Afternoon Note
The market is off a bit today, pausing to reflect on several stronger than anticipated economic releases. Strength continues in oil and related stocks as the OPEC deal is parsed for details. The bounce in oil continued today with crude up about 1.5% at midday. There is plenty of healthy skepticism on the longevity of and compliance with the OPEC deal.
The third estimate of the second quarter GDP came in at 1.4%, a bit ahead of estimates. The second reading showed an increase of 1.1%. General growth remained the same, quite sluggish. The growth was mostly sustained through strong consumer spending, exports, and nonresidential investment. However, there was an offset in a decrease in contributions from residential fixed investment, private inventory investment and government spending.
Weekly jobless claims were slightly lower than anticipated. Readings came in at 254,000 – up 3,000 from the previous week. Businesses still continue to hire as the economy grows at a very sluggish pace. Nevertheless, a healthy job market is signaled by a reading of 300,000 or less.
There is just enough strength in the numbers to start the rate hike speculation. Utilities are getting hit on this positioning off 1.5% while financials rally a bit.
Market internals are fairly split with the exception of NASDAQ decliners at 61%. Technicals are solid on all three major indexes with the Dow and S&P pausing above their 50-day moving averages. The NASDAQ remains solid with support at 5250.
There is a slight freak out on Deutsche Bank. The stock is being hammered and there are now reports of 10 US hedge funds with exposure. I am not suggesting a panic, but DB must address this immediately.
Comments |
What a call on NXP Semi, Charles!! Nothing wrong with 230%!! Thank you soooo much!!! sean s on 9/29/2016 1:53:20 PM |
Tweet |
3/28/2024 1:39 PM | Fruitful Quarter |
3/28/2024 9:50 AM | LISTEN TO THE MARKET |
3/27/2024 1:40 PM | Mostly Higher |
3/27/2024 9:32 AM | U-TURN? |
3/26/2024 1:08 PM | Everything Is Up |
3/26/2024 9:42 AM | TAPPED OUT (I HOPE YOU AT LEAST GOT A T-SHIRT) |
3/25/2024 1:33 PM | Not A Mutiny |
3/25/2024 9:35 AM | STAYING THE COURSE…BEYOND TECH |
3/22/2024 12:56 PM | Toll on Americans |
3/22/2024 9:38 AM | A TAD TIRED |
3/21/2024 1:55 PM | Building on Gains |
3/21/2024 9:30 AM | A COMFORTING FED |
3/20/2024 1:33 PM | Pivotal Moment |
3/20/2024 10:00 AM | HERE COMES THE FED |
3/19/2024 1:33 PM | Picking Up Steam |
3/19/2024 9:35 AM | RUMBLINGS IN THE BOND MARKET |
3/18/2024 1:48 PM | Mag 7 is Back |
3/18/2024 9:39 AM | THE PARTY IN SAN JOSE WILL BE LIT |
3/15/2024 1:38 PM | Realtors Settle |
3/15/2024 9:33 AM | AN UNEASY PAUSE |
3/14/2024 1:43 PM | Sticky Inflation |
3/14/2024 9:48 AM | GOING TO A GO-GO |
3/13/2024 2:16 PM | Taking a Breather |
3/13/2024 9:51 AM | ALL SO EPIC |
3/12/2024 1:42 PM | Marching Higher |
More commentary archives |
Home |
Products & Services |
Education |
In The Media |
Help |
About Us |
Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.
|