Market Observations 08/18/06
In our top story tonight, the leader of al-Qaida in Iraq, Abu Musab al-Zarqawi, is STILL dead and someone else has taken his place.
Aug UMich Consumer Sentiment 78.7 vs prior 84.7 Full Report
Inside the number: The index peaked @ 96.5 in July 05 and has been in decline since Dec 05 @ 91.5.
Higher gas prices, utility bills, stagflation and housing market fears are the impetus. Consumer assessment of buying conditions for homes at the lowest level since the 1990 recession.
On the same page? or More raises to come? Yesterday, "the dollar will hold its own as all currencies are devalued." Today, China's Central Bank raised its benchmark lending rate 27 bps to 6.12%, the 2nd raise in 5 months.
With the PBOC, BOE, BOJ & ECB potentially continuing to raise rates as the Fed pauses and perhaps due to an economic slowing, lowers later this year, the dollar could come under serious pressure.
As tech and the broader market had its 5th straight UP session, energy & utilities ended a 4 day consolidation. The largest point weekly point gain for the NAZ since May 02.
Traders Almanac sez August is the worst month...This week: DJIA +2.3%; SP500 +2.5%; NAZ +4.9%. MTD, DJIA +1.3%, SP500 +1.6%, NAZ+3.2%.
What a difference a day makes.... This week tech +6% with multiple upgrades from the brokers, semis +10%. Yesterday, chipster AMD upgraded. Today, Marvell giving lowered guidance and Prudential downgrading tech from favorable to neutral?
More smoke and mirrors? Stock buybacks: Microsoft $16B +4.2%; HP $6B +1% helping to artifically support tech valuations. Today, Dell -2.8% on -51% Q2 profits and an SEC audit.
Options expiration is over and the weak hands have been shaken out. Mon & Tue for profit taking?? or another run up headed for RUT 740? Lets see.
Keep it tween da ditches, 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, this is The Nattering Naybob and your NOT!!!
Aug UMich Consumer Sentiment 78.7 vs prior 84.7 Full Report
Inside the number: The index peaked @ 96.5 in July 05 and has been in decline since Dec 05 @ 91.5.
Higher gas prices, utility bills, stagflation and housing market fears are the impetus. Consumer assessment of buying conditions for homes at the lowest level since the 1990 recession.
On the same page? or More raises to come? Yesterday, "the dollar will hold its own as all currencies are devalued." Today, China's Central Bank raised its benchmark lending rate 27 bps to 6.12%, the 2nd raise in 5 months.
With the PBOC, BOE, BOJ & ECB potentially continuing to raise rates as the Fed pauses and perhaps due to an economic slowing, lowers later this year, the dollar could come under serious pressure.
As tech and the broader market had its 5th straight UP session, energy & utilities ended a 4 day consolidation. The largest point weekly point gain for the NAZ since May 02.
Traders Almanac sez August is the worst month...This week: DJIA +2.3%; SP500 +2.5%; NAZ +4.9%. MTD, DJIA +1.3%, SP500 +1.6%, NAZ+3.2%.
What a difference a day makes.... This week tech +6% with multiple upgrades from the brokers, semis +10%. Yesterday, chipster AMD upgraded. Today, Marvell giving lowered guidance and Prudential downgrading tech from favorable to neutral?
More smoke and mirrors? Stock buybacks: Microsoft $16B +4.2%; HP $6B +1% helping to artifically support tech valuations. Today, Dell -2.8% on -51% Q2 profits and an SEC audit.
Options expiration is over and the weak hands have been shaken out. Mon & Tue for profit taking?? or another run up headed for RUT 740? Lets see.
Keep it tween da ditches, 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, this is The Nattering Naybob and your NOT!!!
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