Stocks opened higher and stayed there in ramped and camped fashion on carryover from yesterday’s Fed result and some economic data. Let’s not forget that the excitement surrounding the Alibaba IPO has gone over the top. Also, most retail investors would be lucky to get any of these shares on the initial price. That’s the way the IPO market goes, hot issues are fully spoken for and you’d have to hope your investment advisor is among those who gets stock on the come or it’s included in indexes and ETFs you’re involved with.
Economic data in the U.S. was mixed but bulls chose to bet on excellent Jobless Claims data (280K vs 300K expected & prior 316K). This was the best report in 14 years. Other indicators weren’t that positive. The Philly Fed Survey declined slightly to 22.5 vs 23 expected & prior 28. Housing Starts were also weak (956K vs 1.038M expected & prior 1.093M).
The results of the Scotland referendum won’t be known until early Friday morning as polls do not close there until 10 PM local time. A “yes” vote would make for a frantic Friday for equity and currency markets. But polls have the vote going the “no” way and investors accepted that as likely Thursday placing bullish bets.
Elsewhere doomsday speakers are still omnipresent led first by David Stockman who appeared on Yahoo today arguing a liquidity bubble has been created which will end badly despite current equity marker exuberance. Less strident was an article today by Mohamed Al-Arian who noted six things investors with rose colored glasses are ignoring, including: Geopolitical unrest; European weakening economy; Mid-Term elections; Japan’s experiment with Abenomics; Emerging Markets from Brazil, China and India concerns; and excessive stock buybacks and M&A by corporations. This is the “wall of worry” current markets are climbing. Frankly as Stockman notes, there’s no telling when the liquidity bubble will pop.
Leading market sectors higher included: Financials (XLF), Banks (KBE), Regional Banks (KRE), Materials (XLB), Industrials (XLI), Healthcare (XLV), Biotech (IBB), Semiconductors (SMH), India (EPI), EAFE (EFA), Europe (VGK), Germany (EWG), Thailand (THD), Indonesia (IDX), Solar (TAN), Pound Sterling (FXB) and Dividend ETFs like (DWX).
Leading market sectors lower included: Gold Miners (GDX), Metals & Miners (XME), Natural Gas Producers (FCG), Energy (XLE), REITs (IYR), Utilities (XLU), South Korea (EWY), Brazil (EWZ), Turkey (TUR), Russia (RSX), Coal (KOL), Commodity Tracking ETF (DBC), Base Metals (DBB), Crude Oil (USO), Natural Gas (UNG) and Agriculture (DBA)
The top 20 market movers by percentage change in volume whether rising or falling is available daily.
Volume was about average for the last three months and breadth per the WSJ was positive.
Around 2 AM EDT we might know the official result of the Scottish referendum vote. If it’s a no vote there may be some unrest and a yes vote will create market unrest. Take your choice.
Friday is the Alibaba IPO and for most of us it will be a spectator show.
Further tomorrow is Quadwitching and Leading Indicators.
Let’s see what happens.
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||92.27||-0.80||-0.86 %||13:29|
|US Dollar||84.86||0.47||0.55 %||13:42|
|Brazil||2423.602||-2.23 %||-9.98 %||9.26 %|
|Russia||645.030||-0.32 %||-0.59 %||-18.03 %|
|India||514.416||1.65 %||1.21 %||26.30 %|
|China||64.905||-0.88 %||-1.85 %||2.86 %|