Markets Drop On Economic Reports, G-20 Meeting, Greece (GLD, USO, MF, SPY, QQQ)
by ilene - November 4th, 2011 5:13 pm
Courtesy of John Nyaradi.
Markets dropped slightly lower today on G-20 news, mixed economic reports, and Grecian woes.
After the confusing market action on Wall Street this week, it seems that markets cannot make up their minds after last week’s euphoric rally and Euro-zone compromise. It appeared that markets were on a meteoric rise that could have possibly carried us into Christmas, however Prime Minister Papandreou’s referendum call for Greece and MF Global’s bankruptcy soured the mood.
The SPDR Gold Trust (NYSEArca:GLD) dropped half a percent today; the fall likely represents the current troubles of MF Global Holdings (NYSEArca:MF), which filed for bankruptcy earlier this week. MF Global has major holdings in commodities, including gold. Despite the MF Global mess, however, the United States Oil Fund LP ETF (NYSEARCA:USO) registered a .4% increase.
Members of the G-20 did not come up with a compromise to help the Euro Zone’s new plan, I would imagine that Prime Minister Papandreou’s referendum call and vote of no confidence did not help the discussion along. It seems that policay makers across the world are stuck between doing the impossible and some very difficult choices.
And lastly, economic reports were mixed, at best, as unemployment dropped from 9.1% to 9% for October, and non-farm payrolls dropped from 158,000 in September to 80,000 in October. If one tenth of a percent less unemployment means improvement, then today’s reports were a mixed bag at best, and the light at the end of the tunnel might be flickering.
Bottom Line: It seems that the markets today and this week do not know how to respond to continued European woes and MF Global, and that the so-called “Santa Rally” that everyone wants to ride into the end of the year might have to wait a little longer.
Global Stock Market Summary:
S&P 500 SPDR (NYSEARCA:SPY): -0.77, -.061%
PowerShares QQQ Trust (NASDAQ:QQQ)
SPDR DJ Industrial Average ETF (NYSEARCA:DIA): -.59, -.49%
Russel 2000 iShares (NYSEARCA:IWM): -0.37, -0.49%
SPDR Gold Trust (NYSEARCA:GLD) -0.87, -0.51%
United States Oil Fund LP (NYSEARCA:USO): +0.14, +0.39%
Have a great weekend!
Wall Street Sector Selector trades a wide variety of ETFs and positions can change at any time.
Click here to learn more about John’s book and for a free membership to Wall Street Sector Selector
Facebook
Twitter
LinkedIn 
del.icio.us
DiggConfusion Roils World Markets (EWI, EFA, QQQ, USO, GLD)
by ilene - November 3rd, 2011 5:47 pm
Courtesy of John Nyaradi.
Confusion out of Europe (NYSEARCA:EFA) regarding Greece and a surprise interest rate cut roil world markets.
Today the Greeke referendum was “off the table” and U.S. markets rallied in response with the tech sector (NYSEARCA:QQQ) gaining +2.4% and energy (NYSEARCA:USO) climbing +1.8%.
New European Central Bank President Draghi started off with a bang by lowering interest rates for the first time in two years but the bond market didn’t share in the celebration as Italian 10 year bonds (NYSEARCA:EWI) hit a Euro era high of 6.4% and Greek 10 years hit 31%.
But gold (NYSEARCA:GLD) liked the news and registered a 1.6% gain to a six year high and the G20 continued their dramatic meeting in Cannes.
The economy showed modest signs of improvement with weekly unemployment dropping below 400,000 and a rise in factory orders.
Tomorrow brings the all important Non Farm Payrolls and Unemployment reports.
Bottom line: From both a technical and fundamental perspective, the U.S. stock market wants to go up but Greece and Europe, particularly Italy’s $1.9 Trillion in debt remain significant potential potholes.
Go here for a Special Offer from Wall Street Sector Selector
Disclaimer: Wall Street Sector Selector actively trades a wide range of exchange traded funds (ETFs) and positions can change at any time.
Click here to learn more about John’s book and for a free membership to Wall Street Sector Selector
Jobs, Factory Orders Improve (DIA, SPY, IAU, GLD, USO)
by ilene - November 3rd, 2011 2:05 pm
Courtesy of John Nyaradi.
Weekly jobless claims decline and factory orders improve
Economic reports today pointed towards a slowly improving economy as the weekly jobless claims dipped below the all important 400,000 level.
October ISM report came in virtually flat at 52.9 compared to last months 53.0 while factory orders rose +0.3 compared to last month’s +0.1.
Gold (NYSEArca:GLD) (NYSE:IAU) rose +2.1% while oil (NYSE:USO) advanced 2% on hopes for better days ahead
The Dow Jones Industrials (NYSEA:DIA) and (NYSEA:SPY) rose on news that the referendum in Greece now won’t happen as their soap opera continues.
Bottom line: Fundamentals point to improving conditions and technical indicators support higher prices but Greece is the wild card that needs to be resolved before a sustained uptrend can take hold.
Go here for a Special Offer from Wall Street Sector Selector
Disclaimer: Wall Street Sector Selector actively trades a wide range of exchange traded funds (ETFs) and positions can change at any time.
Click here to learn more about John’s book and for a free membership to Wall Street Sector Selector
Stock Market Rebounds on Fed, Jobs (IYF, GLD, IYE, IYM, FXE)
by ilene - November 2nd, 2011 7:18 pm
Courtesy of John Nyaradi.
U.S. stock market rebounds on comforting words from the Federal Reserve and a better than expected jobs report.
The big news of the day was the Federal Reserve and Dr. Bernanke’s press conference which supported the idea that more stimulus would likely be forthcoming as the economy struggles to grow. Particular emphasis was placed on the real estate sector and the possibility of more Fed purchases of mortgage bonds which sent the financial sector (NYSEArca:IYF) to an impressive gain of 2.7%. Downside risk remains high and the Fed also cut its GDP growth forecasts, further greasing the rails for more easing ahead.
Getting some help from the ADP private employment report which indicated 110,000 private new jobs in October versus the expected 100,000, the materials sector (NYSEArca:IYM) vaulted +2.6% on the day while energy joined the party (NYSEArca:IYE) with a 2.8% gain on hopes for increased demand if a more severe economic slowdown can be averted.
With the prospects of further easing growing stronger, gold (NYSEArca:GLD) rose 1% while the U.S. Dollar declined a fraction.
Meanwhile, the news from Europe becomes more tense by the moment as the Greek referendum on the current bailout proposal will be held in early December, either the 4th or 5th, according to this afternoon’s announcement. Euro Zone leaders say there will be no further payments to Greece until the referendum passes and so it seems that if the referendum fails, Greece will head for a hard default which will likely have enormous consequences for not only Greece but European banks, the European zone economy and the U.S. economy and stock market, as well.
George Papandreou has taken an enormous all or nothing bet here and literally put the future of the Euro (NYSEArca:FXE) on the line with this unexpected and, some would say, reckless move.
But, for today, all was well as the Dow gained 1.5%, the S&P 500 added 1.6% and the Russell 2000 jumped 2.7%
Tomorrow brings the weekly employment reports, October ISM and September Factory Orders with more clues about the health of the economy.
Bottom line: An enormous struggle is underway between the central bankers and political leaders of the world and a slow global economy and seemingly unsustainable debt. The struggle has been magnified and made more dangerous by recent developments in Greece. If Greece goes, no one knows for sure
…
Financial Roller Coaster Continues (FXE, EFA, IVV, MA, XLF)
by ilene - November 2nd, 2011 8:54 am
Courtesy of John Nyaradi.
Global financial roller coaster ride continues!
After a wild day yesterday, global investors face another day on the roller coaster of today’s stock market with news on employment, Greece and the Federal Reserve.
In Europe, (NYSEArca:EFA) leaders scramble to save the Greek bailout package after George Papandreou riled the world with his call for a vote of no confidence in his government and a referendum on the austerity measures designed to save the Euro Zone and the Euro Dollar (NYSEArca:FXE) He says he will get his vote of confidence and the referendum will pass as he heads for Cannes for an emergency summit with Chancellor Merkel and French President Sarkozy. The Euro (NYSEArca:FXE) seemed to feel better about things today as it rose in early trade.
At home, the all important financial sector (NYSEArca:XLF) got a boost from Master Card (NYSE:MA) reporting strong results with earnings up 38% as the consumer continued to show resilience in the face of ongoing scary news.
The widely watched October ADP report showed the private sector added 110,000 jobs for October versus 91,000 the previous month and this good news was supported by the Challenger planned job cuts dropping 63% for October. These two reports lay the groundwork for the monthly payroll and unemployment report due on Friday.
Finally, today Ben Bernanke and the FOMC make their statement and Dr. Bernanke holds a press conference and speculation is growing in favor of another round of asset purchases focused on mortgages to stimulate the injured housing industry.
Bottom line: The economy continues to show signs of improvement, however, Europe and Greece are the wild cards that will determine where we go from here. For today, the financial roller coaster will likely continue.
Go here for a Special Offer from Wall Street Sector Selector
Disclaimer: Wall Street Sector Selector actively trades a wide range of exchange traded funds (ETFs) and positions can change at any time.
Click here to learn more about John’s book and for a free membership to Wall Street Sector Selector
Euro ETFs Suffer From Greece (EWI, EFA, FXE)
by ilene - November 1st, 2011 5:22 pm
Courtesy of John Nyaradi.
European ETFs such as (AMEX:EWI), (AMEX:EFA), and (AMEX:FXE) all suffered today on news that Greece plans to hold a referendum vote in order to pass Euro austerity measures.
I do wonder what on earth Greek Prime Minister Papandreou is thinking, and aparantly his government is wondering the same thing, as Papandreou faces a vote of no confidence this Friday.
Either way, it appears we are back to square one before last week’s massive rally and Euro-compromise, as markets have returned to previous support levels as predicted last week.
The pain starts with the iShares MSCI EAFE Index Fund (AMEX:EFA), which tracks stocks within the Euro-zone and far-east. (AMEX:EFA) lost a whopping 3.13% today in response to Papandreou’s speech; it appears that investors are not happy and do not want to keep drinking the sugar water served last week.
The pain continued with the iShares MSCI Italy Index (AMEX:EWI), as the ETF crashed 6.96% today. If investors don’t like Greece, they certainly do not like Italy, which could be next on the chopping block, and this serves as a painful reminder that the Euro crisis is far from being over as Italy mammoth-like compared to Greece.
And lastly, the CurrencyShares Euro Trust (AMEX:FXE) did not fare will either as the ETF took a 1.04% drop while investors lost faith in the Euro dollar.
Markets at home did not respond well either, as the SPDR S&P 500 ETF (AMEX:SPY) fell hard and lost 2.79%, and SPDR Dow Jones Industrial Average ETF (AMEX:DIA) followed with a 2.48% drop.
All in all, it appears that we are back to square one with Greece, and I am curious how Chancellor Merkel and President Sarkozy will respond in the coming days and weeks.
In other mundane news, tomorrow brings the FOMC statement on interest rates and Chairman Bernanke’s press conference, alongside the ADP private sector employment report.
Speaking about economic recovery, American auto sales have increased for October, however this morning’s ISM report also contributed to today’s panic. Meanwhile, MF Global Holdings (NYSE:MF) continues to make the news with new reports of the Bank using investors’ money to stay afloat. Read more about MF Global.
Bottom Line: Greece is a wildcard, and (AMEX:EWI), (AMEX:EFA), and (AMEX:FXE) all…
Auto Sales Post October Gains (F, GM, SPY, XLY)
by ilene - November 1st, 2011 2:02 pm
Courtesy of John Nyaradi.
U.S. auto sales post strong gains in October
Both foreign and domestic auto manufacturers reported strong sales gains for October in the important Consumer Discretionary Sector (AMEX:XLY)
Strong results were posted by S&P 500 (AMEX:SPY) component Ford (NYSE:F) with sales up 6%, Chrysler rising +27%, and General Motors (NYSE:GM) gaining a 2% improvement. Double digit results were reported by Mercedes, Volkswagen and KIA.
Forward looking estimates point towards continued improvement in the sector.
Bottom line: The American consumer, (AMEX:XLY) all important contributor to 70% of GDP, continues to show remarkable resilience in the face of high unemployment and scary headlines.
Go here for a Special Offer from Wall Street Sector Selector
Disclaimer: Wall Street Sector Selector actively trades a wide range of exchange traded funds (ETFs) and positions can change at any time.
Click here to learn more about John’s book and for a free membership to Wall Street Sector Selector
ISM, Greece Panic Markets (UUP, XLE, GLD, DIA, SPY)
by ilene - November 1st, 2011 10:58 am
Courtesy of John Nyaradi.
A surprise decision by Greece and slowing ISM report panic global markets.
Major stock indexes (AMEX:SPY) declined today as Greek shocked the world by announcing a referendum on its austerity program which threw last week’s European agreement on the country’s debt into total disarray.
Markets reacted poorly with the yield on Greece’s 2 year note climbing north of 80% and the panic in the streets spread as Italy’s 10 Year Note climbed to a whopping 6.3%.
At home, the ISM report declined to 50.8 for October, missing expectations and indicating weakness in the all important manufacturing sector (AMEX:DIA)
The U.S. Dollar (AMEX:UUP) gained in a flight to safety while the energy sector declined (AMEX:XLE) more than 7% on fears of a global slowdown in economic activity and energy demand.
Gold (AMEX:GLD) tumbled in response to the news and the Federal Reserve starts its widely watched two day meeting as market watchers wonder what the Fed’s next move might be.
Bottom line: We have been saying for weeks that Greece and Europe are the wild cards in today’s environment. A settlement of this uncertainty will likely lead to a year end rally while ongoing chaos can only bode ill for global equities markets.
Go here for a Special Offer from Wall Street Sector Selector
Disclaimer: Wall Street Sector Selector actively trades a wide range of exchange traded funds (ETFs) and positions can change at any time.
Click here to learn more about John’s book and for a free membership to Wall Street Sector Selector
Markets Spook On Halloween (SPY, DIA, QQQ, IWM, MF)
by ilene - October 31st, 2011 10:53 pm
Courtesy of John Nyaradi.
Markets spooked out today on Halloween as the SPDR S&P 500 ETF (AMEX:SPY), SPDR Dow Jones Industrial Average (AMEX:DIA), PowerShares QQQ Trust (NASDAQ:QQQ), and the iShares Russell 2000 Index (AMEX:IWM) all took a nose dive to end a crazy month.
The nose dive was mostly a correction related to last weeks Europe debacle; moving forward this week, it is unclear whether the rally will continue until the end of the year, or if it was just a short sigh of relief before things could get really ugly.
One thing is for certain: MF Global Holding’s (NYSE:MF) file for Chapter 11 bankruptcy is not a positive sign by any means. The bank failed for several reasons, including its purchase of European sovereign debt. I wonder how European banks are feeling today as well for purchasing European sovereign debt, it certainly wasn’t a sugar high from too much Halloween candy. Spain and Italy are likely next, proceed with caution.
Read more about how Gold ETFs and Energy ETFs were affected by the MF Global Holdings bankruptcy.
In other news, business activity reports were mixed today; reports showed slowing business in Chicago but increased manufacturing in Texas, the mixed reports being a further reminder we are not out of the woods yet. Tomorrow is a big day with an ISM report, construction spending report, and motor vehicle sales.
To continue, the Bank of Japan sold off 7 trillion Yen to slow down its currency, thus strengthening the dollar.
And lastly, G-20 leaders are set to meet this Wednesday; topics of conversation include growing the world economy and further solving the European crisis.
Global Stock Market Summary:
SPDR S&P 500 ETF (AMEX:SPY): -3.15, -2.45%
SPDR Dow Jones Industrial Average (AMEX:DIA): -2.70, -2.21%
PowerShares QQQ Trust (NASDAQ:QQQ):-1.00, -1.7%
iShares Russell 2000 Index (AMEX:IWM): -2.06, -2.71%
Happy Halloween!
Wall Street Sector Selector trades a wide variety of ETFs and positions can change at any time.
Click here to learn more about John’s book and for a free membership to Wall Street Sector Selector
US Dollar ETFs React To Japanese Yen Intervention (UUP, UDN, UDNT, UUPT, FXY)
by ilene - October 31st, 2011 8:38 pm
Courtesy of John Nyaradi.
US Dollar ETFs such as PowerShares DB US Dollar Index Bullish (AMEX:UUP) and PowerShares DB 3x Long US Dollar Index Futures (AMEX:UUPT) rose today against the Japanese Yen after the Bank Of Japan sold off nearly 7 Trillion Yen to weaken the currency.
The US Dollar rose significantly compared to the Japanese Yen today, and several US Dollar ETFs reacted sharply to the upward trend. The PowerShares DB US Dollar Index Bullish (AMEX:UUP) ETF rose 1.94% today, as it directly correlates to US dollar prices. Today was also a good day to be investing in the PowerShares DB 3x Long US Dollar Index Futures ETN (AMEX:UUPT), as it rose 6.09% today. This ETN tracks the US Dollar on a long position, and today’s rise created enormous wealth in this currency ETF.
The Japanese intervention, though strong, is likely to be short lived, as Japan’s Yen continues to face higher prices due its perceived perception as a safer currency then US Dollars or Euros. This “safer” currency mentality likely comes from fears about Europe and a possible Chinese bubble. (AMEX:UUP) and (AMEX:UUPT) are likely to be contenders for profitable dollar ETF trading, as long as The Bank Of Japan keeps injecting Yen into the system, and Europe remains on firm footing after last weeks debacle.
On the other side of the spectrum, PowerShares DB US Dollar Index Bearish (AMEX:UDN) and its brother ETN PowerShares DB 3x Short US Dollar Index Futures (AMEX;UDNT) reacted negatively to the dollar rising, as (AMEX:UDN) dropped nearly 2% today while (AMEX:UDNT) dropped a whopping 5.22%. Both of these ETFs track the dollar inversely, with (AMEX:UDN) and (AMEX:UDNT) shorting the market. It is likely that as the Japanese Yen recovers from the Bank of Japan’s sell off, the US dollar will fall and (AMEX:UDN) and (AMEX:UDNT) will be very profitable investments and an easier way to make money on a falling US dollar. However, if the current “fiat” currency rally continues, in which markets continue to rise on continued positive Euro and US economic sentiment, then these ETFs would be the first on the chopping block.
Lastly, the CurrencyShares Japanese Yen Trust (AMEX:FXY) ETF reacted very negatively to the Bank of Japan’s Yen sell-off, dropping nearly 3.13%. This ETF will likely rebound in the next few days as the Yen corrects its down spell, but…
German
Spanish
French
Italian
Portuguese
Japanese
Korean
Russian
Chinese
Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...
Ilene is editor and affiliate program
coordinator for PSW. She manages the Favorites backup site
(