Red, White And … Whoa! - By Jennifer Coombs

Jul. 02, 2015 2:51 PM ET
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Long/Short Equity, Portfolio Strategy

Contributor Since 2008

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, and general opinions by several prestigious news organizations. Currently, Mr. Payne is a contributor to the Fox News Network and Fox Business Network. He also hosts his own radio show on KFIAM 640 every Saturday from 2-4pm PST. Mr. Payne recently released his first book entitled Be Smart Act Fast Get Rich. Our all-star analytical team is called first when the media needs to know. We are regularly featured on several well respected finance-oriented radio and television programs such as Fox, CNBC, BNN, WSJ to name a few and widely recognized in the media as a leaders in the analyst community. In addition, Wall Street Strategies is part of Factset, Jaywalk, and Thomson-Reuters Consensus Estimates. Meet our analysts: Brian Sozzi is an equity research analyst specializing in the softline/hardline goods sectors of the retail industry for Wall Street Strategies Inc. Mr. Sozzi graduated Summa Cum Laude from Dowling College, receiving his Bachelors of Business Administration with a concentration in Finance and Accounting. Routinely sought after as a trusted point of reference for opinions and insight on the global economy and retail sector stock evaluation, Mr. Sozzi is a frequent on air contributor to CNBC, Fox Business Network, and Bloomberg, and is cited regularly by online/print publications that include Forbes, Bloomberg, The Wall Street Journal, Thestreet.com, CBS Marketwatch, Reuters, Seekingalpha, Associated Press, Crain’s NY Business, Fortune, Barron’s, AOL Finance, and the Financial Times. In 2009, Mr. Sozzi became recognized by Starmine as a top-ranked equity research analyst for stocks under coverage in such categories as EPS Estimate Accuracy and Industry Excess Return. David Silver is a Research Analyst for Wall Street Strategies. He is a graduate of Tulane University’s A.B. Freeman School of Business where he received his Bachelor of Science in Management with a dual degree in Finance and Accounting. David actively covers companies in the Transports, Autos, and Beverage sectors. He is routinely invited to appear on business oriented television and radio shows including CNBC, Fox News, Fox Business News, the Business News Network of Canada, WCBS Radio, and the Wall Street Journal Radio. In addition, David has been quoted in major business publications such as the Wall Street Journal, Forbes, Marketwatch, CNN Money, and Autoweek. David Urani is a research analyst with concentrations on the homebuilding, staffing, medical devices, and logistical services industries. Along with providing institutional clients with up-to-date reports of individual stocks within his industry coverage, David assists the rest of the Wall Street Strategies research desk with timely analysis of vital economic data. A graduate of the A.B. Freeman School of Business at Tulane University, David earned a Bachelor of Science in Management while majoring in finance. With prior training experience running small businesses, he has an eye for key fundamentals that keep Companies running efficiently. David’s insight has been featured in several outside sources, including the Fox Business Network, MarketWatch, and SeekingAlpha. Carlos Guillen is an Equity Research Analyst providing coverage of the technology sector for Wall Street Strategies, Inc. Mr. Guillen has had experience working in both the sell side and the buy side. Prior to working as an analyst, he was a Design Engineer for Lambda Electronics. Mr. Guillen holds an M.B.A. from NYU’s Stern School of Business, and he has a B.S. in Electrical Engineering from Manhattan College. Conley Tuner is a Research Analyst with Wall Street Strategies Inc. He is a frequent contributor to a number of media outlets including MarketWatch, Bloomberg, BBC news and Xinhua news. Conley holds a Masters in Business Administration and a Masters in International Affairs from the George Washington University. Jennifer N. Coombs is an Equity Research Analyst at Wall Street Strategies. She previously worked on the buy side as an Associate Equity Research Analyst covering the transportation subsector of the industrials sector at AIG SunAmerica Asset Management Corporation. Jennifer also covered Real Estate Investment Trusts (REITs) and has done broader research for the industrials, financials and consumer sectors. Prior to joining their research department, Jennifer worked as a Trading Assistant for SunAmerica’s index funds. She also worked briefly in the client portfolio management department at Dwight Asset Management Company – a fixed income subsidiary of Goldman Sachs. Jennifer graduated with distinction from Clarkson University where she earned a B.S. in Financial Information Analysis and Political Science, with minors in Economics and Law. Jennifer specialized in international markets, and briefly studied East Asian Economics at Sungkyunkwan University in Seoul, South Korea. Jennifer is currently a member of the New York Society of Security Analysts (NYSSA).

We round out the last trading session before the long holiday weekend on mixed ground. The major equity indices opened substantially higher, only to take a massive plunge by the afternoon session. Greece can once again be blamed for the selloff as the International Monetary Fund (IMF) noted that Greece needs either a write-down equal to 30% of its gross domestic product (GDP) or maturity extensions on its debt to 40 years from 20 years. Additionally, Greece will need additional financing of over 60 billion euros through 2018, but the IMF does not see this crisis as a systematic threat to the Eurozone. Yeah, we'll see. Back in the homeland, the Bureau of Labor Statistics released the employment situation for the month of June. The unemployment rate dropped to 5.3% in June, after total non-farm payroll employment increased by 223,000 in June with strong job gains in professional and business services, health care, retail trade, financial activities, transportation and warehousing. At the same time though, the labor participation rate dropped to one of the lowest levels since the 1970s.

In the latest reading on initial jobless claims, the week of June 27th showed a rise in claims to 281,000 which is a 10,000 increase over the prior week, but remains at very low levels. The 4-week rolling average inched slightly higher by 1,000 to 254,750 claims, which is a level that is little changed over the prior month. Lagging by a week, continuing claims increased by 15,000 to 2.264 million in the week of June 20th. This caused the 4-week rolling average to increase by 15,000 to 2.253 million, but this reading, like initial claims, is also considered very low. Additionally, the unemployment rate for insured workers is unchanged at 1.7% in another reading that is very low. The best part is that there are no special factors impacting jobless claims this week, which coincides well with the new 5.3% unemployment rate.

Additionally, the factory sector which has been recently hit by a national decline in exports, is continuing to struggle as factory orders dropped by 1.0% in May. This is far below consensus' expectations for -0.3% and is near the low-end estimate for -1.2%. The durable goods component is now revised lower from the original data last week by -2.2% from -1.8%. Durables in April have also been revised lower to- 1.7% from -1.5% which is another bad sign for manufacturing. Aircraft orders, which are always volatile on a month-to-month basis, are to blame for the weakness in durables, dropping by 49.4% in May. When transportation component is excluded, factory orders were unchanged in the month of May, and isn't much better than the -0.6% drop from April. Both this report and the Bureau of Labor Statistics' jobs data may raise concern among the Fed doves about the alleged second quarter bounce that everyone was hoping for.

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