15 Reasons Markets Took a Hit This Week
Dow 12,044 S&P500 1,304 Nasdaq 2,715 Gold 1,421 Oil 101
Markets had a tough week dealing with the Middle East and Japan. You’ll notice that starting on Tuesday we started improving our daily market recaps by listening to your requests and beefing up the posts. If you still love the old “quick hits” style, you can skim the bold sentences and take your Cheat Sheet for the day ;)
Now, for the 15 reasons markets moved this week:
1) It’s all about Oil (NYSE:USO). Oil (NYSE:USO) flirted with $107 a barrel, and pessimism ran deep on Wall Street as Greece was downgraded again. Now check out Wall St. Cheat Sheet’s Top 10 Oil Exchange Traded Funds for Your Investing List >>
2) Chip stocks (NYSE:SMH) got hammered. Citigroup (NYSE:C) downgraded Marvell (NASDAQ:MRVL) and investors found a great reason to book profits in the hot tech sector (NASDAQ:QQQQ). Here’s How Google’s Android OS is Beating Apple and Blackberry >>
1) Oil and commodities finally eased while Main Street saw some handcuffs. Oil (NYSE:USO) has been single-handedly threatening everything, but some OPEC members are offering rhetoric about increasing supply if need be. On another note, Raj Rajaratnam started his insider trading trial and the masses are still looking for handcuffs before trusting markets again. Now check out Wall St. Cheat Sheet’s Top 10 Oil Exchange Traded Funds for Your Investing List >>
2) Bank (NYSE:XLF) stocks rallied hard. Bank of America (NYSE:BAC) CEO Brian Moynihan financial services super market “can generate significant excess capital and return it to shareholders.” You better believe that’s what investors have been waiting a few years to hear. But MarketWatch Editor-in-Chief David Callaway asks Will The US Economy Absorb Higher Oil Prices?
3) Silver (NYSE:SLV) calmed down slightly and Gold (NYSE:GLD) took a rest. The fear trade was off today on Wall Street. CME Group (NASDAQ:CME) commentator Jordan Roy-Byrne CMT took a deeper look at precious metals to answer the frequently asked question “Why is Silver Outperforming Gold?”
1) Tech malfunctioned after equipment makers Finisar Corporation (NASDAQ:FNSR) and Texas Instruments (NYSE:TXN) delivered bad news. Sales in China (NYSE:FXI) are slowing and inventories are building up. That’s the worst news a tech equipment company can give. Other stocks in the sector including JDS Uniphase (NASDAQ:JDSU) took big hits. On a rare positive note, IBM (NYSE:IBM) had a large analyst upgrade and the stock jumped over 2%. Now check out why Here’s Why Microsoft MUST Rebrand as Bing Now >>
2) Utilities (NYSE:XLU) had a solid day while fun beverages were mixed. FirstEnergy Corp. (NYSE:FE), Exelon Corporation (NYSE:EXC), and Duke Energy Corporation (NYSE:DUK) led the way as investors chased dividends connected to energy. On a consumer front, Green Mountain Coffee Roasters (NASDAQ:GMCR) spiked 6.5% after a report the company is killing Starbucks(NASDAQ:SBUX) with 90% of U.S. single-serve sales. Disappointingly, Boston Beer Company (NYSE:SAM) — maker of Sam Adams Beer — dropped 4% after warning the craft beer market is getting increasingly competitive. Don’t Miss: Utility ETFs: The Top 5 Exchange Traded Funds for Your Utility Investing List.
3) Dr. Copper (NYSE:JJC) got some bad medicine. Copper inventories in China (NYSE:FXI) are building as concerns over a global slowdown follow Oil’s (NYSE:USO) rise. On a technical analysis note, copper is starting too look like it could break down. So where should you be focusing in the commodities (NYSE:DBC) sector? We put together an investing watch list for your enjoyment, Commodities ETFs: The Top Exchange Traded Funds for Your Commodity Investing List.
1) Wall Street is scared shitless about tomorrow’s Day of Rage in Saudi Arabia. Mostinvestors are reducing exposure or hedging before what could become a new wave of instability in the Middle East. There have already been reports that protesting and rioting is starting. This will have the Oil (NYSE:USO) traders losing their voices tomorrow. Now check outHow Quickly Rising Oil Prices Impact the U.S. Economy.
2) Industrials and Capital Goods (NYSE:XLI) got slammed on economic fears. If the Middle Eastern lynchpin falls, energy prices could continue to have a negative impact on the global economy. Toss in a trade deficit in China (NYSE:FXI), a record Federal Budget deficit in the US, and Moody’s (NYSE:MCO) downgrade of Spain (NYSE:EWP), and it was a recipe for selling the highly sensitive basic components of things. Don’t Miss: Are These Two Charts Telling Us To Buy Gold, Silver and Commodities?
3) A hand full of stocks bucked the trend. While there was mostly blood on Wall Street, Starbucks (NASDAQ:SBUX) and Green Mountain Coffee Roasters (NASDAQ:GMCR) popped on a single-serving coffee partnership, Bank of America (NYSE:BAC) distributed an analyst note saying the Netflix (NASDAQ:NFLX) selling is overdone, and Wall St. Cheat Sheet Premium Pick Open Table (NASDAQ:OPEN) spiked from start to finish. Here’s a list of 40 Stocks Up in Today’s Down Market.
1) Talking heads speculated that Japan’s (NYSE:EWJ) loss could be a benefit to the US economy (NYSE:SPY). Now that Japan has to deal with a major disaster cleanup and the temporary shuttering of factories, economists are speculating multinational corporations will scramble to substitute Japanese products with those of other countries — including the US. You would think yesterday’s record Federal Budget Deficit would have people running for canned food, Gold (NYSE:GLD), and guns, but apparently no one minds the insanity in thisChart of the Day.
2) Defensive sectors did well today. As Saudi Arabia and Japan duopolize headlines, investors crammed into defensive sectors such as Utilities (NYSE:XLU), Consumer Staples (NYSE:XLP), and Healthcare (NYSE:XLV). Also doing well were oil services (NYSE:OIH) companies such as Schlumberger (NYSE:SLB) and Halliburton (NYSE:HAL), as well as technology companies National Semiconductor Corporation (NYSE:NSM) and Baidu.com (NASDAQ:BIDU). Don’t Miss: 3 Defensive ETFs to Hedge a Market Pullback.
3) US Retail Sales jumped the most in four months. Consumers bought 1% more than they did after January was revised up 0.7% rise. We also saw a “go private” bid for discount retailer 99 Cents Only Stores (NYSE:NDN). Other retailers (NYSE:XRT) that were hot today include AnnTaylor Stores (NYSE:ANN), The Gap (NYSE:GPS), and Abercrombie & Fitch (NYSE:ANF). However, see why Carl Icahn’s Hedge Fund Disaster Spells Selling for These Stocks.
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