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
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
Does the Stock Market Really "See" the Future? - 12th Sept 20
Basel III and Gold, Silver and Platinum - 12th Sept 20
Tech Stocks FANG Index Nearing Critical Support – Could Breakout At Any Moment - 12th Sept 20
The Tech Stocks Quantum AI EXPLOSION is Coming! - 12th Sept 20
AMD Zen 3 Ryzen 4000 Questions Answered on Cores, Prices, Benchmarks and Threadripper Launch - 12th Sept 20
The Inflation Mega-trend is Going Hyper! - 11th Sep 20
Gold / Silver Ratio: Slowly I Toined… - 11th Sep 20
Stock Market Correction or Reversal? The Jury Isn't Out! - 11th Sep 20
Crude Oil – The Bearish Outlook Remains - 11th Sep 20
Crude Oil Breaks Lower – Sparking Fears Of Another Sub $30 Price Collapse - 11th Sep 20
Inflation by Fiat - 10th Sep 20
Unemployment Rate Drops. Will It Drag Gold Down? - 10th Sep 20
How Does The Global Economy Recover After This Global Pandemic? - 10th Sep 20
The Best Mobile Casino - 10th Sep 20
QE4EVER! - 9th Sep 20
AMD Ryzen Zen 3 4800x 10 Core 5ghz CPU, Cinebench Benchmark Scores (Est.) - 9th Sep 20
Stock Traders’ Dreams Come True – Big Technical Price Swings Pending on SP500 - 9th Sep 20
Should You Be Concerned About The Stock Market Big Downside Rotation? - 9th Sep 20
Options Traders Keep "Opting" for Even Higher Stock Market Prices - 8th Sep 20
Gold Stocks in Correction Mode - 8th Sep 20
The law of long-term time preference and Gold ownership - 8th Sep 20
Gold Bull Markets: History and Prospects Ahead - 8th Sep 20
Sheffield City Centre Coronavirus Shopping Opera Ahead of Second Covid-19 Peak - 8th Sep 20

Market Oracle FREE Newsletter

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

Fed Helps the Stock Market Rally

Stock-Markets / Financial Markets 2009 Aug 13, 2009 - 05:14 AM GMT

By: PaddyPowerTrader

Stock-Markets

Best Financial Markets Analysis ArticleThe Dow Jones surged yet another 120 points yesterday on the back of existing home sales which rose more than expected (due to lower prices). They stayed perky after the Fed assured us that the US economy was levelling out and that they weren’t taking away that summer punch bowl during 2009 as there is no sign of inflationary pressures.


Risky assets were already trading positively going into FOMC, brushing off the dour sentiment seen in Asia as the market mulled the signs of slower growth in China. The overriding mood of optimism was illustrated by Bloomberg’s latest survey of investor confidence, which produced a 19 point rise in the headline index to 58.1, the first reading above 50 since the survey began about two years earlier. Confidence in the US rose 18 points to 47.3, that in Europe rose 10 points to 41.1 whilst that in Asia jumped 15 points to 74.2, with Japan up 16 points to 50.0.

Whilst equity markets closed off their highs for the session, the S&P500 still managed a broad-based gain of 1.2%, with the price action reinforced by some more upbeat commentary in the insurance sector and better-than-expected earnings at luxury home builder Toll Brothers. The latter noted that its cancellation rate over the past quarter had declined to the lowest level since the housing meltdown began in 2006, helping the S&P homebuilders supercomposite close at a new high.

Today’s Market Moving News

  • Though Asian stocks gained across the board this morning, they are still largely unchanged so far in August and investors were still uncertain what would support equities beyond bullish sentiment. The MSCI index of Asia Pacific shares traded outside Japan rose 1.7%, with the biggest gains spread out across sectors, including financials, technology and consumer discretionary shares. The index has been choppy in recent weeks but is up 72% since March 9, when a global equity rally began. Japan’s Nikkei share average edged up 0.6%, driven by a variety of big auto exporters and tech names.
  • Commodity bulls have pushed oil prices further above $70 a barrel and lifted copper prices to a 10-month high, hoping for sustained demand for raw materials.
  • BHP Billiton, the world’s largest mining company, published its Full Year 2009 results and included an outlook on the commodity markets. BHP believes “commodity re-stocking in China now appears largely complete with substantial build of specific commodities at the end-user level and in strategic stockpiles”. BHP also warned that “further improvements in commodity prices in the short term should be viewed in the context of the likely supply responses from latent capacity across the industry”. However, in the long term BHP continues to expect strong growth in demand for commodities.
  • This European morning, mining stocks are looking bid. Rio Tinto shares are up 3% after it said that its Cloud Peak unit has filed an IPO statement in the US while Anglo American has climbed 2% after it concluded the sale of shares in Tongaat Hulett. The big loser this morning is insurer Aegon after announcing that it needs to raise 1bn in fresh capital through a rights issue (its off 9%).
  • A majority of economists polled by the WSJ say the recession is over, and 71% of those same economists think Ben Bernanke will get to keep his job for another term.
  • Note to Jim (the bottom of the housing market was in June) Cramer – foreclosure activity up 7% in July.
  • Harry Markopolos, the whistleblower on Bernie Madoff, believes that there are evildoers out there who will make the Ponzi scum “look like small-time.”

The Jobless Recovery
Now it may be a lagging indicator but this chart of the average duration of unemployment in weeks is downright frightening. So maybe bit your lip before uttering those “I quit” words.


Irish Equity Snippets
Greencore has issued an Interim Management Statement. In it, there is evidence of positive progress in UK convenience foods and further revenue advances in the US. These trends, together with the benefits of efficiency programmes and some margin accretion, are underlining FY adjusted EPS forecasts of 16.4c, in line with market expectations. Greencore has had a tremendous run in the past week with its share price up 23%. Despite that, its dividend yield is over 5% and these comments should be supportive.

United Drug has announced a joint venture with Medco Solutions to provide home-based pharmacy care in the UK for patients covered by the NHS. This is a green-field investment with a significant global healthcare player, in a space in which United Drug has demonstrated an interest in the past. It has a number of pilot schemes in homecare running in the UK at the moment. The Medco deal is a 50/50 JV with a reasonably modest outlay: start-up costs are believed to be in the region of £4-5mln, with the investment beginning at the end of this financial year (end-September).

Data Ahead Today
At 10:00 Euro area GDP for Q2 will be released. The German and French economies unexpectedly grew in the second quarter, bringing an end to their worst recessions since World War II. Both economies grew by 0.3% despite economists predicting contractions of 0.3% in Germany and a 0.2% in France. EUR/USD climbed half a cent to $1.4262. These early big two numbers have blown away the consensus for a -0.4% contraction for the pan-European number.

US Retail Sales for July will be released at 13:30. Look for a sharp rebound in retail sales, due almost entirely to the “cash for clunkers” program with total retail sales rising +0.8%. But, excluding both autos and gas, I’d expect that retail sales in July were flat.

Earnings from Wal-Mart (at around 13.15), Kohl’s and Nordstrom

And Finally… More From Jim The Realtor

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