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Daily Market Commentary

Manufacturing Index Fell Slightly in June; Stocks Off to a Strong Q3 Start

July 1st, 2014

All three U.S. stock indices started off the second half of the year in the green, with the S&P 500 and Nasdaq closing at record highs. Manufacturing index unexpectedly fell last month from 55.4 to 55.3, while experts expecting an increase to 55.8. On the bright side manufacturing expanded for the 13th straight month, but
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Stocks Post Strong Q2 Gains; GM Recalls 8.4 Million Vehicles

June 30th, 2014

Stocks end Q2 mixed but overall posted strong gains throughout the second quarter. General Motors (GM) announced a recall of nearly 8.4 million vehicles today, mostly for faulty ignition switches. This year so far GM has recalled over 27 million vehicles, which is quickly approaching the 30.8 million industry-wide recall record that was set in
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U.S. Stocks Rally; Michaels (MIK) Goes Public

June 27th, 2014

Following earlier reports of a slowing economic growth and consumer spending, U.S. stocks stalled but ended higher on Friday. Michaels (MIK) went public today after the company had been taken private by Bain and Blackstone (BX) back in 2006. However, this IPO had a modest day and shares largely traded flat. Nike (NKE) was one of
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Stocks Dip on Fed Comments; Consumer Spending Weak for May (NKE, ZU)

June 26th, 2014

Wall Street ended on Thursday slightly lower after several economic and corporate reports disappointed investors. Despite the drop for the S&P, this is only the third loss for the index in 10 trading days. The government announced that unemployment claims dropped last week, a good sign for the economy, but also announced that consumer spending
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U.S. Economy Down In First Quarter; Big Day In Supreme Court

June 25th, 2014

According to a report released by the Commerce Department on Wednesday, GDP fell at a 2.9% annual rate instead of a more gradual pace of 1% that was reported last month. This is the worst reading since the same three months in 2009. However, analysts believe that this setback is temporary as the consumer confidence
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Consumer Confidence Hits 6-Year High, Climate Change Poses Economic Risk

June 24th, 2014

Stocks continue to back away from their record highs that they hit last Friday. Consumer confidence continues to rise and hit a 6-year high in June. The main factors that led to an increased consumer confidence level were rising stock prices and continual job growth. A bipartisan report was released today suggesting that future climate
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Existing Home Sales Post Best Gain Since 2011; Stocks Retreat From Record Highs

June 23rd, 2014

The Dow and S&P 500 retreat from record highs, while Nasdaq ends the day slightly up. Existing home sales rose 4.9% in May, for the second straight month. The monthly gain is the highest gain since August 2011. A massive combined airbag recall of nearly 3 million vehicles worldwide was announced by Honda (HMC), Mazda,
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Housing Recovery Faltering; Nasdaq Closes at 14-Year High

June 20th, 2014

The record finishes continue as the Dow and S&P 500 both end at all-time highs. Nasdaq also finished in the green at a 14-year high. The number of available jobs increased in most states during May thus the jobless rate fell in 20 states last month. Also, jobless rates were below the national average of
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Record Finishes Continue for S&P 500; American Apparel’s CEO Ousted

June 19th, 2014

The S&P 500 hit a record close for the second straight day. Additional earnings reports were released today, revealing mixed results. Rite Aid (RAD), Coach (COH), and Pier One’s (PIR) shares all fell after they reported disappointing earning forecasts. Kroger’s (KR) shares jumped up 5% after the grocery store reported higher than expected first-quarter earnings.
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Fed Cuts Stimulus by Another $10 Billion, Reduces U.S. Economic Growth Forecast

June 18th, 2014

The S&P 500 closed at a record high today, nearly reaching 2,000, while Nasdaq closed at a 2014 high. The Dow Jones also ended the day in the green. The Federal Reserve met today and reduced its forecast for U.S. economic growth in 2014. The Fed still does believe that the unemployment rate will continue
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Consumer Prices Rose as the Housing Market Fell in May

June 17th, 2014

Stocks close the day higher for the third straight day. The housing market fell more than expected in May. Housing starts fell 6.5% month over month in May, which was worse that the expected fall of 3.9% month over month. Consumer prices also rose more that expected last month. The consumer price index jumped up
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IMF Pulls Back U.S. Growth Forecast in 2014; Alibaba Closer to IPO Debut

June 16th, 2014

Stocks end the day barely up for the second straight day. The dismal first quarter performance forced the International Monetary Fund to pull back its forecast for U.S. growth in 2014. The main culprit of poor performance in Q1 was the harsh winter weather, which shrunk the annual growth rate to around 1%. Alibaba is
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Priceline to Purchase OpenTable; Justice Department Prepares to Sue Citigroup

June 13th, 2014

After ending down for most of the week, all three main indices in the U.S. ended the day in the green. The Justice Department is preparing to sue Citigroup (C) over the bank’s sale of mortgage-backed securities. The Justice Department could file the lawsuit as early as next week. P.F. Chang’s is the most recent
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Oil Prices Hit 8-Month High; Caterpillar’s Shares Up 20% in 2014

June 12th, 2014

Stocks continued to fall deeper in the red today, mainly due to escalating violence in Iraq and mixed economic signals. It is also likely that gas prices will quickly rise due to the tension in Iraq; gas was pushed to an eight-month high today. One of the most important stocks in the Dow is Caterpillar
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The World Bank Lowers Global Economic Outlook; Dow Falls 100 Points

June 11th, 2014

Stocks retreat from recent record highs today, with the Dow falling over 100 points. The stocks slid today mainly due to the World Bank lowering its global economic outlook. The World Bank cites the harsh winter weather in the U.S., the continual unrest in Ukraine, and the economic “rebalancing” in China, among other issues, for
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Radio Shack’s Earnings Disappoint; Labor Market Improving

June 10th, 2014

Stocks barely changed today, with the exception of the Dow who ended the day with another record close. Radio Shack’s (RSH) woes continue. Just a couple of months ago the retailer announced that they would be closing around 1,100 stores. After their disappointing earnings report that was released today it seems like the technology retailer
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Dow Closes in on 17,000; Tyson to Purchase Hillshire Brands

June 9th, 2014

All three main indices in the U.S. finished up today, with the Dow approaching 17,000. After weeks of fighting for Hillshire Brands (HSH) it seems like Tyson’s (TSN) has won with a bid of $8.5 billion. Pilgrim’s Pride (PPC) withdrew its previous bid for Hillshire on Monday. Family Dollar (FDO) announced approval for a “poison
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217,000 Jobs Added in May; Uber Valued at $17 Billion

June 6th, 2014

May’s job report was released today showing that more jobs were created than expected. The U.S. added 217,000 jobs last month while the unemployment rate remained constant at 6.3%. The jobs reports pushed stocks even higher, with the S&P 500 and Dow Jones closing at record highs and Nasdaq closing at its highest level in
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U.S. Household Wealth Hits Record High in Q1; GM Fires 15 in Response to Pending Investigation

June 5th, 2014

Stocks continued to gain throughout the day resulting with the Dow and S&P 500 closing at record highs. General Motors (GM) has taken action in response to the continual investigation into the faulty ignition switches that caused at least 13 deaths, firing 15 employees and disciplining 5 more. At least half of the employees who
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Private Sector Adds 179k Jobs in May; U.S. Economy Grew in all 12 Bank Districts

June 4th, 2014

U.S. stocks rallied after yesterday’s loss with the S&P 500 continuing to gain and closing at yet another record high. ADP (ADP) announced today that the private sector added only 179,000 jobs in May, failing to meet expectations. Many economists were predicting that there would be approximately 215,000 jobs added by the private sector in
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