This Week's Slow Motion Market Rally

Markets made slow but steady progress over the course of the week. Although it's hard to call this an official market rally, the fact is that the Dow ended the week over 18,000 points and all three major markets posted gains -- however small -- 4 days out of 5. The Dow gained a solid 302.15 points on the week, closing at 18,057.65. The NASDAQ was up 140.04 over 5 days, and the S&P 500 gained 37.19 points.

In overseas trading this week, European markets rose slightly while Asia boomed.
London's FTSE grew by 3.75% this week, Germany's DAX was up 3.40%. The French CAC gained 3.28%. In Asia, however, Japan's Nikkei grew by 2.43% and Hong Kong's Hang Seng shot up 8%.

GE Pulls The Trigger On $23 Billion Asset Sale.  General Electric (GE) is set to slim down by selling off assets and services that are no longer core to its business model, according to recent reports. There has been Wall Street chatter about the move for weeks, but it seems as though General Electric has finally lined up a few buyers to make the deal a reality.

Both the Blackstone Group (BX) and Wells Fargo (WFC) are interested in acquiring the assets, with Blackstone mainly interested in real estate holdings while Wells Fargo picks up on General Electric's lending division.

The 5 Biggest Penny Movers Of The Week.  Micro-cap stocks had a mixed week just like the rest of the market, but 2 of our 5 picks managed to make over 140% in pure profit. The penny stocks that grew the fastest this week were concentrated in the energy, tech, communications and marketing segments.

Shares of Postrock Energy (PSTR) lead our top 5, with 180% gains this week to close at $5.18. Voltari (VLTC) a marketing firm, saw share prices shoot up 140% over 5 days, closing at $6.36, after news broke that billionaire Carl Icahn was increasing his stake in the firm. Kingstone Wireless (KONE) posted record profits this week, and its stock price increased 72% to $5.69. Both Inuvo (INUV) and Airmedia Group (AMCN) gained 49% to close at $2.85 and $3.01 respectively.

Hong Kong's Market Makes A Full Recovery.  We touched on Hong Kong's massive growth this week, but it's worth exploring in-depth. The thing to keep in mind about the Hang Seng market is that it is the de facto home for Chinese companies who want to go public. Although there is a separate Shanghai index, most investors in China keep a close eye on the performance of the Hang Seng. As China continues to slowly modernize, it's likely that mainland Chinese companies will remove themselves from the Hong Kong exchange, but in the meantime it's one of the best indicators for the Chinese economy that we have.

This market -- especially in contrast to Japan's steady Nikkei -- has a reputation for volatility. There have been big swings up and down, and right now the market is on a massive upswing. The market has put on 8% in 5 days and gained 2,400 points this week alone. That's been good news for investors like Goldman Sachs (GS) who are looking for a chunk of the Chinese market, and it should also be good for American exports to China and Hong Kong going forward.

Ocular Therapeutics Is This Week's Worst Performer.  It's disappointing for any company when a new product doesn't pan out, but in the case of the pharmaceutical industry, failing out of a trial can be a real killer. Ocular Therapeutics (OCUL), which is developing treatments to cure vision disorders, had to put a stop to Phase III clinical trials on one of their new medications, dubbed OTX-DP after it failed to clear one of the two primary hurdles in the trial. Ocular Therapeutics stock lost 34% of its value this week, falling from over $40 to $26.99 per share by the end of the day Friday.
Published on Apr 10, 2015
By Aaron Phillips
Aaron Phillips is a financial researcher and journalist based out of Michigan. He regularly writes the IG Daily and IG Weekly columns.

Copyrighted 2020. Content published with author's permission.

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