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U.S. stocks fluctuate worries about Iraq instability

June 19, 2014

U.S. Stocks Fluctuate After Fed Sends S&P 500 to Record

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  • U.S. stocks fluctuate as President Obama announced he will send additional 300 U.S. military advisers to assist the Iraqi army battle and is prepared to take actions if necessary. This news discouraged investors to invest in the market due to the uncertainty of US entering another war.
  • The S&P 500 +0.13% added 2.49 points,  to 1,959.47. The Dow Jones Industrial Average+0.09% gained 14.84 points, to 16,921.46. The Nasdaq Composite  -0.08% ended the day down 3.51 points, or 0.1% at 4,359.33.
  • Defensive utility and consumer-staples stocks led the market, while technology and financial stocks lagged behind.
  • The Philadelphia Federal Reserve Bank said its business activity index jumped to 17.8 from 15.4 in May, above the forecast for a reading of 14. Thus showing there is growth in the factory sector.
  • Fewer Americans also filed for few unemployment benefits, initial claims for state unemployment benefits slipped 6,000 to a seasonally adjusted 312,000, slightly below the 314,000 forecast.
  • The Chicago Board Options Exchange Volatility Index, known as the VIX, added 0.2 percent to 10.63 today. VIX is widely used to measure market risk.
  • Crude-oil futures rose 0.6% to $106.17 a barrel,  Gold futures climbed 3.2% to $1,313.30 a troy ounce.

LIVE: FED WILL REDUCE QE BY $10b to $35b per month.

June 18, 2014

yellen announced that Fed has decided to continue Fed reductions. 45b to 35b per month and has reduced economic forecast for rest of the year.

Fed decision on QE in 3 minutes!

June 18, 2014

The decision on QE and forecast for rest of the year.

U.S. stocks gain on small-cap stocks (Russell 2000); Inflation raising bank shares

June 17, 2014

Stocks Make Gains

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  • U.S. stocks advance slightly as small – cap stocks (Russell 2000) help indexes gain. The Russell 2000 Index gained 0.8%.
  • The Dow Jones Industrial Average advanced 33 points, or 0.2%, to 16816. The S&P 500 index tacked on five points, or 0.3%, to 1943, while the Nasdaq Composite Index rose 20 points, or 0.5%, to 4341.
  • Financials were the strongest of the 10 S&P 500 sectors, boosted by strength in Dow components Goldman Sachs and J.P. Morgan Chase.
  • On Wednesday, the Fed is widely expected to announce another $10 billion reduction in its highly stimulative bond-buying program to $35 billion a month.
  • Crude-oil futures fell 0.5% to $106.36 a barrel. Gold futures lost 0.3% to $1,271.70 an ounce, after investors turn their attention away from the Middle East situation and focused on data pointing to higher inflation, which helped lift bank shares.  Financials tend to benefit when inflation and interest rates start increasing off low levels, because the higher rates increase the profits banks can make on loans.
  •  New residential construction and building permits, which are an indicator of future construction, fell more than expected in May.  Housing starts fell 6.5% to a seasonally adjusted annual pace of just more than 1 million units in May.  Building permits fell 6.4% to an annual pace of 991,000 last month.
  • Tomorrow will be the start of a 2 Day Fed meeting on the Federal Reserve Stimulus program of bond purchasing, also known as Quantitative Easing.

U.S. stocks fluctuate as positive Manufacturing data against rising Iraq tension

June 16, 2014

U.S. Stocks Rise as Deals, Data Offset Tension in Iraq

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  • U.S. stocks fluctuated throughout the day as investors eye the rising tension in Iraq and positive manufacturing data.
  • The tension overseas in Iraq and the rising violence seems to be rising and leaving a dent in oil prices as oil prices continue to increase and hurt US markets because of the possibility Iraq oil production can be scaled back. Rising oil prices has negative effects such as rising prices affect consumers and profits.
  • Manufacturing data released earlier rose to 19.3 from 19.0 in May, versus expectations of a decline to 15.0.
  •  May industrial production rose 0.6% vs. the consensus 0.5%.
  • Factory orders in the state hit a four-year high and inventories increased significantly, indicating that restocking will contribute to growth this quarter.
  • The Dow Jones Industrial Average edged 0.03% higher to 16,781.39, while the S&P 500 fared a little better, up 0.08% to 1,937.78. The Nasdaq gained 0.24% to 4,321.11
  • Gold futures advanced 0.1% to $1,275.10 an ounce. Oil futures settled a penny lower at $106.90 a barrel Monday.
  • IMF also cut U.S. 2014 growth forecast to 2%. IMF encouraged that US should not end their QE anytime soon and should continue it because the Fed needs to continue to stimulate the economy through its cheap-cash policies, risking fueling instability in financial markets.
  • The Fed is expected to announce a further cut to its monthly bond purchasing program, but is not seen raising interest rates until mid-2015.

U.S. stocks end lower after disappointing retail and jobless claims data; amid Iraq tension

June 12, 2014

U.S. Stocks Fall Sharply

Retail Sales, Jobless Claims Weaker Than Forecast

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  • U.S. stocks decline due to disappointing results from retail sales and jobless claims and tensions overseas in Iraq.
  • Dow Jones Industrial Average tumbled 0.65% to 16,734.19, and the Nasdaq shed 0.79% to 4,297.63.  S&P 500 fell 0.71% to 1,930.1.
  • Retail sales increased 0.3% in May, short of expectations for a 0.7% increase. Initial claims for jobless benefits edged up 4,000 to 317,000, exceeding expectations for 310,000. Which shows consumers are spending less, and consumer spending makes up 70% of the economy.
  • The tension in Iraq has in fact affected the markets, due to supply and Iraq is a major source for oil production, the price of oil surged affecting consumers on the expensive gas prices. The increasing violence and disruption in Iraq can possibly bring US involvement back into Iraq as investors fear U.S. re-entering a war they have left. At this moment, U.S. involvement in the Iraq is uncertain.
  • Crude-oil futures rallied 2% to settle at $106.53 a barrel,  Gold futures gained 1% to settle at $1,273.60 a troy ounce.

Perspective on the Post – Financial Crisis market

June 12, 2014

Todays chart gives us perspective on the post financial crisis rally and illustrates the turnout of the markets. This chart portrays US’s S&P 500, China (Shanghai Composite), Japan (Nikkei 225), India (S&P BSE Sensex), Germany (DAX), France (CAC 40) and the UK (FTSE 100). For example S&P 500 has rallied and recovered 143% since the financial crisis.

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U.S. stocks remain mix due to valuations and increase in US inventory

June 11, 2014

A Mixed Finish for Markets With No News to Tip Big Swings

S&P 500    1,950.79  -048  -0.02%

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DOW JONES  16,945.92  +2.82  +0.02%

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NASDAQ    4,338.00   +1.75   +0.04%

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  • Tuesday U.S. stocks were mixed as analyst predict profit for companies will grow 7.4%, that’s down from a January projection for growth of 9.7 percent.
  • Data today showed U.S. wholesale inventories increased 1.1 percent in April, more than the 0.6 percent gain estimated by economists. Indicating demand for sales is decreasing among the consumers since inventory is accumulating.
  • According to Bloomberg “A separate report showed job openings rose to 4.5 million in April from 4.17 million in March.” Which indicates a increase in job openings that the economy is expanding.
  • Crude-oil futures declined 0.1% to settle at $104.35 a barrel, while gold futures added 0.5% to $1,259.80 an ounce.
  • Investors also has been cautions since stocks are at record highs they’re looking to sell rather than buy.
  • Overall it has been a quiet day for the market again.

U.S. stocks gain due to shares of small companies advancing

June 9, 2014

U.S. Stocks Rise to Records Amid Small-Cap Rally, Deals

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  • U.S. stocks advanced as as small-cap shares rallied, The Russell 2000 index of small-cap stocks climbed seven points, or 0.6%, to 1172 which helped extend the US indexes and investors wait on market indicators.
  • The Chicago Board Options Exchange Volatility Index (VIX) climbed 3.2 percent to 11.07. The gauge, known as the VIX, fell 5.9 percent last week to 10.73, the lowest level since February 2007. Which indicates minimal risk in the market as of now.
  • Later in the week, investors will are due for data on retail sales, wholesale inflation and consumer sentiment.
  • Crude-oil futures gained 1.7% to $104.41 a barrel, while gold futures added 0.1% to $1,253.50 an ounce.
  • Dow Jones climbed 0.11% to 16943.1, S&P 500 added 0.09% to 1951.27 and NasDaq finished green 0.34% to 4336.24.
  • Overall Monday has been a quiet day as investors look for any economic data to hit the market.

U.S. stocks advance due to optimistic jobs report; recovering 8.7 million jobs lost during recession

June 6, 2014

U.S. Stocks Rise as Payrolls Climb to Pre-Recession Peak

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