Tag Archives: S&P

USD Off To Slower Start In August

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

WHAT WE’RE WATCHING TODAY

Dollar Gets Off To Slower Start In August

The U.S. dollar got off to a cooler start today after experiencing its biggest one-day fall in almost a month after a series of economic data led markets to push back expectations for the start of the Federal Reserve’s rate-tightening cycle. U.S. jobs growth slowed in July, the unemployment rate unexpectedly edged up and inflation was restrained, a mix of figures that may indicate the Fed will keep interest rates low for longer. The dollar index was last at 81.321 .DXY having retreated from a 10 1/2 month peak of 81.573. It had fallen 0.2 percent on Friday, a modest decline but still the biggest one-day fall in over three weeks. The index had rallied more than 2 percent in July as improving U.S. data convinced markets that an interest rate rise could be less than 12 months away. That allowed the euro to push back above $1.3400 EUR and off an eight month trough of $1.3366 plumbed last week. Against the yen, the dollar recoiled to 102.56 JPY, having stretched to a near four-month high of 103.15.

S&P 500 Sees Biggest Weekly Decline Since 2012

Data showing U.S. job growth eased off in July and the unemployment rate unexpectedly rose suggests that the Federal Reserve may keep interest rates low for a while. The jobs growth, which came in below economists’ forecasts, relieved some investors worried about how soon the Fed could increase interest rates after data on Thursday showed U.S. labour costs recorded their biggest gain in more than 5 1/2 years in the second quarter. Seven of the 10 S&P 500 sectors ended lower with S&P financials among sectors with the biggest losses. The Dow Jones industrial average fell 69.93 points to 16,493.37, the S&P 500 lost 5.52 points to 1,925.15 and the Nasdaq Composite dropped 17.13 points to 4,352.64. For the week, the S&P 500 fell 2.7 percent, its biggest weekly percentage loss since the week ending June 1, 2012. The Dow ended down 2.8 percent for the week, while the Nasdaq fell 2.2 percent. The Dow’s losses pulled it deeper into negative territory and is consequently down 0.5 percent for the year to date.

WTI Trades Near Six-Month Low Before Economic Data

West Texas Intermediate crude traded near the lowest price in six months before data that will signal the strength of the economy in the U.S., the world’s biggest oil consumer. Brent was steady in London. Futures were little changed in New York after capping the biggest weekly decline in seven months on Aug. 1. The Markit Economics purchasing managers index for U.S. services is due tomorrow, while factory order data is also scheduled this week. WTI for September delivery was at $98 a barrel in electronic trading on the New York Mercantile Exchange, up 12 cents. The contract slid 0.3 percent to $97.88 on Aug. 1, the lowest close since Feb. 6. The volume of all futures traded was about 1.3 percent above the 100-day average. Prices are down 0.5 percent this year. Brent for September settlement rose 21 cents to $105.05 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $7.08 to WTI. It closed at $6.96 on Aug. 1.

That sums up today’s highlights! We hope you have a profitable day on the markets.

Apple Earnings: Investors Look For Signs Of What’s To Come

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: USD CPI @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Apple Earnings: Investors Look For Signs Of What’s To Come

With Apple Inc due to report its fiscal third-quarter earnings today, investors will be looking for hints on new market categories and launch dates that the company may be working on. In particular, investors will be specifically interested to see if Apple’s CEO Tim Cook relays any news about a possible smart-watch. Along with the company’s foray into wearables, investors will also be listening for clues about when the company plans to launch the iPhone 6 which would boost Apple’s gross margins. Product timing issues could, however, skew guidance thus sending shares lower. If this happens, investors should use that opportunity to look at buying shares and take advantage of buying on the weakness. The company is expected to post earnings of $1.23 per share on revenue of $37.98 billion in revenue.

Last quarter, Apple reported iPhones sales of 43.7 million, well ahead of the 37 million to 38 million iPhones analysts had expected. Since then the company has seen its share price soar more than 25 percent. Strong earnings results from some of Apple’s suppliers may mean the tech giant could post a positive surprise. For example, Skyworks posted 35 percent revenue growth year over year when it reported earnings last week and that could translate to good news for Apple.

WTI Rises for Second Day; Brent Gains

West Texas Intermediate rose for a second day before stockpile data that may signal the strength of fuel demand in the U.S., the world’s biggest oil consumer. Brent also increased in London. Futures climbed as much as 0.5 percent in New York. Crude inventories probably shrank by 2.8 million barrels last week, according to a Bloomberg News survey before a report from the Energy Information Administration tomorrow. WTI for August delivery, which expires today, gained as much as 56 cents to $105.15 a barrel in electronic trading on the New York Mercantile Exchange. The contract closed at $104.59 yesterday, the highest level since July 1. September crude was up 45 cents at $103.31 at 12:14 p.m. Singapore time. The volume of all futures traded was about 77 percent above the 100-day average. Front-month prices have advanced 6.8 percent this year.

U.S. Stocks Finish Slightly Lower

U.S. stocks slipped yesterday as investors remained cautious about instability in Ukraine and Gaza, though the three major indexes ended well off their lows, a sign that some appetite for riskier assets remained. The S&P 500 fell as much as 0.6 percent, though it recovered most of those losses and closed above its 14-day moving average, suggesting buyers were using weakness to come back into the market. However, nine of the 10 primary S&P 500 sector indexes fell. The S&P energy sector index represented the only positive group, up 0.2 percent. Violence has escalated in the Gaza Strip and while the impact to the U.S. economy is seen as minimal, investors are concerned about the fallout from an extended period of increased violence and the prospect that it could spread to other parts of the Middle East. Market participants also kept watch on the uncertain situation in Ukraine. The Dow Jones industrial average fell 48.45 points or 0.28 percent, to end at 17,051.73. The S&P 500 declined 4.59 points or 0.23 percent, to finish at 1,973.63. The Nasdaq Composite dropped 7.44 points or 0.17 percent, to close at 4,424.70.

That sums up today’s highlights! Don’t forget to keep any eye for updates on today’s tradable events including Apple earnings via our Facebook, Twitter, Google+ and LinkedIn. We hope you have a profitable day on the markets.

Dollar Headed for Best Week Versus Yen Since April Before Payrolls

Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:

Main Trading Event Of The Day: U.S. Non-Farm Payrolls @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

Dollar Headed for Best Week Versus Yen Since April Before Payrolls

The dollar headed for its biggest weekly gain since April versus the yen ahead of today’s U.S. Non-Farm Payrolls report which is expected to show that employers added more than 200,000 jobs for a fourth month as the labour market recovers. The euro was little changed today after jumping the most since March versus the dollar yesterday as the market rejected the European Central Bank’s unprecedented effort to weaken the single currency. The dollar was little changed at 102.34 yen having gained 0.6 percent this week, the most since the period ended April 18. The euro traded at $1.3657 after jumping 0.5 percent yesterday, the most since March 6. The Euro was little changed at 139.75 yen.

Meanwhile, the Dow and the S&P 500 ended at a new record on Thursday after the European Central Bank cut rates to record lows and pledged to do more if needed to fight off the risk of deflation. Investors are now focused on today’s U.S. payrolls report for May. It is expected to show job growth slowed last month and the unemployment rate ticked up, but not by enough to upset the view that the economy is bouncing back. The number of Americans filing new claims for unemployment benefits rose last week, but the underlying trend continued to point to a firming labor market.

Draghi Fights Deflation With Banks Rather Than Bonds

The banking system rather than the bond market is Marion Draghi’s chosen route as his best ally, for now at least, in the fight against deflation. The European Central Bank yesterday cut interest rates to unprecedented lows and its president unveiled measures to beef up lending for banks in a bid to revive inflation hovering close to a quarter of his target. With much hinging on whether banks will boost credit themselves, failure to spur consumer prices will leave Draghi with little option but to enter the uncharted terrain of U.S.-style bond buying. Some executives have more hope than confidence that Draghi’s current plan will work. The negative deposit rate is aimed at stemming unwarranted increases in money-market rates and weakening the euro, yet could backfire if banks retrench further or pass the cost on to customers. A risk of the new lending venture is that banks may pass on the money only to find companies can’t repay it which may mean that Draghi ultimately has no choice but to engage fully with QE.

Higher Coffee Prices Hit Consumers

The moment to hoard cheap coffee beans has passed. The price of coffee futures peaked in April and the higher commodity costs are now hitting consumers at the supermarkets. Coffee prices spiked after drought hit the crop in Brazil, the world’s largest grower, even though rains have recently eased some of the damage. Changes in the futures market don’t tend to show up in retail prices for months. In February, Arabica futures rallied by more than 20 percent to start the year. After reaching a high of $2.12 per pound in April, coffee futures prices have since cooled somewhat so there’s hope yet that retail prices will fall again, in time.

That sums up today’s highlights! We hope you have a profitable day on the markets.

U.S. Stocks Gain After Data While Asian Stocks Rebound

Here’s Friday’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the markets:

Main Trading Event Of The Day: CAD Retail Sales m/m @ 12.30 GMT

WHAT WE’RE WATCHING TODAY

U.S. Stocks Gain After Data While Asian Stocks Rebound From Biggest Decline In Seven Months

U.S. stocks rose for the third time this week as reports on leading indicators and regional manufacturing fuelled optimism in the economy, overshadowing concern, following Wednesday’s FOMC meeting, that interest rates may rise in the middle of next year. The Standard & Poor’s 500 Index gained 0.6 percent to 1,872.01 at 4 p.m. in New York. The Dow Jones Industrial Average added 108.88 points, or 0.7 percent, to 16,331.05. Both gauges erased most of yesterday’s declines. Asian stocks, meanwhile, rose with a regional index of shares outside Japan rebounding from the biggest loss yesterday since August. The MSCI Asia Pacific excluding Japan Index advanced 0.7 percent to 452.10, paring this week’s slide to 0.4 percent. The measure fell 1.7 percent yesterday, taking its loss this year to 4.1 percent as data from exports to industrial output showed signs of a slowdown in China and Federal Reserve Chair Janet Yellen indicated U.S. interest rates could rise as soon as six months after the end of the central bank’s bond-buying program. Analysts claim to be not overly cautious and that the focus will be directed back towards China on Monday.

European Markets Set For Lacklustre Open Following Banking Reform News

European markets are expected to have a subdued open after a busy week, as the market absorbs concerns about the Federal Reserve and banks. The FTSE was down 4 points to 6538, the Dax is seen steady at 9296 and the Cac up 1 point to 4328. On Thursday, the European Union finally agreed the terms to complete the region’s banking union. It was also a relatively quiet news day in the Ukraine crisis, with more sanctions announced, and a downgrade of Russia’s credit rating by Standard & Poor’s. In the U.K., data on public sector finances and UK banks external claims is expected at 9.30 GMT.

Time Is Of The Essence For Apple To Launch iWatch

Apple needs to launch an iWatch sooner rather than later, analysts say, or the company will risk losing its innovative edge to rivals. Apple also risks missing the huge opportunity that exists in the fast-growing wearable space if it doesn’t come out with something soon as there is no doubt that this sector is suddenly getting crowded. Pressure is coming from companies like FitBit and Jawbone who are making these devices and building an ecosystem around these wearables. There’s no shortage of speculation about what an iWatch will do, or when it will come out, but until Apple makes it official, the device is still completely hypothetical. Still, analysts who cover the company seem fairly certain that the company will debut a wearable product in 2014, particularly because wearables would be a natural fit for Apple’s ecosystem. The pressure is on for Apple and although it is not in the company’s style to rush things, they shouldn’t wait too long…

That sums up Friday’s highlights! Stay up-to-date with all the trading events and market news via our Facebook, Twitter, Google+ and LinkedIn pages! We hope you have a profitable day on the markets and wish you a great weekend!

Just A Minute!

Welcome to Wednesday’s ‘Just A Minute’. Here’s a 60 second summary what’s happening in the markets today:

Main trading events of the day: U.S. ADP Non-Farm Employment Change @ 08.15, CAD Building Permits m/m @ 08.30 & @ U.S. ISM Non-Manufacturing PMI @10.00 GMT
Stocks to watch: GlaxoSmithKline PLC, Twitter Inc, Walt Disney Company
Trader Tip For The Day: Watch Twitter & Walt Disney prices as earnings releases are expected today

What We’re Watching Today: Stock Markets

A big earnings day today as Twitter is due to post its first quarter report. Most analysts remain cautious on the stock, which some see as overvalued. We’re also still keeping an eye on the S&P and emerging stocks. U.S. stocks rose, with the Standard & Poor’s 500 Index rebounding following the biggest drop since June and added 0.8 percent. Turkey’s lira led gains among emerging-market currencies but overall, a gauge of stocks in developing nations extended its worst-ever start to a year.

Today’s Headline:

Emerging Markets Turmoil Sparks Credit Crunch Fears

Very much in the news right now, we continue to monitor the activities of emerging markets and possible economic repercussions. As economic growth slows in Brazil, India and China, there are fears that capital outflows out of these countries could be the first signs of a credit crunch — and the third stage of the global financial crisis after the U.S. subprime rout and the euro zone’s debt woes. lberto Gallo, who heads European macroeconomic credit research at RBS, said the outflows were indicators that two major emerging market economies, Brazil and China, were already in the early stages of a credit crunch. Banks create a credit crunch when they become more cautious to lend out and push up the cost of borrowing, making it harder and harder for companies to borrow to grow their businesses. A credit crunch is normally a sure sign a country’s economy is heading into stormy waters. Some analysts are even referring to the current emerging market turmoil as the “third leg” of the global financial crisis that struck in 2007.

Tech:

Google Wallet

Here’s an interesting one for our app fans. While Google Wallet has allowed you to store physical loyalty cards inside its app for some time, having to type in a long series of numbers tended to discourage people from adding them. An update that rolls out on iOS today (and on Android last week) uses your smartphone’s camera to take a picture of the barcode and then adds the loyalty card to your digital wallet. The app can also alert you via push notification when you pass by a store where you have enrolled in the loyalty program. Given how often people abandon their loyalty programs, it could also help people get the rewards they dreamed of getting when they first signed up for a card. Google Wallet has until now been a troubled product but today’s updates make it far more useful. Keep an eye on Google prices today (when don’t we!)

That sums up Wednesday’s highlights! Remember, watch for those important earnings announcements today and keep in touch with us on Facebook, Google+ & Twitter for all the latest news, information, tips and more! Trade with the experts and become a superior trader!

Indices Hit Record Highs on Soaring Stocks

Benchmark indices hit record highs as stocks rallied yesterday, while Treasuries slipped, after the Federal Reserved announced it had gained sufficient confidence in the job market to begin tapering, promising to keep interest rates low. Both the U.S. dollar and commodities gained on the market.

The Standard & Poor’s 500 Index (SPX) climbed 1.7 percent, its biggest advance in 8 weeks, and the Dow Jones Average (INDU) surged 292.71 points. The U.S. equity volatility benchmark gauge lost the most since October. The dollar skyrocketed to a five-year high against the yen and gained against most of its major peers.

Equities have been taking hits on all sides since May, when Bernanke announce that a tapering programmed would likely start this year. The S&P 500 plunged 5.8 percent in the period from 21st May through 24th June. After the Fed shocked the markets with its decision not to taper in September, the index regained lost points and set new highs.

The index had lost 1.5 percent from its last record reached on 9th December, on the speculation that improving U.S. economic data would prove sufficient for tapering to begin. The S&P has climbed a total of 27 percent this year, the mist since a 1997 surge of 31 percent.

Chocolate Turning Gold?

Asian countries have been developing a chocolate habit that will create the longest shortfall in over fifty years.

It it predicted that cocoa consumption will outstrip production by about 70,000 metric tons in the 12 months that began on 1st October and the deficits will continue through 2018. According to Laurent Pipitone, the head of statistics at the International Cocoa Organisation in London, the six-year long deficit would be the longest one since collection of data began in 1960. By the end of 2014 prices may gain as much as 15 percent to $3,200 a ton, according the median estimates of 14 traders surveyed by Bloomberg.

Sales of confectionery chocolate around the world are expected to increase by 2.1 percent to a record 7.3 million tons next year, following a 2 percent increase in 2013, according to Euromonitor International Ltd. Chinese sales more than doubled over the last decade, growing at a higher pace than Western Europe gains. Chocolate makers such as Nestle SA, Barry Callebaut AG and Lindt & Spruengi AG will be faced with higher costs too on account of lower supplies.

Cocoa has already climbed 24 percent this year to $2,771 a ton on ICE Futures U.S. New York, marking the second-greatest advance among the 24 commodities monitored by the Standard & Poor’s GSCI gauge, which had an overall drop of 3.4 percent.

C and D Quality Stocks to Outperform A+ Grade Ones

Why would you ever want to buy stocks with worst-track performance on both earnings and dividends? According to the head of U.S. equity strategy at Bank of America Corp.’s Merrill Lynch unit, Savita Subramanian, because they are set to beat their best-performing peers next month.

To reach this conclusion Subramanian monitored the performance gap between the two worst-performing stocks and the two highest-rated stocks, as indicated by Standard & Poor’s. S&P uses a classification system of companies by assigning grades of A+, A, A-, B+, B, B-, C, and D, based on each ones revenue and payout track of the past decade. According to Bank of American indices, C and D stocks fared close to A+ shares in January.

For the first 11 month of the current year, C and D stocks took the lead with about 17 percent points. For nine full years between 1987 and 2012 they came out first by over 10 points, every time performing better in the following January.

Subramanina, who is based in New York, wrote in her report: “This all bodes well for a low quality rally in January,” adding that the C and D shares exceeded their A+ peers by about 6.5 points for the month over the past 25 years.

Bank of America data indicated that stocks on the two lowest levels of S&P’s quality scale outperformed those on the top ranks for the last five years.

A Rally Before The Storm?

The S&P 500 finished lower on Tuesday, bringing the winning streak of gains to an end as investors moved away from technology, but the Dow managed to pull some gains and thus end at yet another record high. The Dow also hit a record high, while the S&P 500 is approaching its own high of 1,565.15, from October 9, 2007. The market’s surge recently has pushed the Dow up 10.3 per cent for the year and boosted the S&P 500 by 8.9 per cent for 2013 until now. Signs of improvement in the economy and the Fed’s quantitative easing policies might indicate a better future, but one economist, Steve Keen, believes that the US stock market is a massive bubble. “Nothing can accelerate forever. At some point the acceleration stops, and when it does the market breaks,” Keen told The Daily Ticker.

And The Rally Continues

As we predicted on Monday morning, the stock rally continued, with Dow closing at a record high and S&P 500 finishing just one per cent from its all-time high. On Monday night the Dow ended at 14,447.29, spearheaded by Boeing, the American multinational aerospace and defence corporation and Merck, the global healthcare leader. The S&P 500 rose by 5.04 points to reach 1,556.22 by closing time. The index which tracks the top 500 publicly traded businesses in the U.S was almost 0.5 per cent from its all-time high of 1,565.15, which it reached in 2007. Moreover, Nasdaq increased by 8.51 points to hit 3,252.87 by closing of trading on Monday.

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