Daily Market Commentary

Fed Cuts Bond Purchases by $10B; U.S. Economy Grew 4% in Q2

July 30th, 2014

Stocks end mixed after the Fed announced that they will cut their monthly stimulus spending by an additional $10 billion. The Federal Reserve cited an improving economy and labor market as reasons to continue cutting the stimulus. The U.S. economy grew 4% in Q2, rebounding from the harsh winter weather in Q1. The U.S. posted
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Global Tension Weighs Heavily on Investors; UPS Misses Wall Street’s Expectations

July 29th, 2014

Stocks close the day slightly down as global tension continues to take a toll on the market. Investors fear that the European Union’s sanctions against Russia for their involvement in the downed Malaysia Airline Profit will have a large global economic impact. Profit reports continue to be announced this week. More than half of the
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S&P 500 Posted Second Smallest Closing Gain; New Home Sales Down 8.1%

July 28th, 2014

The S&P 500 and Dow Jones ended the day slightly up, while Nasdaq was down 0.11%. Investors were trying to balance a reported decline in sales of new homes in June with the news of multiple acquisitions. Dollar Tree Inc. (DLTR) is going to take over Family Dollar Stores (FDO), while Zillow is acquiring Trulia,
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El Pollo Loco Up 50% During IPO; Dow Falls 120 Points

July 25th, 2014

The S&P 500 retreated from its record breaking day yesterday and ended the day down 9 points. The Dow Jones fell over 120 points and Nasdaq also ended the day in the red. El Pollo Loco (LOCO) debuted its IPO today with its shares rising 50% during its first day. The company set its initial
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IMF Cuts Global GDP Growth Forecast; Walmart’s U.S. CEO Resigns

July 24th, 2014

The S&P 500 continues its record breaking streak as it closed the day with another record high. Just a day after the International Monetary Fund cut its forecast for the U.S. economy, it cuts its global GDP growth forecast. The IMF cut the growth forecast from 3.4% to 3.6%, they do however expect global growth
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IMF Cuts U.S. Growth Forecast; S&P 500 Hits Record High

July 23rd, 2014

The S&P 500 closed at a record high today as it continues to near 2000. The International Monetary Fund cut its forecast for U.S. economic growth for 2014 due to its struggle during the first quarter. The IMF projects that U.S. growth will be just 1.7% this year, down from 2%.  Apple (AAPL) has yet
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Herbalife’s Shares Up After Attack From Ackerman; S&P 500 Hits Intraday Record

July 22nd, 2014

Stocks end the day higher, with the S&P 500 hitting an intraday record. Companies are continuing to release their second quarter earnings statement this week. Nearly a fifth of the companies in the S&P 500 have reported their Q2 earnings statements so far, with 66% of them beating analysts’ estimates. Chipotle (CMG) just blew away
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Investors to Focus on Corporate Earnings; Global Unrest Drives Stocks Down

July 21st, 2014

Stocks fell sharply during the early trading session today, but recovered slightly to end the day barely down. The global uncertainty, particularly in Ukraine and Gaza, is weighing heavily over investors. Many large U.S. companies will be releasing their Q2 corporate earnings reports tomorrow and investors have high hopes. These companies include Apple (AAPL), Microsoft
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GE Matches Earnings Estimates; 401(k)s Rise to New Highs

July 18th, 2014

Stocks bounce back, seemingly ignoring all of the geopolitical tension that has been occurring over the past couple of days. The bull market is sending 401(k) retirement plans soaring to record highs. The average 401(K) balance rose 12.9% to $91,000, with 77% of the growth attributed to the stock market. If the 21st Century Fox
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Microsoft to Layoff 18,000; Gold Prices Up 1.5%

July 17th, 2014

The Malaysia Air crash set the Dow back 160 points. Nasdaq and the S&P 500 also ended the day in the red. The rumors that have been flying about a large number of layoffs at Microsoft (MSFT) have been confirmed today. Microsoft will layoff approximately 18,000 employees within the next year, the majority of these
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Fox Looking to Acquire TWC; Apple & IBM Announce Partnership

July 16th, 2014

The Dow Jones ends at another record close, driven higher by the continual growth in China and heated merger discussions. It appears that Rupert Murdoch, the chairman and CEO of 21st Century Fox, will continue to push to acquire Time Warner (TWC). Time Warner’s shares even ended the day up 17%, despite the fact that
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Yellen Believes Many Stocks are Overvalued; Microsoft Rumored to Make a Large Number of Layoffs

July 15th, 2014

Stocks end mixed after the chair of the Federal Reserve, Janet Yellen, said that many stocks and assets are currently overvalued. Yellen also told Congress today that the Fed intends to continue to provide support to the U.S. economy since the economic recovery is still not complete. Rumors have been flying that Microsoft (MSFT) will
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Alibaba Files for U.S. IPO; VW to Add 2,000 Jobs in the U.S.

July 14th, 2014

The Dow Jones once again closes the day above 17,000, but fell slightly from its intraday record. It was announced today that China’s Alibaba filed for an IPO in the United States, this IPO may very well be the biggest tech IPO in history. Yahoo (YHOO) is set to make a lot of money off
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Amazon Seeks FAA Approval to Test Drones (VRTX, PETM)

July 11th, 2014

(As of 3:45pm) All U.S. stocks are in the green during afternoon trading. Amazon (AMZN) is seeking FAA approval to test 50-mph drones. Amazon believes that Amazon Prime Air will be able to deliver packages to customers in under 30 minutes and hopes to make this prime benefit available to customers worldwide. Old Navy is
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Financial Crisis in Europe Driving Dow Down; FTC Sues Amazon

July 10th, 2014

The possible Portuguese financial crisis may be spreading across the rest of Europe, thus driving the Dow down. If the financial crisis were to spread it would negatively impact all of the work that the the European Central Bank has been doing in recent years to stabilize the European economy. The Federal Trade Commission filed
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Fed Leaning Towards Ending Stimulus in October; Stocks Rally

July 9th, 2014

After ending down for two straight days, U.S. stocks finally rebounded and ended the day in the green. The Fed recently released the minutes from its June 17-18 meeting. The minutes revealed that the Federal Reserve is leaning towards ending economic stimulus in October, showing that the Fed is very confident in the future of
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Gas Prices in 2014 May Have Peaked; Alcoa Tops Earning Expectations by 50%

July 8th, 2014

Stocks further retreated today and the Dow Jones even closed the day below 17,000. U.S. consumers paid the highest gas prices for Fourth of July since 2008, but it looks like gas prices for the year may have peaked. Oil is trading down 19 cents today to $103.34 a barrel, experiencing its eight-straight daily drop.
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USEC Stock Experiences Volatile Week; Stocks Retreat After Holiday Weekend

July 7th, 2014

Stocks retreat from the record highs set before the holiday weekend. Today the chief of the International Monetary Fund predicted that the global economy will improve and grow over the next year and a half, just not at the speed previously expected. As the bull market continues, investors are expecting U.S. companies to deliver sizable
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Positive Jobs Report Pushes Dow Above 17,000

July 3rd, 2014

After much anticipation the Dow Jones finally closed the day above 17,000. A couple of stocks led the Dow to reaching this milestone, Caterpillar (CAT) is up 22.3% in 2014, Intel (INTC) is up 20.0%, and Merck (MRK) is up 18.3%, just to name a few. June’s job report was released today and showed that
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281,000 Private-Sector Jobs Added; Fed’s Top Priority is Boosting U.S. Economy

July 2nd, 2014

The Dow Jones and S&P 500 record closes continued today, but the Dow still remains just shy of 17,000. Private businesses added more than 281,000 jobs last month, significantly higher than the estimated 205,000 additions. June’s monthly job gains was the highest reported since November 2012. Janet Yellen spoke today regarding the “spillover” effect that
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