Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Gold, Silver & HUI Stocks Big Pictures - 28th Sep 20
It’s Time to Dump Argentina’s Peso - 28th Sep 20
Gold Stocks Seasonal Plunge - 28th Sep 20
Why Did Precious Metals Get Clobbered Last Week? - 28th Sep 20
Is The Stock Market Dow Transportation Index Setting up a Topping Pattern? - 28th Sep 20
Gold Price Setting Up Just Like Before COVID-19 Breakdown – Get Ready! - 27th Sep 20
UK Coronavirus 2nd Wave SuperMarkets Panic Buying 2.0 Toilet Paper , Hand Sanitisers, Wipes... - 27th Sep 20
Gold, Dollar and Rates: A Correlated Story - 27th Sep 20
WARNING RTX 3080 AIB FLAWED Card's, Cheap Capacitor Arrays Prone to Failing Under Load! - 27th Sep 20
Boris Johnson Hits Coronavirus Panic Button Again, UK Accelerting Covid-19 Second Wave - 25th Sep 20
Precious Metals Trading Range Doing It’s Job to Confound Bulls and Bears Alike - 25th Sep 20
Gold and Silver Are Still Locked and Loaded… Don't be Out of Ammo - 25th Sep 20
Throwing the golden baby out with the covid bath water - Gold Wins - 25th Sep 20
A Look at the Perilous Psychology of Financial Market Bubbles - 25th Sep 20
Corona Strikes Back In Europe. Will It Boost Gold? - 25th Sep 20
How to Boost the Value of Your Home - 25th Sep 20
Key Time For Stock Markets: Bears Step Up or V-Shaped Bounce - 24th Sep 20
Five ways to recover the day after a good workout - 24th Sep 20
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Stock Market Holds Up Well Despite The Newsflow

Stock-Markets / Financial Markets 2009 Jul 30, 2009 - 03:01 AM GMT

By: PaddyPowerTrader

Stock-Markets

Best Financial Markets Analysis ArticleYesterday was strange with bad news coming thick and fast, but yet again stocks proved remarkably resilient closing with only a mild red hue. Crude oil dropped below $64 barrel (after a jump in inventories) which should have pressured producers more. Investors frowned upon the terms Yahoo finally managed to extract from Microsoft.


The auction of the 5 year U.S. government Treasury bonds was sloppy >and poorly received (with a big tail). Durable goods orders disappointed with a big miss. And then there was the news from China regarding banks pulling away from new lending. After all this, the Dow finished down a mere 26 points. So what caused this gravity defying performance? The Fed’s Beige book made for happier reading with most of the 12 regional Fed member districts detecting a slower pace of decline in the last two months. Maybe it was Prof Moriarty again in the form of some Goldman programme buying if you believe the conspiracy theorists.

Today’s Market Moving Stories

  • After Wednesday’s dramatic falls, Asian markets are struggling for a foothold. Japanese stocks have been buoyed by corporate earnings and better industrial output data while Chinese stocks are again selling off despite an official statement from the PBoC that says that monetary policy will remain accommodative. That said, with A-share prices almost doubling this year, some profit-taking is probably justified.
  • We are now half way through the U.S. earning season and thus far, 74% of the companies have reported upside earnings “surprises”. Fire all those expert analysts who were so easily duped I say.
  • Following the weak US consumer confidence report on Tuesday, the focus has now turned to China, where unreasonable lending is raising more questions about the sustainability of the domestic recovery. Fears on those two themes (US consumers and China) certainly have the potential to keep V-shape supporters awake at night. Of course, global manufacturing news continues to point towards a very mild recovery in Q3 (ex-transportation orders yesterday reported a 1.1% rise for June), but without strength in the two areas above, the recovery there will soon be questioned.
  • Focus will remain on China, following yesterday’s news that two key state banks are seemingly limited in the amount of funds available for the rest of the year. The Chinese central bank has tried to clarify the situation, with soothing words suggesting the market misinterpreted their guidance and that they will maintain a loose monetary policy, while using market tools, if required, to adjust the situation. Nevertheless, one instinctively feels the stock market understood the real situation as the authorities have a long record of running a flag up the pole to see who salutes for acting officially.
  • The latest Nationwide UK house price survey shows prices rose for the third successive month in July. The average price now stands at £158,871, a 1.3% increase for the month. The figure represents a 6.2% YoY decline, a strong improvement on June’s figure of a 9.3% YoY decline. So far in 2009 prices have increased by 1.3%, which suggests a positive year for house prices. The data also points to just 100,000 new homes built in the UK for 2009, a historic low.
  • The Fed’s Beige Book was almost identical in content and tone to the FOMC’s post June meeting statement and the minutes that accompanied that gathering. To that extent then the document did not indicate that the Fed will be removing any policy assistance soon, and indeed if anything may actually yet add to its offerings. The Beige Book noted that upward price pressures were minimal and that wage pressures were either steady or falling in most districts. It said lending activity was stable to weak while bank credit standards remained tight. The Beige Book recognised that commercial real estate markets had weakened further and that residential real estate remained soft. ‘Sluggish retail sales’ and ‘very soft employment trends’ are spoiling the party.
  • In the UK, consumer credit numbers and data from the BSA indicated that not only is lending limited but consumers are turning to savings to help themselves out. The Wall Street Journal picks up on these features with the headline ‘Europe’s banks still lending shy’. The UK’s Daily Telegraph meanwhile takes a slightly different tack, but it is still down the same lines – that quantitative easing isn’t working and that the BoE has left itself with a £125bn pile of Gilts it doesn’t want and without much (anything) to show for its efforts.
  • According to data from Insidercow.com, U.S. insider selling of equities remains at record highs while insider buying of stock is at record lows. The ratio is actually 30:1. This despite a 50% rally in stock since the March 9th low and the endless daily stream of “better than expected” earnings.
  • So much for Obama’s salary cap for bankers. Citigroup is considering paying a $100 million bonus to one guy.
  • This is the next big boulder coming down the incline towards recovery according to the naysayers.
  • If you get a chance, please take three minutes to fill out paddypowertrader’s content survey.

First Draft Of NAMA Legislation
The long awaited draft legislation for the creation of the National Asset Management Agency, NAMA, is expected to be released on the Department of Finance website this evening at 5pm. There are likely to be numerous amendments to the document before it is finally voted on in September. There are a few snippets from the proposed legislation in the papers this morning. As has become clear over the last number of days, there is unlikely to be any significant information on the valuation methodology in the legislation. However, it is likely to lay out the necessary powers for NAMA for it to acquire loans from the banks and to set the valuation criteria, along with a wider range of powers considered necessary to get the agency set up and then to maximise the value of loans purchased for the taxpayer. Reports also suggest that each bank will have one opportunity to appeal the value put on loans acquired from it by NAMA once all the loans have been transferred, with final say on any valuation challenge resting with the Minister for Finance.

Equities

  • Nothing but the same old story this morning with news of company after company leaping over the lowly set bar of earnings estimates. Automakers Honda and Nissan starred overnight while this morning BT and Alcatel-Lucent are up after easily hurdling expectations. The only dark clouds are coming from the heavier industrial sector where Siemens had the temerity to miss estimates and BASF put out a profit warning.
  • Ryanair continues to grow in Spain with the announcement yesterday 39 new routes to (and from) the Canary Islands for the winter period (starting October). The new routes are between the Canary Islands and the UK (mainly), Spain, Germany, Ireland, Belgium and Portugal and the airline indicates that this will bring two million new passengers to the region. Following on from its recent emphasis on the high airport charges and travel taxes in the UK and Ireland, Ryanair pointed to the “zero” tourist taxes and 100% discount on airport charges this winter. It indicates that the extension of the airport charges discounts will determine whether or not these routes are continued post March 2010.
  • United Drug will issue an interim management statement for its third quarter tomorrow. And while they may have benefited from favourable currency tailwinds the current pharmacy climate in Ireland (with 700 outlets plan to withdraw services to medical card holders from Aug 1) and the severe pressure that healthcare budgets are under in both Ireland and the UK represent significant unknowns and challenges.

Earnings
Earnings toady from AstraZeneca, ExxonMobil, Colgate-Palmolive, Eastman Kodak, Kellogg, MasterCard, Motorola, Disney, MetLife.

And Finally… Ben, This Note Is For You

Disclosures = None

By The Mole
PaddyPowerTrader.com

The Mole is a man in the know. I don’t trade for a living, but instead work for a well-known Irish institution, heading a desk that regularly trades over €100 million a day. I aim to provide top quality, up-to-date and relevant market news and data, so that traders can make more informed decisions”.

© 2009 Copyright PaddyPowerTrader - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

PaddyPowerTrader Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules