Market Soapbox 09/07/05
Resistance: DJIA 10750; SP500 1250; Nasdaq 2200; NDX 1625
Support: DJIA 10250 ; SP500 1200 ; Nasdaq 2050; NDX 1535
European & Asian markets up. Dollar up vs. Yen/Euro , XAU down & gold up, XOI & oil down, commodities & bonds down. Contra action: gold & dollar up.
Yes, we are trotting out the little porker today, and he's a squealin loud.... today's Soohey Pig Award goes to the WSJ, for suggesting that steel prices may rise up to 20% in the coming months, due to Katrina/Big Easy based supply demand issues.
Prior to this blogs existence, after 9/11; I told friends that the patent corporate and government excuse for the next 4 years would be "because of the terrorists", in other words, instead of "blaming it on bad weather or the locusts or killer cicidas", blame it on the terrorists.
I fully expect "because of Katrina" or "post Nawleans" to supplant the terrorists as corporate America and the governments favourite excuse for incompetence and mismanagement, i.e. blame it on Mother Nature or the Big Easy is in for the next 4 years. Steel sector up 2.6% today on the rumours.
Effective September 1, the steel giants Nucor and US Steel hiked prices approximately 20% and are poised for additional profit in the hurricane's wake. Isn't there another name for this practice which results in windfall profits? i.e. PRICE GOUGING!!!! SOOHEY, PIG, PIG!!!
Yesterday, an up day with AUTHORITY DJIA +140, today, intially a split tape day with no follow through, then the markets finished in the green with OK internals. Utilities & transports suffered, crude oil fell 2.3% to close at $65.15.
Q2 productivity was revised to +1.8%; est +2.1% from a prior read of +2.2%; this means productivity fell. Meanwhile, labor costs were revised up to +2.5% from +1.3%, this means labor costs went up.
Coupled with yesterdays robust ISM, these are harbingers of inflation and higher interest rates. Bond prices slid with the 10 year yield rising to 4.14% from 4.08%. The gap between 5 & 10 year notes stands at 21 basis points.
No surprise here.... Altera the world's No. 2 maker of programmable semiconductors cut its profit-margin forecast. Gross margin, will be as much as 67 %, instead of the prior forecast of 69%, because of fewer sales of higher-priced chips. The company also cut its margin forecast for the year, Altera stock slid 6.5% on the news.
Today, the energy sector rebounded, oil still falling with bonds, while the dollar continues to rebound. From yesterday: "tomorrow options unwind starts, 5 yr note auction also, 10 yr note auction Thurs. Will dealer money headed into the bond market, force the stock market down again? Is this a head fake?"
It appears that some liquidity was removed from the market today, not much of an unwind as the tape was flat then up +35 DJIA. Tomorrow, more of the same or worse? Just when everyone thought go short on the indexes and long on oil, look whats happened since the start of September.
We take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong.
Support: DJIA 10250 ; SP500 1200 ; Nasdaq 2050; NDX 1535
European & Asian markets up. Dollar up vs. Yen/Euro , XAU down & gold up, XOI & oil down, commodities & bonds down. Contra action: gold & dollar up.
Yes, we are trotting out the little porker today, and he's a squealin loud.... today's Soohey Pig Award goes to the WSJ, for suggesting that steel prices may rise up to 20% in the coming months, due to Katrina/Big Easy based supply demand issues.
Prior to this blogs existence, after 9/11; I told friends that the patent corporate and government excuse for the next 4 years would be "because of the terrorists", in other words, instead of "blaming it on bad weather or the locusts or killer cicidas", blame it on the terrorists.
I fully expect "because of Katrina" or "post Nawleans" to supplant the terrorists as corporate America and the governments favourite excuse for incompetence and mismanagement, i.e. blame it on Mother Nature or the Big Easy is in for the next 4 years. Steel sector up 2.6% today on the rumours.
Effective September 1, the steel giants Nucor and US Steel hiked prices approximately 20% and are poised for additional profit in the hurricane's wake. Isn't there another name for this practice which results in windfall profits? i.e. PRICE GOUGING!!!! SOOHEY, PIG, PIG!!!
Yesterday, an up day with AUTHORITY DJIA +140, today, intially a split tape day with no follow through, then the markets finished in the green with OK internals. Utilities & transports suffered, crude oil fell 2.3% to close at $65.15.
Q2 productivity was revised to +1.8%; est +2.1% from a prior read of +2.2%; this means productivity fell. Meanwhile, labor costs were revised up to +2.5% from +1.3%, this means labor costs went up.
Coupled with yesterdays robust ISM, these are harbingers of inflation and higher interest rates. Bond prices slid with the 10 year yield rising to 4.14% from 4.08%. The gap between 5 & 10 year notes stands at 21 basis points.
No surprise here.... Altera the world's No. 2 maker of programmable semiconductors cut its profit-margin forecast. Gross margin, will be as much as 67 %, instead of the prior forecast of 69%, because of fewer sales of higher-priced chips. The company also cut its margin forecast for the year, Altera stock slid 6.5% on the news.
Today, the energy sector rebounded, oil still falling with bonds, while the dollar continues to rebound. From yesterday: "tomorrow options unwind starts, 5 yr note auction also, 10 yr note auction Thurs. Will dealer money headed into the bond market, force the stock market down again? Is this a head fake?"
It appears that some liquidity was removed from the market today, not much of an unwind as the tape was flat then up +35 DJIA. Tomorrow, more of the same or worse? Just when everyone thought go short on the indexes and long on oil, look whats happened since the start of September.
We take it day by day and keep our eyes peeled to the sky, because it could be a name brand that pancakes us. Just my opinion, I could be wrong.
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