Wednesday: Market Concerns Appeased, Stocks Continue Run
Investors had two big concerns heading into this week, the Federal Reserve’s FOMC Policy Statement due this afternoon and the second quarter GDP report published this morning. We have gotten through one data point in fantastic fashion, as Q2 GDP growth managed to outpace expectations. We are holding our breath for the FOMC, but nobody expects any tapering to begin before September. If it does, it would send a shockwave through the market today and would be counterproductive in its impact to the economy. For more in-depth analysis and research visit our financial markets blog.
Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.
Stocks are broadly higher thanks to decent economic data and the high profile earnings wins of the season.
Economic Events
GDP was not the only positive data point today. ADP’s estimate for private employment growth in July proved higher than economists’ expectations. Keep in mind that this is just an estimate, and will be replaced by the real data when the government reports it in two days. Mortgage activity continued to dissipate, given higher rates and the summer lull as we approach back-to-school season. The Chicago PMI showed a slight uptick for manufacturing in the Midwest, but not enough to really get behind with some money.
Overseas Markets
I have one important question: Why is Vladimir Putin in Iran today and what is he up to?
Commodity Markets (10:21 AM ET)
The broad decline in commodity prices is a tell-tale about the dollar today. It spiked against all currencies this morning when the GDP result was published. The dollar has since moderated off its highs.
Corporate Events
There are a slew of earnings reports due today, as we continue to find ourselves in the heart of the EPS season. You will note several hospitality companies are reporting today, including Marriott and Hyatt. Perhaps we can glean more insight on the health of the global economy based on bookings in these global hotel chains. I also noted several biotechs and shipping companies reporting earnings today along with many other companies. Find the highlighted list below, but not the complete list. Further down, you’ll see the day’s most active stocks, headed by CardioNet and Meru Networks.
Other Reports for Your Review:
Consider Annaly Capital (NYSE: NLY) Here for 17% to 33% Capital Appreciation
Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.
Our founder earned clients a 23% average annual return over five years as a stock analyst on Wall Street. "The Greek" has written for institutional newsletters, Businessweek, Real Money, Seeking Alpha and others, while also appearing across TV and radio. While writing for Wall Street Greek, Mr. Kaminis presciently warned of the financial crisis.
Economic News
Market ETF
|
July 31, 2013
|
Year-to-Date
|
SPDR S&P 500 (SPY)
|
+0.6%
|
+19.1%
|
SPDR Dow Jones (DIA)
|
+0.6%
|
+19.4%
|
PowerShares (QQQ)
|
+0.4%
|
+16.5%
|
Stocks are broadly higher thanks to decent economic data and the high profile earnings wins of the season.
Economic Events
ECONOMIC REPORT SCHEDULE
|
|
||
Economic Data Point
|
Prior Period
|
Expected
|
Actual
|
WEDNESDAY
|
|
|
|
+1.1% (R)
|
+1.1%
|
+1.7%
|
|
+198K (R)
|
+179K
|
+200K
|
|
-1.2%
|
NA
|
-3.7%
|
|
51.6
|
54.0
|
52.3
|
|
0% to 0.25%
|
0% to 0.25%
|
|
|
– Crude Oil Inv.
|
-2.8 M
|
NA
|
+0.4 M
|
Farm Prices
|
NA
|
NA
|
|
GDP was not the only positive data point today. ADP’s estimate for private employment growth in July proved higher than economists’ expectations. Keep in mind that this is just an estimate, and will be replaced by the real data when the government reports it in two days. Mortgage activity continued to dissipate, given higher rates and the summer lull as we approach back-to-school season. The Chicago PMI showed a slight uptick for manufacturing in the Midwest, but not enough to really get behind with some money.
Overseas Markets
EUROPE
|
10:42 AM
|
ASIA/PACIFIC
|
CLOSE
|
EURO STOXX 50
|
+0.5%
|
NIKKEI 225
|
-1.5%
|
German DAX
|
+0.2%
|
Hang Seng
|
-0.3%
|
CAC 40
|
+0.5%
|
S&P/ASX 200
|
+0.1%
|
FTSE 100
|
+1.3%
|
Korean KOSPI
|
-0.2%
|
Athens ASE
|
+2.0%
|
BSE India SENSEX
|
-0.0%
|
I have one important question: Why is Vladimir Putin in Iran today and what is he up to?
Commodity Markets (10:21 AM ET)
WTI Crude
|
+0.5%
|
Brent Crude
|
-0.7%
|
NYMEX Natural Gas
|
-0.1%
|
RBOB Gasoline
|
-0.7%
|
Gold Spot
|
-0.7%
|
Silver Spot
|
-0.4%
|
COMEX Copper
|
+1.0%
|
CBOT Corn
|
-0.2%
|
CBOT Wheat
|
+0.5%
|
CBOT Soybeans
|
+0.4%
|
ICE Cocoa
|
-0.3%
|
ICE Sugar
|
-0.8%
|
ICE Orange Juice Conc.
|
-0.2%
|
CME Lumber
|
+0.3%
|
CME Live Cattle
|
-0.0%
|
The broad decline in commodity prices is a tell-tale about the dollar today. It spiked against all currencies this morning when the GDP result was published. The dollar has since moderated off its highs.
Corporate Events
There are a slew of earnings reports due today, as we continue to find ourselves in the heart of the EPS season. You will note several hospitality companies are reporting today, including Marriott and Hyatt. Perhaps we can glean more insight on the health of the global economy based on bookings in these global hotel chains. I also noted several biotechs and shipping companies reporting earnings today along with many other companies. Find the highlighted list below, but not the complete list. Further down, you’ll see the day’s most active stocks, headed by CardioNet and Meru Networks.
REPORTING EARNINGS
|
|
Company
|
Ticker
|
WEDNESDAY
|
|
Invesco
|
NYSE: IVZ
|
Southern
|
NYSE: SO
|
Ally Financial
|
OTC: GMSPZ.PK
|
Phillips 66
|
NYSE: PSX
|
CEVA
|
Nasdaq: CEVA
|
Energen
|
NYSE: EGN
|
Booz Allen Hamilton
|
NYSE: BAH
|
Hyatt Hotels
|
NYSE: H
|
Hess
|
NYSE: HES
|
Huntsman
|
NYSE: HUN
|
MasterCard
|
NYSE: MA
|
Speedway Motorsports
|
NYSE: TRK
|
Jones Group
|
NYSE: JNY
|
LPL Financial
|
Nasdaq: LPLA
|
Burger King Worldwide
|
NYSE: BKW
|
Hospira
|
NYSE: HSP
|
Marriott International
|
NYSE: MAR
|
Hudson City Bancorp
|
Nasdaq: HCBK
|
Level 3 Communications
|
Nasdaq: LVLT
|
Comcast
|
Nasdaq: CMCSA
|
AllianceBernstein
|
NYSE: AB
|
Hercules Offshore
|
Nasdaq: HERO
|
PG&E
|
NYSE: PCG
|
AGCO
|
Nasdaq: AGCO
|
Vanda Pharmaceuticals
|
Nasdaq: VNDA
|
Cadence Pharmaceuticals
|
Nasdaq: CADX
|
Eagle Rock Energy Partners
|
Nasdaq: EROC
|
Pioneer Natural Resources
|
NYSE: PXD
|
Whole Foods Market
|
NYSE: WFM
|
PHH Corp.
|
NYSE: PHH
|
Allstate
|
NYSE: ALL
|
Seattle Genetics
|
Nasdaq: SGEN
|
Metlife
|
NYSE: MET
|
Hornbeck Offshore
|
NYSE: HOS
|
Lam Research
|
Nasdaq: LCRX
|
Sturm Ruger
|
NYSE: RGR
|
DreamWorks
|
NYSE: DWA
|
Cabot
|
NYSE: CBT
|
Intrepid Potash
|
NYSE: IPI
|
Yelp
|
Nasdaq: YELP
|
WebMD
|
Nasdaq: WBMD
|
Williams Cos.
|
NYSE: WMB
|
CBS
|
NYSE: CBS
|
Cell Therapeutics
|
Nasdaq: CTIC
|
Cardtronics
|
Nasdaq: CATM
|
Genomic Health
|
Nasdaq: GHDX
|
International Shipholding
|
NYSE: ISH
|
Atmel
|
Nasdaq: ATML
|
Genco Shipping
|
NYSE: GNK
|
Nanophase Technologies
|
Nasdaq: NANX
|
Cohu
|
Nasdaq: COHU
|
Trulia
|
Nasdaq: TRLA
|
Boston Beer
|
NYSE: SAM
|
SunPower
|
Nasdaq: SPWR
|
BroadVision
|
Nasdaq: BVSN
|
MOST ACTIVE STOCKS
|
|
BIGGEST GAINERS
|
% Gain
|
CardioNet (Nasdaq: BEAT)
|
+28%
|
Questcor (Nasdaq: QCOR)
|
+25%
|
Edgewater Technology (Nasdaq: EDGW)
|
+21%
|
eHealth (Nasdaq: EHTH)
|
+20%
|
Marketo (Nasdaq: MKTO)
|
+19%
|
China Recycling Energy (Nasdaq: CREG)
|
+15%
|
Trius Therapeutics (Nasdaq: TSRX)
|
+16%
|
Inovio Pharmaceuticals (NYSE: INO)
|
+13%
|
MAKO Surgical (Nasdaq: MAKO)
|
+16%
|
MagnaChip Semiconductor (NYSE: MX)
|
+16%
|
BIGGEST LOSERS
|
% Drop
|
Meru Networks (Nasdaq: MERU)
|
-22%
|
Jive Software (Nasdaq: JIVE)
|
-20%
|
Big 5 Sporting Goods (Nasdaq: BGFV)
|
-18%
|
TOP Ships (Nasdaq: TOPS)
|
-4%
|
Vitran (Nasdaq: VTNC)
|
-18%
|
Hudson Technologies (Nasdaq: HDSN)
|
-13%
|
Riverbed Technology (Nasdaq: RVBD)
|
-15%
|
InfuSystems (Nasdaq: INFU)
|
-12%
|
Repros Therapeutics (Nasdaq: RPRXW)
|
-14%
|
Ignite Restaurant (NYSE: IRG)
|
-13%
|
Other Reports for Your Review:
Consider Annaly Capital (NYSE: NLY) Here for 17% to 33% Capital Appreciation
Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.
Labels: Market-Outlook, Market-Outlook-2013-Q3
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