15 Reasons Markets Got Punched Like Pacquiao vs Mosley

Dow 12,638 S&P500 1,340 Nasdaq 2,827 Gold 1,491 Oil 97

Markets took a big hit this week after last week’s 5 day winning streak. The big story of the week was Oil (NYSE:USO) falling ~14% from new two-year highs and Silver (NYSE:SLV) crashing after CME Group (NASDAQ:CME) margin calls forced massive selling and stop-loss triggers.

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Now, for the 15 reasons markets moved this week:

Monday

1) Economic data was nothing special. ISM Manufacturing expanded in 17 of 18 categories, but it still slipped month-over-month. Don’t Miss: CHART OF THE DAY: Manufacturing Expands for Twenty-First Month in a Row.

2) Construction spending is still super weak. The headline numbers were up month-over-month, but we still clocked in 6.7 percent lower than March 2010. And if you think that’s bad, construction spending hasn’t been this low since before we ushered in the new millennium. Home builders (NYSE:XHB) took a hit as D.R. Horton Inc. (NYSE:DHI) dropped 2.8%, PulteGroup, Inc. (NYSE:PHM) fell 2%, KB Home (NYSE:KBH) dropped 1.6%, Lennar Corporation (NYSE:LEN) slid 3.3%, Toll Brothers, Inc. (NYSE:TOL) fell 1.8%, The Ryland Group, Inc. (NYSE:RYL) crashed 4%, and NVR, Inc. (NYSE:NVR) only slid 0.59%.

3) Earnings were s0-s0. Some had a big miss today from Loews (NYSE:L), but there were also some noteworthy wins out of DISH Network (NASDAQ:DISH), Humana (NYSE:HUM), and Automatic Data Processing (NASDAQ:ADP). If you love staying in the know during earnings season, join us for our coverage here all day long.

Tuesday

1) Earnings lust has slowed. Last week investors wooed stocks like valentines, but this week’s results seem relatively “boring.” Pharmaceutical giant Pfizer (NYSE:PFE) was down 3% on weak revenues, and household products goliath Clorox (NYSE:CLX) was down 3.6% after missing the net income investors desired. If you love staying in the know during earnings season, join us for our coverage here all day long.

2) Oil & Gas companies dove with gas. Oil (NYSE:USO) lost $2.31 to close at $111.21, and it took the abetting parties down too. Gas companies (NYSE:XOP) took a hit as Exxon Mobil (NYSE:XOM) dropped 1.5%, Chevron (NYSE:CVX) fell 1.86%, BP (NYSE:BP) dropped 2.4%, ConocoPhillips (NYSE:COP) slid 3.8%, Marathon Oil (NYSE:MRO) fell 1.59%, Hess (NYSE:HES) crashed 4.46%, and Suncor Energy (NYSE:SU) fell hard 5.37%.

3) Manufacturing data still looks OK, but the debt is all anyone cares about. A new Pew Study says, “The U.S. will likely owe $10.4 trillion this year, its largest debt relative to the economy since 1950.” No worries. Just raise the ceiling. How will we pay for it? With a fifth straight month increase in factory orders for Manufactured Goods, of course. Well, maybe not.

Wednesday

1) Economic data was lackluster. This morning started with lower than expected Private Payrolls and continued with a steep month-over-month drop in the ISM Non-manufacturing Index (Don’t Miss: “Chart of the Day: US Services Sector Trying to Hold On“). Last week’s lackluster data is catching up to us as earnings hasn’t been the savior this week.

2) Gas prices in Hawaii broke $6 a gallon. Oil (NYSE:USO) may have dipped, but someone forgot to tell a lone gas station (NYSE:XOP) attendant in Hana, Hawaii where you can love yourself some gas for the bargain price of only $6.03 a gallon. The silly high number is so silly, every media outlet focused on rising gas prices despite traders slaughtering Oil (NYSE:USO) two days in a row. Well, no one said the mainstream media ever focused on the right meme.

3) Remember the PIIGS? Portugal finally screamed “mercy” and accepted a 78 billion Euro rescue package. As investors wake up to reality, some are finally changing to a “risk off” stance as more debt addicts are in line for harsh sessions of rehab. At least Americans don’t have to worry (yet) because this Pew chart shows we’re in the middle of a textbook relapse.

Thursday

1) Economic data sucked. This morning the closely watched leading indicator for employment — Weekly Initial Jobless Claims — rose a stunning 10% to push us back to 474,000 claims. That’s horrible news since we need to stay under 400,000 weekly claims to meaningfully reduce unemployment. Tomorrow’s BLS Unemployment release will be more important than usual as investor psychology seems fragile.

2) Commodities crashed. Oil (NYSE:USO) crashed 10%. Silver (NYSE:SLV) crashed 10%. Agriculture (NYSE:RJA) and Agribusiness (NYSE:MOO) also pulled back. The good news: yesterday’s $6 gallon of gas is probably back in the high $5 range. If you remember what it looks like when a ton of newbie traders and hot money flee an asset class, you’re watching it in real-time. Some things never change.

3) Big Detroit made a roar. Although shares of General Motors (NYSE:GM) fell over 3%, the subsidized car maker grew net income over threefold in a year. Now that’s what we call a save by Uncle Sam. If you love staying in the know during earnings season, join us for our coverage here all day long.

Friday

1) Employment data shocked talking heads. If you watch the junk on financial news channels, you were probably short to the hills going into this morning’s BLS Unemployment release. That would’ve hurt. Private payrolls came in much stronger than expected, and previous data was revised upward. Clearly, we’re moving at a snail’s pace, but we’re not backsliding.

2) The EU is having an emergency meeting. Like the principal who can’t get away from the misfits, the EU is holding an emergency meeting to talk about Portugal and Greece. At one point there were rumors Greece is thinking about departing the European Union, but they are not confirmed.

3) Apple’s getting smitten with a new lover. Apple (NASDAQ:AAPL) has been a long time sweetheart of Intel (NASDAQ:INTC). Today, news scattered throughout the world that ARM Holdings (NYSE:ARM) may be moving in for the steal. ARM already provides chips for iPad, but they want laptops too. This is some serious drama in tech-land (NASDAQ:QQQ) as Apple is having a literal change of heart.

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