Today's Key Market News - Data Retakes Focus
(Stocks in article: NYSE: GM, Nasdaq: MSFT, NYSE: LEN, NYSE: TGT, NYSE: LOW, NYSE: NRG, NYSE: GIS, NYSE: FDS, Nasdaq: CRXL, NYSE: F, Nasdaq: CSCO, Nasdaq: YHOO)
The euphoria of the Fed's big 50 basis point move is now well worn, and the market is refocused on miserable data flow. With concerns raised that the dollar and inflation could prevent a string of Fed cuts, and the memory of Greenspan's early 2001 ease, after which the market immediately rallied before sinking well below previous lows over the following 21 months, investor confidence is soft. See our thoughts on the dollar in this week's market-moving event planner, "The Greek's Week Ahead - The Dollar and the Shadow."
Today's report from the ICSC-UBS (see below) showed relative retail weakness, as consumer financial muscle atrophy sets in. The Conference Board's Consumer Confidence measure for September was reported at 10:00 AM EDT, and provided further insight into the consumer's state of affairs. The reported level of confidence, at 99.8, fell off a cliff versus expectations. This news should suck the wind out of the market, and raise new concerns about just how bad things could get within retail and the economy. Also at 10:00, August Existing Home Sales were reported downright disgusting, but about as expected. Home builder Lennar (NYSE: LEN) reported earnings today, showing more red ink than was expected. Home builders have sharply corrected as a result, and you profited if you acted on our advice from within the weekly article. Later this week, KB Homes (NYSE: KBH) will report as well, but Lennar's news has brought discount to all the builders today, after they rallied last week on the Fed move. We also told you in the weekly article that Lowes (NYSE: LOW) was likely to show the impact of housing on the home supplies retailer, and LOW and Target (NYSE: TGT) both provided reduced forecasts to the market today.
The UAW surprised many industry experts, and my personal contacts at Ford (NYSE: F) alike, this week with the strike move. Wall Street Greek views it as a brilliant strategic action, acting quickly and decisively before its auto governors could move in court to prevent its action. It seems the union still has some power in this country, and though I use to think unions were unnecessary here in the modern day, after my own personal beating by a foolish, ignorant and unappreciative higher up, we have changed our view. In little known Greek trivia, the Wall Street Greek's grandfather served as a forman at Bethlehem Steel, helping to forge the supports of America.
In an action we believe offering further evidence of opportunity in large cap technology companies involved in facilitating the Internet and computer usage, Microsoft (Nasdaq: MSFT) looks to be set to take a stake in Facebook. Recall, some of Wall Street Greek's favored names in the space include MSFT, Cisco Systems (Nasdaq: CSCO) and Yahoo! (Nasdaq: YHOO. Shortly, we will resume daily publication of "Today's Coffee," which we expect to evolve into a end of day market wrap up piece discussing the topics usual covered within the article: economic data, commodity markets, geopolitical factors and company specific issues.
The euphoria of the Fed's big 50 basis point move is now well worn, and the market is refocused on miserable data flow. With concerns raised that the dollar and inflation could prevent a string of Fed cuts, and the memory of Greenspan's early 2001 ease, after which the market immediately rallied before sinking well below previous lows over the following 21 months, investor confidence is soft. See our thoughts on the dollar in this week's market-moving event planner, "The Greek's Week Ahead - The Dollar and the Shadow."
Today's report from the ICSC-UBS (see below) showed relative retail weakness, as consumer financial muscle atrophy sets in. The Conference Board's Consumer Confidence measure for September was reported at 10:00 AM EDT, and provided further insight into the consumer's state of affairs. The reported level of confidence, at 99.8, fell off a cliff versus expectations. This news should suck the wind out of the market, and raise new concerns about just how bad things could get within retail and the economy. Also at 10:00, August Existing Home Sales were reported downright disgusting, but about as expected. Home builder Lennar (NYSE: LEN) reported earnings today, showing more red ink than was expected. Home builders have sharply corrected as a result, and you profited if you acted on our advice from within the weekly article. Later this week, KB Homes (NYSE: KBH) will report as well, but Lennar's news has brought discount to all the builders today, after they rallied last week on the Fed move. We also told you in the weekly article that Lowes (NYSE: LOW) was likely to show the impact of housing on the home supplies retailer, and LOW and Target (NYSE: TGT) both provided reduced forecasts to the market today.
The UAW surprised many industry experts, and my personal contacts at Ford (NYSE: F) alike, this week with the strike move. Wall Street Greek views it as a brilliant strategic action, acting quickly and decisively before its auto governors could move in court to prevent its action. It seems the union still has some power in this country, and though I use to think unions were unnecessary here in the modern day, after my own personal beating by a foolish, ignorant and unappreciative higher up, we have changed our view. In little known Greek trivia, the Wall Street Greek's grandfather served as a forman at Bethlehem Steel, helping to forge the supports of America.
In an action we believe offering further evidence of opportunity in large cap technology companies involved in facilitating the Internet and computer usage, Microsoft (Nasdaq: MSFT) looks to be set to take a stake in Facebook. Recall, some of Wall Street Greek's favored names in the space include MSFT, Cisco Systems (Nasdaq: CSCO) and Yahoo! (Nasdaq: YHOO. Shortly, we will resume daily publication of "Today's Coffee," which we expect to evolve into a end of day market wrap up piece discussing the topics usual covered within the article: economic data, commodity markets, geopolitical factors and company specific issues.
If you would like to advertise in the space below our articles, we are now offering tailored plans, including assistance in ad design. Contact us at WallStreetGreek @gmail.com to find out more. (disclosure)
posted by The Greek | 10:15 AM
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