Record Highs Tuesday Couldn't Last All Week, Dow Dips 80 on Friday
Strong Dollar Trends Dominate The Week.
On the other hand, a strong US Dollar means cheaper imports, which is good for consumers and overseas producers alike. Sony (SNE) was up 3.89% to 28.32 points this week. Samsung, which is traded on the South Korean market, is trending toward yearlong highs and has posted 9% gains YTD. For companies who import most of their products and sell them to the American market, a strong US Dollar can mean big profits.
What's Happening To The Airlines? Most people would think that falling fuel prices would mean big profits for the airlines. Unfortunately, it's more complicated than that. Airlines stockpile fuel in advance, and consumer spending has more to do with their profits that the price of gas. In general, airlines were hit especially hard during the recession, and some of them are holding too much debt. American Airlines (AAL) is down over 10% this year, and Delta (DAL) is down 9.5%. Virgin America (VA) is down nearly 20% on the year. For a lot of people who were short on income, flying became a luxury, and unfortunately it will take more than falling oil prices to reverse that trend.
Insiders Busted Selling Wrestling Stock. An executive producer at World Wrestling Entertainment (WWE), the most popular venue for televised wrestling, was caught selling off over 45,000 shares before the stock price dipped. The stock was down almost 2% today after a shakeup with the board of directors. WWE closed at 16.44 per share, and has been flat so far YTD.
Gold And The Dead Cat Bounce. The price of gold had a small bounce this week, gaining back almost $20 in value. It's down 5.86% on the month, and a full 8.86% from February of last year, when gold cost $1,383 per troy ounce. Despite this short recovery, it's a good bet that gold will continue to sink.
Net Neutrality Ruling Pushes Cable And Cell Providers. The FCC's ruling that the internet is a utility is sure to change a few things, and the companies that will feel the change first are ISPs. Over the years, that's come to mean AT&T (T) and Verizon (VZ) instead of America Online (RIP) or even Comcast (CMCSA). Since the announcement was made Thusday, AT&T and Comcast rose 1.5%, Verizon (VZ) was up 1%. Time Warner (TWC) has been steady and Charter shot up by 4.44 points on Wednesday, then held steady for the rest of the week.
Demand For Cocoa Increasing. After a monthlong lull which saw falling prices and increased supply, the demand for cocoa is on the rise. The price of cocoa is up 12% so far this month, and is set to match a previous ceiling within the next few weeks if trends continue. March prices closed the week at $3,014 per metric ton. The price is expected to recover, thanks in part to a stronger dollar, and could match record highs of $3,336 per tonne by Christmas of 2015.
Published on Feb 27, 2015By Aaron Phillips