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Stocks fall to weekly loss; Amazon results, Ukraine anxiety rattle investors

  • Stocks fell sharply, erasing the week's gains for the major benchmarks, as the earnings-fueled optimism of earlier this week soured amid disappointing results from the likes of Amazon; investors also were reluctant to hold stocks ahead of the weekend as tensions in Ukraine show no signs of easing.
  • Weakness in momentum names resembled the aggressive selling that took place at the start of the month, as Facebook, Google and LinkedIn all fell between 1.7% and 7.8%.
  • Amazon played a big part in consumer discretionary weakness, plunging nearly 10% after reporting below-consensus earnings and issuing cautious guidance, and other feature names fared poorly, as Priceline and Netflix fell by 4.9% and 6.4%, respectively.
  • Earnings season so far presents a muddled picture: Of the 48% of S&P 500 companies that have reported Q1 results, 73% have topped analysts' average profit forecast, but expectations were low, as S&P 500 profits so far are just 0.2% higher from a year ago.
  • The 10-year Treasury yield fell a basis point to ~2.67%, while gold futures advanced 0.8% to ~$1,300/oz.
Comments (14)
  • quabbin
    , contributor
    Comments (127) | Send Message
     
    Top that rise and face the pain.
    25 Apr 2014, 07:24 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11779) | Send Message
     
    The economy is not expanding even as interest rates and inflation rises. The only thing that did well the last 2 months was fruit prices rising 16%. Oh, I wonder if that will be cut out of inflation as a volatile price we should not look at like oil and gas, not that it doesn't impact us just as much or more than any other price.

     

    Once again, blame it on the weather, Greece, Russia, etc. Blame, blame, blame rather than face the fact the economy has not done much of anything for 5 years and this year will be much ado about nothing as substantive growth remains equally illusive (growth that accommodates anything more than working age labor growth and GDP growth that is more than 1% above inflation including food, energy, oil, and everything else including all that is excluded).
    26 Apr 2014, 01:27 AM Reply Like
  • Buprestid
    , contributor
    Comments (59) | Send Message
     
    CPI ex food and energy tracks CPI with food and energy averaged over time. Stop spewing your 10,000 comments of nonsense.
    26 Apr 2014, 06:02 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11779) | Send Message
     
    There are many articles showing that CPI does not accurately track to inflation by comparing it to real prices, deflators, and distortions in subtracting food and energy. It only takes a little bit of effort to realize price increases are greater than CPI especially after stripping out "volatile sectors". feel free to post an article justifying CPI as accurate. You will get shelled for good reason.
    28 Apr 2014, 12:47 AM Reply Like
  • Reel Ken
    , contributor
    Comments (5034) | Send Message
     
    Hi Moon

     

    ..."...blame rather than face the fact the economy has not done much of anything for 5 years..."

     

    It's hard to know where you are and where you're going if you can't remember where you've been.

     

    Fact is, five years ago the unemployment rate was exceeding 9% and we were LOSING over 3/4 million jobs PER MONTH.

     

    Knocking the unemployment rate by 1/3 and a 1 million increase in monthly job gains is going nowhere?

     

    And don't overlook a 10% increase in GDP.

     

    I won't be so smug as to suggest that a 250%+ increase in the Stock Market reflects the underlying economy, but certainly these other facts belie your message.

     

    If there is blame to go around it is on those that created the "Great Recession". We all know who they are, so no sense repeating it. But to inply that the last 5 years is a factor unto itself is just not appropriate.

     

    Now, we all know there's much to be done and a long way to go, but to paraphrase Lao-Tzu....

     

    "The journey of a thousand miles begins with one step."
    26 Apr 2014, 02:47 PM Reply Like
  • rebowley
    , contributor
    Comments (223) | Send Message
     
    Some journeys are not worth taking the first step. The difficult part, as always, is knowing which journey to take!
    27 Apr 2014, 09:22 AM Reply Like
  • Reel Ken
    , contributor
    Comments (5034) | Send Message
     
    "Acceptance of what has happened is the first step to overcoming the consequences of any misfortune."

     

    William James
    27 Apr 2014, 10:16 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11779) | Send Message
     
    The "recovery" is 1) one of the weakest in history. 2) a byproduct of the vestiges of capitalism left remaining along with massive stimulus that hasn't ended yet even though we are 5 years into the "recovery" 3) The lack of recovery is masked for now but will most likely give up all its superficial gains when the economy experiences a correction which is why the government and federal reserve are hell bent on continued support even as US Treasury prices rise and inflation shows its nasty head (because goods and services have failed to keep up with the artificial liquidity poured into it).

     

    It is clear that the private sector is succumbing to stagnation even while the public sector and businesses tied to dole outs grow larger and decimate the real economy to the point they can't recover or grow. One can track the devastation of the American dream and capitalist economy by the decline of the SME's in America. sure Wall street thinks it wins when TBTF Banks chomp on regional banks and big business gets subsidies and regulatory favors to help them stomp on their competition. However, inevitably the weakening of smaller businesses will lead to a decrease in wages and income which is called upon to pay taxes and grow the economy.

     

    Come the next big downturn the US will be more indebted, the Federal Reserve will be so leveraged Lehman will look like a solvent financial institution, and the US economy will have been pillaged to the point that 2008 will look like a strong economy. then you can tell me how far we've come. We have solved 0% of our structural problems and made a whole new set of them by embracing socialistic anti-free market and anti-capitalistic regulations and measures chief among them being TBTF protection and the nationalization of Fannie Mae and Freddie Mac.
    28 Apr 2014, 01:02 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11779) | Send Message
     
    Indeed, QE being the first step to economic hell, and socialism being the first step to the rest of hell. We have taken big steps towards damnation already.
    28 Apr 2014, 01:04 AM Reply Like
  • tjn6175
    , contributor
    Comments (44) | Send Message
     
    The market is efficient IMO. Yes, the Ukraine is weighing on the S&P ability to crack 1850, let alone 1900. Four times trying now? Meanwhile, look at the 30 year as it is inverting. I thought TLT was majorly breaking out around Christmas and January when it crossed 105. Friday it climbed to 111.99 intraday. This is a very interesting conflict going on between the long term treasury price increases due to safe haven vs the selloff due to perceptions about interest rates. Guess what. Safe havens winning so far, but expect some token pullback next week with the Fed.

     

    Now if I'm the independent Fed, don't I want my treasury assets to go up in price, so I can sell them in a year or so, rather than hold them forever. If so, how does the Fed play that one?
    26 Apr 2014, 08:37 PM Reply Like
  • rebowley
    , contributor
    Comments (223) | Send Message
     
    You have entirely too much confidence in the FED. History is a great teacher and it is not nice regarding the FED's ability to do anything. Today they are just doing what our politicians can't do or are unwilling to do.
    27 Apr 2014, 09:31 AM Reply Like
  • tjn6175
    , contributor
    Comments (44) | Send Message
     
    On the contrary, I care more about the markets' response to the FED actions than whether the FED is right or wrong. And, like clockwork, the guseeing game occurs every eight weeks, followed by the minutes week. This is acutely the case in the bond market. What I would like to see is a weak dollar triggering a rise in gold prices, in PARALLEL with FED staying course on taper and interest rate increases in a year or so. I think this would stabilize stock prices, send the bond prices a bit lower, yet move gold higher. In my opinion, gold is moving higher than treasuries lately only because the FED has a more direct control on bond prices via interest rate adjustments, than they do on gold. Not going to hold my breath counting on gold to be best safe haven based on geo-political or broad global fiat wars. I suppose it is still a US dollar trade at the end of the day.

     

    Lastly, the only reason behind all of the latest risk off behavior for stocks, and money flow into bonds and gold is uncertainty in Ukraine. The technical argument of MoMos and small caps moving into value is a small part of the story when you look at the recent rises in LT treasuries, gold, and utilities. So market sentiment over however small the Ukraine perception, is dominating.
    27 Apr 2014, 11:25 AM Reply Like
  • RS055
    , contributor
    Comments (3533) | Send Message
     
    Watch this - goosing USD/JPY before "Asian market open" - why? because ever since 2008 - the critters know there is just something special about that "Asian Market Open" ( heheh).
    Watch - as US markets open sharply up. Then, relax in comfort , knowing the "Fed has your back". No declines in excess of 5% will ever be allowed ( not since 2009). No sirreeee - Bob.
    Nothing really bad will ever really happen. Believe!!
    Well.... and if it does you can go crying to ........? Oh yes - Da Fed.. thats the ticket!
    27 Apr 2014, 06:32 PM Reply Like
  • RS055
    , contributor
    Comments (3533) | Send Message
     
    It would actually be less costly to the economy if , instead of all these clever folks trying to maintain the illusion of fair and efficient markets - that only go up ( of course) - If - they simply had a PC programmed with a growth rate of 10% with a random variation of +- 2% around it - and publish the prices on a giant bill board on Times Square. Then we can dispense with the entire Wall Street machinery and all the pretzel like body twisting and torturing of language- no need .
    27 Apr 2014, 06:36 PM Reply Like
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