Market Slows Down 16th July 2009

Thu, 16 Jul 2009 10:09:52 +0000

The market moved up yesterday in tandem. Over ninety percent of NYSE stocks moved up and end of day up volume was nine times down volume as well. It is not a good sign for any system to move synchronously, there has to be some chaotic elements for the markets to be healthy. (I will have to do some research on that.) That got Asian markets off to a good start that later petered out.

Hang Seng (Hong Kong): +0.57%

Australia: +0.49%

Nikkei 225 (Japan): +0.81%

Europe at mid-day:

FTSE 100 (UK): -0.08% at 10:15 AM

DAX (Germany): +0.12% at 11:15 PM

CAC 40 (France): +0.26% at 11:15 PM

European markets are flat.

SPY after hours: -0.5% at 5:21 AM

QQQQ after hours: -0.5% at 5:21 AM

Economic Indicators: Initial claims for unemployment benefits for last week, ending 11th July, are announced at 8:29 AM EST. This is expected to continue its decline to 552K, still a huge number. The peak reached at the beginning of April is the best signal that the bottom of the recession was reached some time in mid May. What has confused me is that the bottom of the recession is considered the “end of the recession” instead of the more logical “when economic activity comes back to where it was at the start of the recession”.

Before the market opens: JP Morgan Chase (JPM) announces earnings, not likely to emulate Goldman since it doesn’t earn as much from proprietary trading; Marriott International (MAR) a hotel chain; Harley-Davidson (HOG) earnings will highlight discretionary spending, hogs get better gas mileage than cars, so maybe there is a shift away from cars to motorcycles. Baxter International (BAX) medical equipment supplier is recession proof (?).

After the market closes: Google (GOOG) Q2 earnings will show the health of online advertising. IBM earnings are more weighted to services now.

Lots of Earnings 15 July 2009

Wed, 15 Jul 2009 11:16:31 +0000

Goldman Sachs (GS) higher than expected profits (though mostly trading profits which will not be repeated by other banks), Intel (IITC) predicted a better second half, and Johnson and Johnson (JNJ) good results raised Asia overnight. So Asia has had two up days.

Hang Seng (Hong Kong): +2.09%

Australia: +3.41%

Nikkei 225 (Japan): +0.88%

Europe at mid-day:

FTSE 100 (UK): +1.58% at 11:15 AM

DAX (Germany): +1.77% at 12:15 PM

CAC 40 (France): +1.88% at 12:15 PM

Europe up nicely, perhaps on news of 14 month high in new car registrations.

SPY after hours: 1.0% at 6:21 AM

QQQQ after hours: 1.7%

Economic Indicators: June Consumer Price Index (CPI) comes out at 8:29 AM EST. CPI is half of a percent lower than last year.

The Empire Manufacturing report for June comes out at 8:29 AM too. It shows manufacturing in New York State and is expected to decline.

Industrial production is expected to show a June drop of 0.6% after Mya’s drop of 1.1% when announced at 9:14 AM EST. Capacity utilization is also expected to decline to 67.9% from 68.3%.

9:00 AM Abbott Labs (ABT), drug company, has Q2 earnings call.

9:15 AM Yum! Brands, Inc. (YUM), fast food restaurants, has Q2 earnings conference call.

10:00 AM Gannett (GCI), newspaper publisher, has Q2 earnings call.

11:50 AM Best Buy Co., Inc. (BBY), electronics retailer has a webcast from the Oppenheimer & Co. Consumer, Gaming, Lodging & Leisure Conference.

1:30 PM KLA-Tencor (KLAC), designs and manufactures equipment for the semiconductor industry, briefs analysts.

Trade Naked » Q2 Earnings

Market Slows Down 16th July 2009

Lots of Earnings 15 July 2009