Talking Heads Sink Stocks

[Excerpted from Bill Cara's Daily Report]

Stocks in NY sank at the open following various negative reports from TV talking heads, though trade volume was weak on the Easter Monday. After the close, Goldman Sachs (GS) surprised with unusually positive revenue and earnings. Today, President Obama will be making a speech on the state of the economy. Traders are confused.

Monday was pretty much a lost day in the market. Very little of consequence happened. By the close, the DJIA’s small loss (-25.57 -0.32% to 8057.81) offset the small gain in the S&P (+2.17 +0.25% to 858.73), while the NASDAQ (+0.77 +0.05% to 1653.31) was flat.

The Toronto Composite (+98.50 +1.07% to 9285.6) and the Toronto Venture Board (+11.89 +1.23% to 980.86) were stronger as the metal miners and goldminers enjoyed a good day.

Except for Japan’s Nikkei 225 index (-0.92% to 8842.7), prices Tuesday were strong in the major international equity markets: Australia (+2.22% to 3697.9), Shanghai (+0.54% to 2557.2), Hong Kong (+4.55% to 15580.2) and India (+1.51% to 10967.2).

In Europe at 8:00am ET, France (+1.01%), Germany (+1.48%) and UK (+0.40%) were stronger, but like Japan, traders there are concerned about the implications of a General Motors bankruptcy filing if that is to happen.

In NY Monday, seven of ten sectors were positive, with Financials (XLF +4.2%) being by far the strongest sector, led by Banks ($BKX +7.9%) as the strongest industry group. The Utilities (XLU -1.3%) and Energy (XLE -1.1%) were weakest.

For the Cara 100 companies, Teck Corp (TCK +11.0%) made more headway, followed by Brazil’s Votorantim (VCP +7.9%), Aetna (AET +6.9%), India’s ICICI Bank (IBN +5.5%), and Silver Wheaton (SLW +5.0%). The worst losers were Boeing (BA -5.1%) on a reported plan to cut back on production, which was surprising given the huge order back-log, and Russia’s Vimpel-Communications (VIP -3.1%).

Monday, US Treasury yields dipped on the 30-, 10-, and 5-year series to 3.687, 2.845, and 1.791, respectively, as the long bond ($USB) regained some strength after the fall on Friday, lifting +0.93% to 127.09. The T-Bill yield dropped to 0.170.

Retail Sales in the US declined -1.1% vs an expected gain of +0.3%.

The $USD pulled back to start the week after last week’s string of gains (-1.34% to 84.52), while, against the USD, the Yen (+0.28% to 99.90), Euro (+1.52% to 133.67), Pound (+1.14% to 148.51), and Cdn Loonie (+0.37% to 81.97) all made up ground.

Crude Oil ($WTIC -1.71/bbl to 52.98) pulled back, but was a little stronger this morning. Yesterday, traders had been thinking of the growing inventory levels, and they will be closely watching this week’s report.

$GOLD (+$15.30/oz to 894.10) soared soon after several pundits had called for a sharp drop to 700 or 750.

Spot (cash) market prices this morning at 8:00am ET for gold, palladium, platinum and silver were: 893.20, 236, 1223, and 12.70, respectively.

DJIA futures at 8am were down -10 to 7985.

Traders are waiting for the bank stocks to move in one direction or the other here.

Johnson & Johnson (JNJ) just reported a small disappointment.

Comments

[woodsey:]

President Obama seems bent on negating any good news he might have engendered. We can count on that.

Apr 14 12:13 PM

[Tony Petroski:]

The markets boom when Obama is out of the country and sink when he gives a speech back in the good old USA. Can't Obama spend more time in Europe where he is universally loved?

Apr 14 07:27 PM

[notsosmart:]

pay no attention to talking heads on tv or authors who blog & write. all have an agenda & its not filling your pocket. maybe picking it.think for yourself.

Apr 15 08:39 AM