FOMC’s Hawkish Shocker Delivers Disorder
The FOMC meeting minutes were as dangerous as I expected they would be earlier this week. The shocker offered up in the minutes was that the Fed would stop its asset purchase program sooner than some expected, and so traders wondered if that meant it would start rates higher sooner as well. Add to that revelation the fact that Germany is asking us if we ever really loved her, and you can understand the day’s emotional strife.
Stocks are unsettled thanks to the FOMC shocker and the fact that the Germans are thinking about breaking up with us on broken trust.
International Markets
International markets remained burdened by geopolitical chaos. Energy sources to the East and Southeast remain in question as chaos rules Iraq and as Russia continues to pester the new Ukrainian government. Let’s not even get into the volatile situation in Israel. Meanwhile, Europe does not know if it can trust the U.S. any longer, given recent espionage revelations. It has set order into disorder and regional stocks are compensating for that.
Economic Data
The key economic data point today was well discussed by your author here earlier this week in my article, Warning! The Fed Could Kill Stocks this Week. As you can see by the chart, it did kill stocks but only for about an hour or so. The FOMC offered a surprise, showing that it would be stopping its asset purchases in October of this year, dropping from $15 billion to zero rather than going on to $5 billion. That changed the timeline toward rate increase, or at least seems to have. If asset purchases are stopping early then what comes next may be doing so as well. This illustrated precisely what I discussed in my article, that the intensity of discussion about rate increases was rising, and that would deter stock investment as time progresses.
Commodity Markets
Energy prices are lower along with all sorts of commodities levered to the dollar, given that the Fed is apparently growing hawkish. If Fed tightening is ever closer, than dollar strength is as well, so the prices of commodities fall in concert. You’re welcome…
Stock Activity
Another short list of earnings reports on this light post holiday trading week, but everything turns up a notch on Friday with Wells Fargo’s (NYSE: WFC) report.
Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.
Today’s Market
Market ETF
|
07/09
|
Vanguard S&P 500 (NYSE: VOO)
|
+0.4%
|
iShares Dow Jones (NYSE: IYY)
|
+0.2%
|
Fidelity NASDAQ ETF (Nasdaq:
ONEQ)
|
+0.7%
|
ProShares Ultra Gold (NYSE: UGL)
|
+1.7%
|
ProShares Ultra Real Estate (NYSE: URE)
|
-0.1%
|
ProShares Ultra Oil (NYSE: UCO)
|
-2.3%
|
WisdomTree US$ Bullish (NYSE:
USDU)
|
+0.0%
|
iShares 20+ Yr. Treasury (NYSE: TLT)
|
+0.0%
|
 |
| 1-Day Chart of SPY at Yahoo |
Stocks are unsettled thanks to the FOMC shocker and the fact that the Germans are thinking about breaking up with us on broken trust.
International Markets
EUROPE
|
%
|
ASIA/PACIFIC
|
%
|
iShares Europe (NYSE: IEV)
|
+0.3%
|
Japan Equity (NYSE: JEQ)
|
+0.6%
|
WisdomTree UK (Nasdaq: DXPS)
|
-1.3%
|
China Fund (NYSE: CHN)
|
-0.3%
|
Societe Generale ADR (OTC: SCGLY)
|
-1.3%
|
Asia Tigers (NYSE: GRR)
|
-0.1%
|
WisdomTree Germany (Nasdaq: DXGE)
|
+0.2%
|
Korea Equity (NYSE: KEF)
|
-0.7%
|
National Bank Greece (NYSE: NBG)
|
-0.7%
|
India Fund (NYSE: IFN)
|
-0.1%
|
International markets remained burdened by geopolitical chaos. Energy sources to the East and Southeast remain in question as chaos rules Iraq and as Russia continues to pester the new Ukrainian government. Let’s not even get into the volatile situation in Israel. Meanwhile, Europe does not know if it can trust the U.S. any longer, given recent espionage revelations. It has set order into disorder and regional stocks are compensating for that.
Economic Data
Economic Data Point
|
Prior
|
Current
|
WEDNESDAY
|
||
-0.2%
|
+1.9%
|
|
-Crude Oil Inventory
|
-3.2 MB
|
-2.4 MB
|
-Gasoline Inventory
|
-1.2 MB
|
+0.6 MB
|
China Reports on Inflation
|
||
US-China Strategic Economic Meeting
|
||
Economists’ Roundtable w/Greece
|
The key economic data point today was well discussed by your author here earlier this week in my article, Warning! The Fed Could Kill Stocks this Week. As you can see by the chart, it did kill stocks but only for about an hour or so. The FOMC offered a surprise, showing that it would be stopping its asset purchases in October of this year, dropping from $15 billion to zero rather than going on to $5 billion. That changed the timeline toward rate increase, or at least seems to have. If asset purchases are stopping early then what comes next may be doing so as well. This illustrated precisely what I discussed in my article, that the intensity of discussion about rate increases was rising, and that would deter stock investment as time progresses.
Commodity Markets
United States Oil (NYSE: USO)
|
-1.3%
|
iPath SP Crude Oil (NYSE: OIL)
|
-1.4%
|
U.S. Natural Gas (NYSE: UNG)
|
-1.4%
|
U.S. Gasoline (NYSE: UGA)
|
-1.0%
|
SPDR Gold Trust (NYSE: GLD)
|
+0.8%
|
Market Vectors Gold Miners (NYSE: GDX)
|
+2.6%
|
iShares Silver Trust (NYSE: SLV)
|
+0.6%
|
iPath DJ UBS Industrial Metals (NYSE: JJM)
|
-0.5%
|
Teucrium Corn ETF (NYSE: CORN)
|
-1.5%
|
Teucrium Wheat Fund (NYSE: WEAT)
|
-1.1%
|
Teucrium Soybean Fund (NYSE: SOYB)
|
-1.2%
|
iPath DJ-UBS Cocoa (NYSE: NIB)
|
-1.2%
|
iPath DJ-UBS Sugar (NYSE: SGG)
|
-1.5%
|
ICE Orange Juice Conc.
|
+0.1%
|
CME Lumber
|
+1.9%
|
CME Live Cattle
|
-1.6%
|
Energy prices are lower along with all sorts of commodities levered to the dollar, given that the Fed is apparently growing hawkish. If Fed tightening is ever closer, than dollar strength is as well, so the prices of commodities fall in concert. You’re welcome…
Stock Activity
Another short list of earnings reports on this light post holiday trading week, but everything turns up a notch on Friday with Wells Fargo’s (NYSE: WFC) report.
EPS REPORTS
|
|
Company
|
Ticker
|
WEDNESDAY
|
|
API Technologies
|
Nasdaq: ATNY
|
Accretive Health
|
Nasdaq: ACHI
|
CHC Group
|
Nasdaq: HELI
|
Doral Financial
|
NYSE: DRL
|
Emmis Communications
|
Nasdaq: EMMS
|
GenCorp
|
NYSE: GY
|
Griffin Land & Nurseries
|
Nasdaq: GRIF
|
Helen of Troy
|
Nasdaq: HELE
|
Hertz Global
|
NYSE: HTZ
|
MagnaChip Semiconductor
|
NYSE: MX
|
MSC Industrial Direct
|
NYSE: MSM
|
Ocean Power Technologies
|
Nasdaq: OPTT
|
Prospect Global Resources
|
Nasdaq: PGRX
|
Pure Cycle
|
Nasdaq: PCYO
|
Synergy Resources
|
Nasdaq: SYRG
|
WD-40
|
Nasdaq: WDFC
|
TODAY’S MOST ACTIVE STOCKS
|
|
BIGGEST GAINERS
|
% Gain
|
SinoCoking Coal (Nasdaq: SCOK)
|
+31%
|
CymaBay Therapeutics (Nasdaq: CBAY)
|
+22%
|
Pixelworks (Nasdaq: PXLW)
|
+16%
|
InterCloud Systems (Nasdaq: ICLDW)
|
+16%
|
Golden Minerals (Nasdaq: AUMN)
|
+15%
|
AeroVironment (Nasdaq: AVAV)
|
+12%
|
Ikonics (Nasdaq: IKNX)
|
+12%
|
Colonial Financial Services (Nasdaq: COBK)
|
+12%
|
GSI Technology (Nasdaq: GSIT)
|
+12%
|
BioAmber (Nasdaq: BIOA)
|
+11%
|
BIGGEST LOSERS
|
% Drop
|
Gigamon (Nasdaq: GIMO)
|
-33%
|
Synergy Pharmaceuticals (Nasdaq: SGYPW)
|
-24%
|
Molycorp (NYSE: MCP)
|
-16%
|
IntelliPharmaCeutics (Nasdaq: IPCI)
|
-14%
|
EveryWare Global (Nasdaq: EVRY)
|
-12%
|
Viggle (Nasdaq: VGGL)
|
-14%
|
UBIC (Nasdaq: UBIC)
|
-11%
|
Vapor (Nasdaq: VPCO)
|
-9%
|
The Container Store (NYSE: TCS)
|
-9%
|
Penford (Nasdaq: PENX)
|
-9%
|
Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only.
Labels: Federal_Reserve, Federal-Reserve-2014-Q3, Market-Outlook, Market-Outlook-2014-Q3
posted by The Greek | 7:06 PM
0 Comments:
Post a Comment
<< Home