index was up 2.75%.
Total volume was higher on both major exchanges. Up Volume was 88% on the NYSE and 7% on the NASDAQ. Advancing issues were 82% on both exchanges. I have said for over a week now that the markets want to go higher.
The biggest problem is that this Russian Ukrainian crisis in not over: not by a long shot. While Putin, while he said he wasn’t interested in the Ukraine, he went on to say that the use of military force wasn’t out of the question. Right at the closing bell yesterday Russia ‘tested’ an intercontinental ballistic missile (ICBM). Think this just might be a warning. You can read the report from the BBC in the Trending Section for yourself, or simply Google “Russia,” “ICBM,” “missile testing” etc..
So on the military force side, you have Putin. Then on the political side, you have Sergei Glazyev, a Kremlin aide.
Glazyev said if the United States imposed sanctions on Russia, Moscow might be forced to drop the dollar as a reserve currency and refuse to pay off U.S. bank loans. He went on to say “We would find a way not just to reduce our dependency on the United States to zero but to emerge from those sanctions with great benefits for ourselves.”
He further said Russia could stop using dollars for international transactions and “an attempt to announce sanctions would end in a crash for the financial system of the United States, which would cause the end of the domination of the United States in the global financial system.”
So I ask you but one question, does it sound like Russia is backing down? Because that is what exactly how it was reported and why the markets had such a big rally.
Now I am still bullish and long stocks, but cautiously so. I have a strategy to lighten my exposure if necessary. You should also have a plan in place so you are not making decisions under fire (pardon the pun).
We have a some economic reports today including MBA Mortgage Applications and the ADP Employment Change. We have 2 companies reporting on the S&P 500 including .
We have 42 stocks reporting in the broader markets. Some of the more notable companies are listed below.
Remember to tune into The Wall Street Shuffle Saturdays on 1190 AM at 10 a.m. in DFW. We have a financial and market focus.
I hope you enjoy the show. If you have any investment questions you would like discussed on the air, just e-mail me a danny@thewallstreetshuffle.com and we will address your questions.
If you have any specific investment questions in which you would like personal advice, e-mail me at dstewart@old.noramassetmanagement.com and I will be happy to respond.
Dan Stewart CFA®
NorAm Asset Management
Economic Reports Today:
MBA Mortgage Applications
ADP Employment Change
ADP National Employment Revisions
ISM Non-Manufacturing Composite
FED Release of the Beige Book
Some Notable Earnings Reports Today:
PetSmart (PETM – before market)
Brown-Foreman (BF/B)
Hovanian (HOV)
Revlon (REV)
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