Today Alibaba (BABA), Yahoo (YHOO) and Qualcomm (QCOM) conditions weighed on markets early.
But in the afternoon and handful of high priced Dow stocks (in the price weighted index) like BA, GS, IBM, MCD, HD and MMM were responsible for most of the gains.
"We're looking at the big household names that put out disappointing numbers this week and we're putting undue influence on that." Art Hogan, chief market strategist at Wunderlich Securities.
This is the kind of stuff market bulls put out which is the amnesia drug to help you forget crappy earnings from important companies and buy stocks. So after the post-Fed Meeting decline the short squeeze to keep January positive was launched. At the same time there was a report per Sen. Charles Schumer that Yellen privately told democrats there would no rate increase soon. That launched buy programs.
Two completely opposite economic reports allowed investors to discard one but not the other. The bad report was a sharp decline in Pending Home Sales (-3.4% vs 0.9% expected & prior 0.6%). The good report was much lower Jobless Claims (265K vs 300K expected & prior 308K). Bulls jumped on this as in sync with Fed Meeting talking points Wednesday. We may discover later that some states were slow to report data but if not, may mark the low point just as energy worker lay-offs mount.
After the close of trading Thursday we’ll have earnings from Google and Amazon and after analysts have lowered expectations we’ll see if they beat and give positive outlooks. Google (GOOG) $6.88 vs expected $7.11 and revenues lower: stock weaker after hours. Amazon (AMZN) 18 cents vs 17 cents expected and revenues slightly weaker: shares much higher after hours..
Leading market sectors higher included: S&P 500 (SPY), Tech (QQQ), Dow (DIA), Small Caps (IWM), Financials (XLF), Banks (KBE), Materials (XLB), Industrials (XLI), Consumer Discretionary (XLY), Homebuilders (ITB), Value (IWN), Healthcare (XLV), Utilities (XLU), China (FXI), India (EPI), Israel (EIS), Crude Oil (USO), Germany (EWG), Europe (VGK), France (EWQ) and many more.
Leading market sectors lower included: Gold (GLD), Silver (SLV), Metals & Mining (XME), Steel (SLX), Gold Miners (GDX), Oil Services Holders (OIH), Taiwan (EWT), Mexico (EWW), Russia (RSX), Yen (FXY), Canadian Dollar (FXE), Commodity Tracking ETF (DBC) Natural Gas (UNG) and Bonds (TLT)
The top 20 market movers by percentage change in volume whether rising or falling is available daily.
Volume was on par with Wednesday and breadth per the WSJ was positive as it was “risk on” once again.
I guess it’s not remarkable that Yellen would give private information about interest rates to the democrats and that this would be leaked by media hungry leader Schumer. But it raises many questions about impropriety, manipulation and lack of transparency. Nevertheless the bulls loved it.
Next is Friday’s Consumer Sentiment (which should be quite high given low gas prices), Chicago PMI and most important will be the GDP report. Will the latter continue at 5% or below that? We’ll be waiting for Consumer Metrics Institute to give us the appropriate analysis and details.
Let’s see what happens.
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Dave Fry is founder and publisher of ETF Digest and has been covering U.S. and global ETFs since 2001.
He is the author of "Create Your own ETF Hedge Fund: A Do-It-Yourself Strategy for Private Wealth Management" published by Wiley Finance and "The Best ETFs: U.S. Equities, A Companion Guide to Building Your ETF Portfolio"
Disclaimer: The charts and comments are only the author's view of market activity and aren't recommendations to buy or sell only any security. Market sectors and related ETF's are selected based on his opinion as to their importance in providing the viewer a comprehensive summary of market conditions for the featured period. Chart annotation's aren't predictive of any future market action rather they only demonstrate the author's opinion as to a range of possibilities going forward. More detailed information, including actionable alerts, are available to subscribers at www.etfdigest.com
|WTI Crude Futr||44.47||0.02||0.04 %||16:15|
|US Dollar||94.97||0.00||0.00 %||16:43|
|Brazil||1803.547||-2.46 %||-1.57 %||-1.57 %|
|Russia||420.482||-2.66 %||3.84 %||3.84 %|
|India||547.222||0.54 %||10.24 %||10.24 %|
|China||68.768||-0.07 %||4.13 %||4.13 %|