Economic data was highlighted negatively at first by a sharp decline in Durable Goods Orders which fell 3.4% vs 0.7% expected & prior revised lower from -0.7% to -2.1%. Ex-Transportation the reading was also weaker falling to -0.8% vs 0.8% expected & prior revised lower form -0.4% to -1.3%.
Then markets were hit by a series of negative earnings reports from Microsoft (MSFT), Caterpillar (CAT), Proctor & Gamble (PG) and overseas heavyweight Siemens (SI). Markets didn’t like any of this and took stocks much lower early.
Then some better economic data included an outsized pop in Consumer Confidence (102.9 vs 96 expected & prior 93.1. What cause this in my opinion was lower gas prices but some suggested the responses expected better wages coming. Below are some charts reflecting this.
New Home Sales rose to 481K vs 452K expected & prior revised from 438K to 431K marking 7 straight months of downward revisions.
The S&P Case-Shiller HPI rose slightly to 0.7% vs 0.6% expected & prior revised lower to 0.7% from 0.8%. Not seasonally adjusted fell to -0.2% vs -0.2% expected and pri-o.1%. Below is the complete chart of city prices.
While there was a move to recover stock prices off the lows that only succeeding modestly as most indexes were down over 1.5%. There is ongoing worry about Apple’s (AAPL) earnings thinking the price may have overshot reality as noted HERE. But the after-hours release of earnings shows the company with a large beat on iPhone 6 sales.
There was also a rally in crude oil prices as wire reports from the King Abdullah’s funeral. There meetings were held with the new king and foreign ministers from Norway, Switzerland, Finland and Russia with the speculation being to stabilize oil prices. This led to a short squeeze in crude oil.
Leading market sectors higher included: Bonds (TLT), Gold (GLD), Silver (SLV), Gold Miners (GDX) Oil Services HOLDERS (OIH), Russia (RSX), Brazil (EWZ), Solar (TAN), Euro (FXE), Crude Oil (USO), Natural Gas (UNG) and Commodity Tracking ETF (DBC).
Leading market sectors lower included: Everything else.
The top 20 market movers by percentage change in volume whether rising or falling is available daily.
Volume increased from Monday and breadth per the WSJ was negative.
Earnings news combined with weak Durable Goods Orders undid markets Tuesday. Apple (AAPL), Yahoo (YHOO) and US Steel (X) all surged ahead after the close of trading on superior earnings results.
Wednesday is all about the Fed. Will they acknowledge some economic weakness or is everything fine and dandy with any disappointments just “transitory”.
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||45.98||0.83||1.84 %||16:19|
|US Dollar||94.26||-0.01||-0.01 %||16:43|
|Brazil||1827.897||-0.82 %||-0.24 %||-0.24 %|
|Russia||429.100||-5.26 %||5.97 %||5.97 %|
|India||543.421||0.00 %||9.47 %||9.47 %|
|China||69.549||-0.01 %||5.32 %||5.32 %|