Seeking Alpha

Wall Street Str...'s  Instablog

Wall Street Strategies
Send Message
Wall Street Strategies has been providing independent stock market research since 1991 to individual, retail and institutional clients through a balanced approach to investing and trading. Charles Payne, our founder and chief analyst, is routinely sought after for his stock market, political,... More
My company:
Wall Street Strategies
My book:
Be Smart, Act Fast, Get Rich
  • SYRIA IN FOCUS - By WSS Research Desk 0 comments
    Aug 27, 2013 2:47 PM

    Please Watch Tonight "Making Your Market" Fox Business 6 p.m.

    By Carlos Guillen

    Stocks fell rather precipitously during the first five minutes to today's trading session, continuing the losses posted during yesterday's session as the possibility of U.S. military action against Syria has served to spook equity investors onto the sidelines. On the positive side and helping to mitigate some of the losses today was consumer confidence data that landed well above expectations.

    Quite encouraging today, but not enough to put markets into winning territory, was data from the Conference Board that showed that consumer confidence reversed and landed better than expected. According to the Conference Board, its consumer confidence index increased to 81.5 in August from the 81.0 reached in the prior month (revised up from 80.3), landing well above the Street's consensus estimate of 77.0. Consumers were more upbeat about the short-term outlook. The percentage of consumers expecting business conditions to improve over the next six months increased to 20.1 percent from 19.9 percent, while those anticipating business conditions to worsen decreased to 11.1 percent from 11.3 percent. The proportion of consumers expecting their incomes to increase rose to 17.4 percent from 15.7 percent, while those expecting a decrease declined to 13.5 percent from 13.7 percent. Also encouraging was that consumers' outlook for the labor market remained upbeat. In fact, those anticipating more jobs in the short term increased to 17.6 percent from 16.7 percent, while those anticipating fewer jobs edged down to 17.3 percent from 17.7 percent. In sum, consumers are seeing improvements in business conditions, employment, and even earnings, and it is apparent that the tax hike from earlier this year has been long forgotten.

    Clearly at the moment the focus is the escalating situation in Syria. Late yesterday stock market gains were erased after Secretary of State John Kerry said the United States would hold Syria accountable for using chemical weapons that opposition groups contend killed more than 1,300 people. While the knee jerk reaction to military conflicts that involve the U.S. tends to be a selloff of stocks, it should be noted that today's session is light in volume and this is also serving to make things worse. We would not be surprised if stocks make a rebound later in the session.

    Syria Spooks Oil
    By David Urani

    It's not a major oil producer but conflict in Syria is making the oil markets jittery today. John Kerry went ahead and addressed the crimes against humanity with Assad's use of chemical weapons and now it's up to the President to decide whether or not to intervene. So far the official stance is that no decision has been made yet but there's speculation from a number of sources suggesting some kind of action could be imminent including maybe a brief airstrike.

    While oil supplies wouldn't be directly affected, there's a fear of the conflict spilling into neighboring countries. Certainly it's far too early to call for a significant disruption but it's been enough to tip oil back to a new 2013 high as WTI crude oil is now moving past $109 resistance.

    (click to enlarge)

    Correction from the morning report: it was incorrectly stated that almost 8,000 died in three days of fighting at the battle at Gettysburg. Actually, 51,112 died in three days fighting Gettysburg.

    https://www.wstreet.com/user/register.asp?source=3

Back To Wall Street Strategies' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.