Daily Market Commentary

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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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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