Wall Street News

Wall Street News

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June 8, 2015

U.S. stocks fell on Monday as disappointing economic data from China and Europe triggered a bout of selling in global equity markets.

December 1, 2014

U.S. Stocks Trade Lower

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  • Stocks retreated Monday as manufacturing data overseas raised fresh fears of slowing economic growth, while a disappointing Black Friday weekend weighed on U.S. retailers.
  • The Nasdaq Composite saw its steepest drop in seven weeks, dragged down by big declines in tech giants such as Apple, Inc., Google Inc., Facebook Inc., and Alibaba. Energy and utility stocks were the only bright spots on Wall Street, rising in tandem with a spike in oil prices.
  • Two factory readings in China showed only modest expansion for November, while similar readings for Germany, France and Italy indicated contraction, The Wall Street Journal reported.
  • The weak readings spurred declines in U.S. industrial stocks and other shares tied to economic output.
  • Elsewhere Monday, retail stocks posted sharp losses following disappointing Black Friday sales. Retail spending over the Thanksgiving weekend fell 11%, according to the main industry trade group, a sign that early deals are losing their allure.
  • The weak turnout came as a surprise to many investors, who had been betting that an improving economy and falling gasoline prices would pad retailer profits during the holiday shopping season. Many analysts attributed the poor showing to heavy discounts ahead of Black Friday.
  • Gold prices saw a massive rebound Monday and hit a five-week high, after prices overnight scored a three-week low. The huge daily trading range in gold prices was the largest in years. Several factors worked to support gold Monday, including heavy short covering and bargain hunting. A weaker U.S. dollar index and a bounce in crude oil prices Monday were also featured to start the trading week and the first trading day of the month. News that Moody’s cut the Japanese government’s credit rating was credited with prompting some safe-haven demand for gold, especially from Asian investors.
  • The dollar fell against the yen and the euro on Monday as lower oil prices softened inflation expectations, making investors cautious about the prospects of an increase in U.S. interest rates.
  • Later in the week, investors will shift their focus to Thursday’s European Central Bank meeting, with expectations rising that officials with signal intentions to expand their asset-purchase program in a bid to jump-start the region’s flagging economy, according to The Wall Street Journal.



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.