Dan Stewart CFA®
President/Chief Investment Officer
NorAm Asset Management
3 4 2014
International concerns trumped our better than expected economic data yesterday with the Ukraine front and center. But the EU and Chinese manufacturing data also came in weak showing a slowdown on both continents. Also, as a whole, interest rates globally are on the rise.
This put a damper on investors’ moods with the DOW closed down -153 points, or almost -1%. Both the S&P 500 and the NASDAQ were down slightly less than -3/4%.
But the internals were stronger than the media would have you believe. Down Volume was 75% on the NYSE and only 59% on the NASDAQ. Declining issues were 65%, or less than 2 to 1, on both major exchanges.
The markets recovered significantly off their lows of the day. At one point the DOW was down over -220 points. The Russell 2000 Small Cap index was down just over -1/2%. So selling wasn’t intense as you might think.
Does this mean this pullback is over. No one really knows for sure, but we certainly didn’t get wholesale selling across the board.
Be patient and let the markets determine which direction they intend to go before taking a definitive stand. Thus far though, the markets are still healthy with many leading stocks holding up well and still acting right.
The two strongest sectors yesterday were gold and oil, both up over 2%. One is a substitute currency and the other is utility. These 2 asset classes were definitely helped by the conflict in the Ukraine. And with the current attacks and proposed regulation of “Virtual Currencies” like Bitcoin, this will also support the price of gold.
We have just 2 economic reports today with the most important being the ISM New York Purchasing Managers Index. We have 1 company, AutoZone (AZO) reporting on the S&P 500.
We have over 37 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.
Economic Reports Today:
ISM New York Purchasing Manager Index
IBD/TIPP Economic Optimism
Some Notable Earnings Reports Today:
AutoZone (AZO – before market)
Insys Therapeutics (INSY – before market)
RadioShack (FW) (RSH – before market)
Tech Data (TECD)
ClubCorp (Dallas) (MYCC)
Smith & Wesson (SWHC – 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 3 2014
Before I begin my newsletter, I want to make you aware of our new addition to the Wall Street Shuffle team, Tim Reazor. Tim has just joined the Wall Street Shuffle team as well as NorAm Asset Management as Chief Investment Strategist.
He will be a regular contributor to the Wall Street Shuffle Newsletter, so be sure to read Tim’s article. I hope you enjoy his insights.
The markets were poised for another strong up day. That is until Russia moved troops into the Crimea, or northern part of the Ukraine which is Russian friendly.
As soon as the it became apparent the Russians were serious and moving troops inside the Crimea, the markets reversed going into the red with about an hour left in trading. The good news is that the markets had a mini reversal just before the close.
The DOW, S&P 500 and Mid Cap closed with gains, but the NASDAQ and Russell 2000 Small Cap both closed in the red. Up Volume was 58% on the NYSE and 42% on the NASDAQ. Advancing issues were 59% and 46% respectively.
Over the weekend the Ukrainian situation has gotten worse. Russia has completely taken over Crimea. Many Ukrainian soldiers, including their Chief Naval Officer have defected and sworn allegiance to an independent Crimea which would, in reality, be a Russian satellite state.
NATO, however, announced Sunday night they would back the Ukraine, even militarily if necessary. This is affecting our US markets as well as markets globally.
Most of the Asian markets are in the red, especially Japan. At 10:00 p.m. CT, the Japanese markets are down almost 2% due to a Yen strengthening.
Our US equity futures are firmly in the red. The DOW futures are down -117 points while the S&P futures are down -16 points and the NASDAQ futures are down -31 points.
Gold is up over $17/ounce as the flight to safety is on. Today will likely be a “risk off” day. I would hold off on new buying until we get more clarity as to how bad the Ukrainian situation will actually get. You may want to be prepared to raise cash or hedge.
We have numerous economic reports today including Personal Income, Vehicle Sales, and Construction Spending. We have no companies reporting on the S&P 500.
We do have 34 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:
Personal Income
Personal Spending
PCE Deflator
PCE Core
Markit US PMI Final
ISM Manufacturing
ISM Price Paid
Construction Spending
Vehicle Sales
Some Notable Earnings Reports Today:
Nu Skin (NUS – before market)
Stratasys (SSYS)
MBIA Inc (MBIA – after market)
McDermott International (MDR – after market)
Guidewire Software (GWRE – after market)
Ambac Financial (AMBC – 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.
2 28 2014
Despite fears of an escalation of conflict in the Ukraine, the markets resumed their uptrend yesterday. A better than expected Durable Goods Orders and comments by the new FED Chairwomen Janet Yellen before Congress seemed to sooth the markets and bolster an appetite for risk.
Total volume was slightly lighter than Wednesday but healthy nonetheless, and many leading stocks performed well. Up Volume was 72% on the NYSE and 70% on the NASDAQ. Advancing issues were 65% and 65% on both major exchanges.
The advance/decline lines on the S&P 500 and even the mid and small cap indices hit new highs again. So even though most technical oscillating indicators are flashing overbought, the ability for this market to rally simply demonstrates its strength.
I stated in yesterday’s newsletter that the markets want to go higher. I have also stated in recent newsletters that 1850 would be an important level to break through on the S&P 500. Yesterday, we did just that with the S&P 500 closing at 1854, closing at the new high.
If we can hold above the 1850, which was the recent upper ceiling of the recent trading range over the past few months, then it will go from resistance to support. If we don’t get a complete breakdown in the Ukraine, the markets should go higher.
I have said it many times over the past week, but it is worth repeating – the Ukrainian situation is the biggest risk currently to our markets. It could get ugly fast.
Russia is stepping up the rhetoric and flexing its military might, scrambling jets and amassing troops at the border. The EU and US are not backing down. So thus far, no one is blinking and this is a dangerous game of chicken.
Remember to tune into The Wall Street Shuffle Saturdays on 1190 AM at 10 a.m. in DFW or iHeart radio. Tomorrow’s guest will be Tim Reazor from Investor’s Business Daily (IBD). But I have even a bigger surprise so be sure and tune in, you will NOT want to miss this announcement.
We have numerous economic reports today including GDP and Pending Home Sales. We have 3 companies reporting on the S&P 500 all before the open.
We have over 49 stocks reporting in the broader markets. Some of the more notable companies are listed below.
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:
GDP Annualized QoQ
GDP Price Index
Personal Consumption
Core PCE QoQ
Chicago Purchasing Managers Index
University of Michigan Consumer Confidence
Pending Home Sales
Revisions to Pending Homes Data
Some Notable Earnings Reports Today:
Iron Mountain (IRM – before market)
NRG Energy (NRG – before market)
Pepco Holdings (POM – before market)
Endo Health Solutions (ENDP – before market)
3D Systems (DDD)
NRG Yield (NYLD)
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.
2 27 2014
The markets again started out in the green only to have the rally fizzle by the close. Both the DOW and the NASDAQ finished mildly in the green, while the S&P 500 was perfectly flat.
The good news is that both the small and midcaps outperformed their larger brethren with gains of .66% and .49% respectively. The internals were a little stronger than the price action.
Up Volume was 55% on the NYSE and 54% on the NASDAQ. Advancing issues were 61% on both exchanges. So the volume was skewed toward buying and market breadth was positive.
Essentially, there was just a whole lot of churning going on without any discernible direction. Buying was muted, but so was selling. We are still at the upper end of our recent trading ranges of the late December and mid January highs.
But the markets want to move higher. The wildcard remains the Ukrainian situation. Russian President Vladimir Putin has just ordered a “test” of combat readiness for troops stationed on Ukraine’s border.
I did make a purchase today in a company which has accelerating earnings and growth in the stock accounts. That company is Chipotle Mexican Grill (CMG), known for their Mexican food. They are expanding, however, into Asian cuisine as well. Incidentally, I love their food and they are going all organic.
CMG’s last reported earnings rose 30% and their revenues are up by 20%. It is a well managed company with lots of growth potential.
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. This Saturday I will have a major announcement you will not want to miss.
We have numerous economic reports today including Durable Goods Orders and Initial Jobless Claims. We have 12 companies reporting on the S&P 500 including some retailers.
We have over 160 stocks reporting in the broader markets, including many leading stocks. Some of the more notable companies are listed below.
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:
Durable Goods Orders
Capital Goods Orders Nondefense ex Air
Capital Goods Shipped Nondefense ex Air
Initial Jobless Claims
Kansas City FED Manufacturing Activity
Some Notable Earnings Reports Today:
Best Buy (BBY)
Ross Stores (ROST)
The Gap (GPS)
Kohl’s (KSS)
Windstream (WIN)
Saleforce.com (CRM – after market)
Monster Beverage (MNST – after market)
Ocwen Financial (OCN – before market)
TRI Pointe Homes (TPH – before market)
Nationstar Mortgage (NSM – before market)
Valeant Pharmaceuticals (VRX – before market)
Sotheby’s (BID)
Wendy’s (WEN)
Frontline (FRO)
Breitburn Energy Partners (BBEP)
Chico’s FAS (CHS)
Kodiak Oil & Gas (KOG – after market)
ACADIA Pharmaceutical (ACAD – after market)
Chuy’s (CHUY – after market)
Sprouts Farmers Market (SFM – after market)
Air Lease (AL – after market)
Splunk (SPLK – 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.
2 26 2014
Economic reports came in mixed yesterday. Most of the housing reports coming in solid, but consumer confidence was weaker than expected. The real loser, though, was the Richmond FED Manufacturing Index. It got squashed. The prior reading was 12 with expectations of 5, but the number was -6 so a big manufacturing reversal in the mid-Atlantic region.
Stocks took the reports in stride and rallied in morning trading. However, as a whole, they were unable to hold onto their gains taking a breather with a mild decline. All of the Big 3 indices were down less than .2%. Small caps were down even less than that, virtually flat at -.05% which is a good sign.
Up Volume was 43% on the NYSE and 51% on the NASDAQ. Advancing issues were 48% on the NYSE but only 40% on the NASDAQ. So the stronger Up Volume was due to heavy volume on leading stocks.
One of the top performing sectors, the solar sector, got a black eye after-hours. First Solar (FSLR) disappointed and was down over -13% in after-hours trading. This will put downward pressure on the solar stocks today.
And a few of the biotechs, another leading sector, came under pressure as well. Jazz Pharmaceuticals (JAZZ) was down -6% after-hours, while QuestCor Pharmaceuticals (QCOR) was down -5.3%.
The major indices are up against overhead supply at the top of their trading highs of late December and mid January. We need renewed buying on strong volume to break through these recent trading ranges.
For example, the S&P 500 is just below resistance at 1850 at the upper end of its recent trading. It will need to break through and hold above its recent highs of 1850 for a sustainable move higher (see S&P 500 6 Mo Graph).
For now probabilities suggest we will consolidate and may even experience a shallow pullback. The midterm demand for stocks, however, is strong with the uptrend intact.
Switching gears, gold was one of the few assets that rose yesterday. This is most likely due to the fact that Mt. Gox, the Tokyo Bitcoin exchange, went down completely.
Investors have lost hundreds of thousands of dollar if not more. Bitcoin itself was clobbered. Investors looking for a hedge against currency devaluation now have fewer choices. Gold will be one of those choices.
We have a few economic reports today, again surrounding the housing market. We have 13 companies reporting on the S&P 500.
We have over 85 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
New Home Sales
Some Notable Earnings Reports Today:
Dollar Tree (DLTR – before market)
Target (TGT – before market)
TJX Companies (TJX – before market)
Chesapeake Energy (CHK – before market)
Lowe’s (LOW – before market)
Transocean (RIG – after market)
Autodesk (ADSK – after market)
L Brands (LB – after market)
Integrys (TEG – after market)
Taser International (TASR)
Abercrombie & Fitch (ANF)
JC Penney (JCP)
Del Frisco’s (DFRG)
Workday (WDAY – after market)
Great Plains Energy (GXP – after market)
Continental Resources (CLR – 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.
2 25 2014
The only 2 economic reports out yesterday were both Regional FED Activity Indices, and both missed estimates, but no major slowdown. A few earnings reports came in solid.
But the big news was that the Ukraine didn’t completely meltdown. In fact, the Ukrainian stocks has the biggest performance of all the countries globally. Really?! Maybe just a bit early as the country is asking for a 35 billion bailout over the next 2 years to avoid default.
Now the EU, the IMF, and the US has said they would assist thru this transition period and have warned Russia against intervening. I am not sure that Russia will stay out of the fray. I still believe that is the biggest short term risk.
Getting to our markets, they continued their uptrend, but on solid total volume. Up Volume was 69% on the NYSE and 71% on the NASDAQ. Advancing issues were 61% and 64% respectively. So the internals were healthy.
The only troubling sign in the very short term is that the markets pulled back from their highs closing midrange. In fact, the S&P 500 hit an new high intraday only to rollback over.
It would be very normal for the markets to take a breather at this point. The midterm is still intact thus far. Focus on the strongest sectors and strongest stocks. Energy and healthcare were 2 of the best performing sectors yesterday.
On stock that I own, Facebook (FB) continues to show strength (see Facebook 9 Mo Graph). It closed up over 3% yesterday on strong volume. I will watch closely to see if institutional ownership continues to support the stock.
We have numerous economic reports today, mostly around housing. We have 9 companies reporting on the S&P 500, 1 or which, Home Depot (HD) , is also included on the DOW.
We have over 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:
House Price Index
S&P/CaseShiller 20 City Composite
S&P/CS Composite
S&P/CS Home Price Index
Consumer Confidence
Richmond FED Manufacturing Index
Some Notable Earnings Reports Today:
Home Depot (HD)
American Tower (AMT – before market)
Macy’s (M)
Range Resources (RRC – after market)
QEP Resources (QEP – after market)
Seadrill (SDRL)
Quicksilver Resources (KWK)
Toll Brothers (TOL – before market)
First Solar (FSLR – after market)
Jazz Pharmaceuticals (JAZZ – after market)
Questor Pharmaceuticals (QCOR – after market)
Sturm Ruger (RGR – after market)
Annaly Capital (NLY – 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.
2 24 2014
The markets were in the green for most of the day Friday only to give gave up those gains going into the close. All of the Big 3 Large Cap indices closed with modest losses.
The Small and Mid Cap indices, however, finished the day with modest gains. The ratio of Up to Down Volume on the NYSE was a virtual stalemate, while Down Volume won on the NASDAQ, registering 54%. Advancing issues were 57% on the NYSE and 51% on the NASDAQ.
There has been a lot of talk of an impending bear market, but thus far, most of the technical indicators are still strong. Only the Advance Decline lines on the small cap sector is beginning to lag and the price.
If this continues, and then the other indices and exchanges show the same phenomenon, that is when I would become truly worried from a technical standpoint. The equity markets closed out the week with gains, and thus far the uptrend remains intact.
By far the biggest risk to the markets is political, and is the Ukraine. Over the past few days, Russian “backed” President Viktor Yanukovych has been ousted by the Ukrainian Parliament and set up an interim President. The Parliament wants to establish closer ties to the EU.
Yanukovych has, however, said he would not relinquish power but has fled the Capitol city of Kiev for the Russian speaking. I don’t like speculating on politics, but now that the Olympics are formally over, I believe Putin will step up the rhetoric and possibly even flex Russian’s military muscle.
We are so concerned that National Security Advisor Susan Rice went on the Sunday morning political shows warning Russia not to make a move against the Ukraine. She went on to say the people of the Ukraine should work out their differences for themselves.
As an professional investor, I know the markets don’t like uncertainty, especially political uncertainty. So again, the single biggest risk in the short term to the markets is an escalation of tensions in the Ukraine, especially if the US and Russia get sucked in directly.
We have a couple of economic reports today, both regional FED business data including our own Dallas FED Manufacturing Index. We have 5 companies reporting on the S&P 500.
We have over 50 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:
Chicago FED National Activity Index
Dallas FED Manufacturing Index
Some Notable Earnings Reports Today:
Frontier Communications (FTR)
ONEOK (OKE)
Tenet Healthcare (THC)
EOG Resources (EOG – after market)
Vornado Realty (VNO – after market)
Dillard’s (DDS – before market)
Palo Alto Networks (PANW – before market)
Texas Roadhouse (TXRH – after market)
SolarCity (SCTY – 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.
2 21 2014
CPI and Initial Jobless Claims were in line with estimates and the Markit PMI was better than expected. But Mortgage Delinquencies were up 6.4% and the Philly FED Business Outlook was deplorable. The prior reading was 9 and estimates were for 8, but the number was -6.3. Among the various inputs to the Business Outlook, the most telling was the average work week fell. Anyway you look at it, that is a big reversal.
Despite the negative economic news, the markets continue their uptrend. Up Volume was 74% on the NYSE and 80% on the NASDAQ. Advancing issues were 65% and 71% respectively.
The NASDAQ was the strongest of the Big Three indices. Small caps led the way overall, up over 1%. This is in spite of the fact that our markets are technically overbought on a short term basis.
Also many leading stocks are continuing moving higher. Among them yesterday was Facebook (FB), Tesla (TSLA), and our Dallas based Trinity Industries (TRN). Companies reports have improved overall toward the end of earnings season (see S&P Earnings Analysis Graph).
The other sign of strength was the fact that the markets opened in the red following the Asian markets overnight, only to reverse higher closing near the highs of the day. This is after China and Japan were both crushed. Japan was down -2.5% while China was down -3%, after the Chinese data showed further weakness and Japanese deficits exploding.
The takeaway is that the US equity markets are the place to be at this time. Overseas simply carries too much risks and volatility.
The other area I would avoid is the US real estate sector. There are significant signs of erosion there too. And there are too many other areas showing much better relative strength.
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. One of our guest Saturday is also the other contributor to this newsletter today.
He is Mitch Zacks from Zacks Investment Management who you will not want to miss. He is the firm’s primary expert on quantitative investing and has personally developed many of the proprietary models they use in the management of their strategies.
Zacks has numerous highly ranked mutual funds, investment research. Mitch has written two books on quantitative investment strategies, Ahead Of The Market, which details the Zacks method for spotting stocks early in any economy, and The Little Book of Stock Market Profits: The Best Strategies of All Time Made Better, which was published in 2011 and was one of the top selling investment books at that time.
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.
We have 1 economic reports today, Existing Home Sales. We also have 4 companies reporting on the S&P 500, all of them reporting before the open.
Additionally, there over 22 stocks reporting in the broader markets. Some of the more notable companies are listed below.
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:
Existing Home Sales
Existing Home Sales Revisions
Some Notable Earnings Reports Today:
Pinnacle West (PNW – before market)
Ecolab (ECL – before market)
Graham Holdings (AEE – before market)
Ruth’s Hospitality (RUTH)
Cheniere Energy (LNG)
DISH Networks (DISH)
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.
2 20 2014
We received more negative economic data yesterday, which the markets seemed to take in stride in morning trading. Mortgage Applications fell -4.1% while Building Permits dropped by -5.4%. But the loser was Housing Starts, down -16% Month over Month (MoM)!
The indices were in the green for most of the day until the FED released its FOMC Meeting Minutes and revealed some FED officials were in favor of raising rates. Couple that with the already announced continuation of another 10 billion of tapering, and that was the clincher. Apparently seeing it in black & white makes it more real.
But don’t take my word for it, read the minutes for yourself. I have included it as the top article in the Trending Section of this newsletter.
After the FED’s statement release, markets rolled over going into the red on higher total volume. Small caps were the worst performing index followed by the NASDAQ and then mid caps.
We hit resistance at the highs of December 31st & January 15th, and reversed lower (see S&P 500 Graph). This gives an reason for technical traders, especially those using oscillating indicators, to sell when we hit the upper end of the range.
Up Volume was 33% on the NYSE with advancing issues 35%. Both Up Volume and advancing issues were both 29% on the NASDAQ confirming more weakness.
The good news is that many leading stocks fared well bucking the trend. Tesla (TSLA) beat estimates after-hours and the stock was up over 12.5% in extended trading. These are both positive signs.
There are some negatives brewing, however. Oil had another strong day over up over $1.00 closing at $103.44 on Ukrainian fears. There are talks of a truce, but if oil keeps climbing, it will take its toll on the equity markets.
Also, overnight, the Chinese PMI fell to a 7 month low coming in at 48.3, weaker than estimates of 49.5. Anything below 50 represents contraction. So the Chinese economy is contracting more than expected. The Asian markets, especially China and Japan, are down well over 1% in overnight trading. This will also put pressure on our markets.
Our midterm uptrend is still intact, and this looks more like just some short term pressure. But if selling accelerates, I will lighten up on my most aggressive positions.
We have a lot of economic reports to digest today including many earnings reports. Initial Jobless Claims and CPI will receive the most focus.
We have 18 companies reporting on the S&P 500, 1 of which, Wal-Mart (WMT), is also included on the DOW. WMT will set the tone as far as earnings.
We have over 120 stocks reporting in the broader markets, including many leading stocks. 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
Initial Jobless Claims
Markit Preliminary PMI
Philly FED Business Outlook
Mortgage Delinquencies
MBA Mortgage Foreclosures
Leading Index
Some Notable Earnings Reports Today:
Wal-Mart (WMT)
Denbury Resources (DNR – before market)
Actavis (ACT – before market)
Hormel Foods (HRL – before market)
Cabot Oil & Gas (COG – after market)
Intuit (INTU – after market)
Express Scripps (ESRX – after market)
Nordstrom (JWN – after market)|
Hewlett-Packard (HPQ – after market)
priceline.com (PCLN – after market)
InterDigital (IDCC – before market)
Ultra Petroleum (UPL – before market)
Nu Skin (NUS)
Newmont Mining (NEM – after market)
Pharmcyclics (PCYC – after market)
Aruba Networks (ARUN – after market)
Public Storage (PSA – 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.
2 19 2014
Despite the weak economic data, with the exception of the DOW, the markets trudged higher. The NAHB Housing Market Index actually went into contraction territory. This is why I have been saying be wary of the housing sector as the run is likely over. Housing stocks got hammered across the board.
Empire Manufacturing also came in much weaker than expected. And US Household Debt experienced its largest quarterly increase since before the Great Recession of 2008. The data doesn’t provide a positive outlook for the longer term.
Nevertheless, and again with the exception of the DOW, all of the major indices moved higher Tuesday in a complete role reversal from Friday. Remember Friday, Exxon (XOM) helped skew the DOW higher while the NASDAQ and the Russell 2000 Small Cap indices lagged.
Tuesday, the DOW closed moderately lower after Coca-Cola (KO) missed expectations and was down almost -4% on heavy volume. This, along with CISCO (CSCO), Verizon (VZ, and AT&T (T), which were also down on heavy volume helped skew the DOW lower.
The good news is that the strongest indices were the NASDAQ, mid and small caps. This means investors were willing to assume risks.
Total volume was healthy, and Up Volume was 53% on the NYSE and 73% on the NASDAQ. Advancing issues were 65% and 69% respectively.
The big news of the day though was oil and natural gas. I have been writing recently about the strife in certain countries, one of them being the Ukraine.
Yesterday, civil unrest in the capitol city of Kiev broke out with many deaths. The rioting continues and this has provided support for oil.
Even worse, Venezuela is coming apart at the seams. They have ‘detained’ the leader of the opposition party and ejected 3 U.S. diplomats from the country. Can you say scapegoat?
Venezuela is literally imploding quickly. US lawmakers are now calling for an oil embargo of Venezuelan oil although I am not sure the White House will go along. Either way, concerns over Syria and now especially Venezuela are also helping to support the price.
Natural gas is rallying due to the new storms about to blanket the country again. Both natural gas & oil have had a nice run, so I wouldn’t chase it here, and I would have conditional stop losses on my positions.
Regarding the equity markets, the US markets are still the place to be. I firmly believe the risks overseas just don’t justify the rewards.
We have some important economic release today. They include the new iterations of the Producers Price Index (PPI). This is the first time since 1978 since changes have been make. We also have Building Permits, Housing Starts, and Mortgage Applications.
We have 8 companies reporting on the S&P 500 including Devon Energy and Marriott Hotels. We also have over 90 stocks reporting in the broader markets including Tesla Motors (TSLA). Some of other 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
BLS Release New Producers Price Index (PPI)*
Iterations Below (first overhaul since 1978)
PPI Final Demand-Intermediate Demand*
PPI PPI Final Demand*
PPI Ex Food & Energy
Housing Starts
Building Permits
FED FOMC Minutes Release Jan 28th-29th Meeting
Some Notable Earnings Reports Today:
Devon Energy (DEV – before market)
Marriott International (MAR)
Williams Companies (WMB – after market)
Safeway (SWY – after market)
Hecla Mining (HL – before market)
MGM Resorts (MGM – before market)
Spirit Airlines (SAVE – before market)
Lumber Liquidators (LL)
Six Flags (SIX)
HomeAway (AWAY)
LifeLock (LOCK)
Avis Budget Group (CAR – after market)
Concho Resources (CXO – after market)
Tesla Motors (TSLA – 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.
