Market Soapbox 04/19/05
DJIA +56 10127;SP500 +7 1153; Nasdaq +19 1932; NDX +11 1421
Resistance: DJIA 10370; SP500 1170; Nasdaq 1975; NDX 1460
Support: DJIA 9900 ; SP500 1125 ; Nasdaq 1870; NDX 1375
Strong: tech, financial, materials, energy, utility, homebuilding, networking, semi, brokerage, healthcare
Weak: airline, auto, retail, drug
Dollar: vs Yen: -0.7250 106.765 ; vs Euro: -0.0042 1.3066
Bonds: 10-yr note +20 ticks yielding -.082 4.19%
Gold: XAU +3.13%; $435.00 +0.60 CRB: 304.03 +6.34
Oil: XOI +1.83%, Cushing Crude $52.29; +$1.92; +3.81%
52 Week HiLo: NYSE 34/45; Nasdaq 33/67; Amex 15/25
A/D Volume: NYSE 3/1, Nasdaq 3/1, Amex 17/1
Volume: NYSE 2.10B, Nasdaq 1.80B
Upcoming Notable reports.
WEN: CPI, EIA Petroleum, Beigebook
THU: Jobless Claims, Leading Indicators, Philly Fed, MSupply
He's a pinball wizard, there's got to be a twist...Today marked the 10th anniversary of the Oklahoma City bombings, and we now have a German Pope. U.S., Asian (Nikkei 225 +1.16%) and European markets were up today. It was truly a media spin and investor ADD day.
All 10 sectors were in the green, 19 of 27 S&P companies beat analyst estimates. Some samples: homebuilders (DRHorton) eps +23%, pharma (Pfizer) net income plunged, consumer staples (JNJ) eps + 17.4%, financial (Merrill Lynch) profit -3%, (Coca-Cola) profit -11%, auto (GM) $1.1 Billion loss.
Dollar pounded down vs. Yen/Euro. oil, bonds, gold & commodities surged. Contra action: economic indicator (housing) down, inflation, stocks & bonds up.
Mar. PPI +0.7% Feb +0.4%. Core PPI +0.1% Feb +0.1%. PPI Energy prices +3.3%, Feb +1.4%. PPI crude goods + 4.3%, Feb -1.6. PPI Finished goods +4.9%, Feb +4.7%.
Feb -1.6%. Mar. Housing Starts 1.837M Feb. 2.195M. Mar. Building Permits 2.023M Feb 2.074M.
He stands there like a statute, becomes part of the machine...Today, the brown shoe boys on the street put lip gloss on the pig and the investors (aka, Tommy) got in a line to kiss it.
Housing starts had the biggest drop 16% since Jan 1991 and permits dropped 2.5%. Todays recommendations and upgrades were from Smith Barney, regarding "attractive" valuations on some builders after a 15% decline over the past two months. News flash: This is a sign of a weakening economy. The dollar plunged, and homebuilders surged. P.T. Barnum was right.
His disciples lead him, he just does the rest...The PPI & housing media spin resulted in a blind investor rally. This is a testimony to the fact that Tommy can't read, or do math, and has ADD, because nobody is paying attention to the details.
The media claimed the PPI suggests that inflationary pressures remain well contained. Upon further review, The PPI report clearly indicates that inflation & stagflation are markedly on the rise. Just look at the jump in the overall number, energy, crude and finished goods. Am I missing something here?
The deceptive core number (sans food & energy) seems benign. But, the last time I went shopping and excluded gasoline and food, I ran out of gas and was starving.
Today's market action was positive, but the jury is still out. Downside potential still outweighs upside at this point. The DJIA and NDX appear to be headed back to cover up their gap downs on the morning of 4/15, DJIA 10275, NDX 1440. We may cover those gaps by Friday and then head back down to DJIA 9900. Just my opinion, I could be wrong.
The 10-year note is at its lowest closing level since Feb. 17 inching closer to a yield curve inversion. Not good, wouldn't be prudent at this juncture...
Tommorrows CPI & Fed Beige Book should be as revealing as today's PPI. The question is, can Tommy see or comprehend? That deaf, dumb and blind kid, sure plays mean pinball...
Bureau of Labor Statistics PPI report
Resistance: DJIA 10370; SP500 1170; Nasdaq 1975; NDX 1460
Support: DJIA 9900 ; SP500 1125 ; Nasdaq 1870; NDX 1375
Strong: tech, financial, materials, energy, utility, homebuilding, networking, semi, brokerage, healthcare
Weak: airline, auto, retail, drug
Dollar: vs Yen: -0.7250 106.765 ; vs Euro: -0.0042 1.3066
Bonds: 10-yr note +20 ticks yielding -.082 4.19%
Gold: XAU +3.13%; $435.00 +0.60 CRB: 304.03 +6.34
Oil: XOI +1.83%, Cushing Crude $52.29; +$1.92; +3.81%
52 Week HiLo: NYSE 34/45; Nasdaq 33/67; Amex 15/25
A/D Volume: NYSE 3/1, Nasdaq 3/1, Amex 17/1
Volume: NYSE 2.10B, Nasdaq 1.80B
Upcoming Notable reports.
WEN: CPI, EIA Petroleum, Beigebook
THU: Jobless Claims, Leading Indicators, Philly Fed, MSupply
He's a pinball wizard, there's got to be a twist...Today marked the 10th anniversary of the Oklahoma City bombings, and we now have a German Pope. U.S., Asian (Nikkei 225 +1.16%) and European markets were up today. It was truly a media spin and investor ADD day.
All 10 sectors were in the green, 19 of 27 S&P companies beat analyst estimates. Some samples: homebuilders (DRHorton) eps +23%, pharma (Pfizer) net income plunged, consumer staples (JNJ) eps + 17.4%, financial (Merrill Lynch) profit -3%, (Coca-Cola) profit -11%, auto (GM) $1.1 Billion loss.
Dollar pounded down vs. Yen/Euro. oil, bonds, gold & commodities surged. Contra action: economic indicator (housing) down, inflation, stocks & bonds up.
Mar. PPI +0.7% Feb +0.4%. Core PPI +0.1% Feb +0.1%. PPI Energy prices +3.3%, Feb +1.4%. PPI crude goods + 4.3%, Feb -1.6. PPI Finished goods +4.9%, Feb +4.7%.
Feb -1.6%. Mar. Housing Starts 1.837M Feb. 2.195M. Mar. Building Permits 2.023M Feb 2.074M.
He stands there like a statute, becomes part of the machine...Today, the brown shoe boys on the street put lip gloss on the pig and the investors (aka, Tommy) got in a line to kiss it.
Housing starts had the biggest drop 16% since Jan 1991 and permits dropped 2.5%. Todays recommendations and upgrades were from Smith Barney, regarding "attractive" valuations on some builders after a 15% decline over the past two months. News flash: This is a sign of a weakening economy. The dollar plunged, and homebuilders surged. P.T. Barnum was right.
His disciples lead him, he just does the rest...The PPI & housing media spin resulted in a blind investor rally. This is a testimony to the fact that Tommy can't read, or do math, and has ADD, because nobody is paying attention to the details.
The media claimed the PPI suggests that inflationary pressures remain well contained. Upon further review, The PPI report clearly indicates that inflation & stagflation are markedly on the rise. Just look at the jump in the overall number, energy, crude and finished goods. Am I missing something here?
The deceptive core number (sans food & energy) seems benign. But, the last time I went shopping and excluded gasoline and food, I ran out of gas and was starving.
Today's market action was positive, but the jury is still out. Downside potential still outweighs upside at this point. The DJIA and NDX appear to be headed back to cover up their gap downs on the morning of 4/15, DJIA 10275, NDX 1440. We may cover those gaps by Friday and then head back down to DJIA 9900. Just my opinion, I could be wrong.
The 10-year note is at its lowest closing level since Feb. 17 inching closer to a yield curve inversion. Not good, wouldn't be prudent at this juncture...
Tommorrows CPI & Fed Beige Book should be as revealing as today's PPI. The question is, can Tommy see or comprehend? That deaf, dumb and blind kid, sure plays mean pinball...
Bureau of Labor Statistics PPI report
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