9 Reasons Markets Trended Down this Week

Dow 12,151 S&P500 1,300 Nasdaq 2,737 Gold 1,543 Oil 100

Markets down trended all week to end lower for the fifth straight week. Oil (NYSE:USO) was unchanged. Gold (NYSE:GLD) and Silver (NYSE:SLV) continued to show relative strength as the US Dollar (NYSE:UDN) ended the week at fresh one-month lows.

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Now, for the 9 reasons markets moved this week:

Tuesday

1) Greece seems to be moving out of the much hated “unknown”. Germany (NYSE:EWG) announced today that they will consider dropping their push to reschedule Greek debt early, allowing the EU to give Greece more bailout money to the tune of 30 billion euros. European stock markets closed higher Tuesday on hopes that Greece will no longer have to consider a restructuring of their debt. Greek Banks surged, and the euro rose 0.4% against the US Dollar (NYSE:UDN).

2) US home prices are in deep trouble. Case-Shiller housing prices fell by 4.2% in the first quarter 2011, after having previously fallen 3.6% in the fourth quarter 2010. With mortgage rates at record lows again, investors should start wondering how we put a floor in the real estate market (NYSE:IYR). No wonder consumers are not feeling very confident.

3) Tech delivered some interesting news. On one hand, Steve Jobs made the media happy by announcing iCloud ahead of Apple’s (NASDAQ:AAPL) much anticipated Developer Conference on June 6th. On the other hand, handset company Nokia (NYSE:NOK) warned Wall Street that current guidance is too bullish. Then, the Solar Energy Industries Association said falling production costs combined with incentives and tax breaks from the Federal Government are making the solar industry (NYSE:TAN) one of the highest growth areas in the tech (NASDAQ:QQQ) sector. Sound great considering LinkedIn’s (NYSE:LNKD) stock looks like it may have had an Icarus moment near the sun.

Wednesday

1) Economic data sucked. First we started with a much weaker than expected ADP Employment report. That was the shot heard ’round Wall Street. Then analysts tripped over each other to lower estimates for tomorrow’s big Non-Farm Payrolls report. After that, the pessimists were rewarded again as ISM Manufacturing missed analyst expectations by a mile. The mantra for the remainder of the day has been “slowdown”.

2) Automakers offered disappointing news. The mantra continued as Ford (NYSE:F), General Motors (NYSE:GM), and Toyota (NYSE:TM) announced poor automobile sales data. But data was brighter for retailers as we noted in our Retailer Roundup.

3) Tech had another big day. Nokia (NYSE:NOK) is getting hit like a bear raid and LinkedIn (NYSE:LNKD) broke technical support as we warned yesterday. On a positive note, Netflix (NASDAQ:NFLX) and Apple (NASDAQ:AAPL) have a lot of positive focus on their businesses during the All Things Digital Conference and next week’s Apple Developer’s Conference. But the stocks are still down in the slaughter.

Thursday

1) Continuing investigations into banks. It seems that every day we receive more news about state and national government investigations into the big banks’ mortgage practices. Today Goldman Sachs (NYSE:GS) was (finally) officially handed a subpoena by the Manhattan District Attorney’s Office, “seeking information on the firm’s activities leading into the credit crisis,” with Goldman accused of misleading clients and some of its executives possibly facing perjury charges over testimonies made before Congress last year. The news pushed Goldman shares down 1.31%. But at the same time, Goldman’s misfortune doesn’t seem to be hurting its competitors. Bank of America (NYSE:BAC) is up 0.44%, PNC is up 0.37%, and Deutsche Bank (NYSE:DB) is up 0.36%, making for a rather middling day of trading.

2) Retailers were mixed. Today we got a huge amount of same-store sales data from retailers. Clearly, they are feeling a pinch from rising food and gas prices. Out of the 24 companies releasing May same-store sales data today, 15 retailers missed Wall Street expectations (Thomson Reuters), 8 beat expectations, and 1 lone retailer delivered in-line. Here’s your Cheat Sheet to the company-by-company details.

3) Tech had yet another big day. While Nokia (NYSE:NOK) might not be faring well in today’s market, down another 1.79% for a staggering grand total drop of 20.04% since last week, they’re more the exception than the rule. After Google’s advances toward Groupon were rebuked last year, Google (NASDAQ:GOOG) is preparing to take on Groupon, who announced their much-anticipated IPO today. Amazon (NASDAQ:AMZN) also rolled out a daily deal aggregator AmazonLocal — possibly a HUGE threat to Groupon and other standalone sights. Apple (NASDAQ:AAPL) shares are up ahead of next week’s big conference, and Netflix (NASDAQ:NFLX) is still humming after a positive session at the D9 conference.

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