Week in Review 10-14/10/2011

Date of publish: 14/10/2011

For Financial week: 10-14/10/2011

Written by Matthew McCreath

Week in Review 

Stocks had their steepest drop in two weeks, as fresh European sovereign-debt worries helped knock the market off a 2 ½-month closing high. The tone soured before the opening of U.S. trading after a representative for German Chancellor Angela Merkel said Europe's leaders would be unable to address every sovereign-debt problem at a euro-zone summit on Oct. 23. The Dow Jones Industrial Average on Monday lost 247 points, or 2.13%, to 11397, closing near the session's lows and wiping out all of Friday's gains. The loss pushed the blue-chip index back into negative territory for 2011. The S&P 500-stock index shed 24 points, or 1.94%, to 1201, and the technology-oriented Nasdaq Composite declined 53 points, or 1.98%, to 2615.

Shares rose sharply but failed to recapture steep losses in the previous session, as conflicting reports on Europe's debt crisis whipped the market around during Tuesday's final trading hour. The Dow seesawed from steep losses to big gains in a volatile session before finishing up 180 points, or 1.6%, to 11577. The rally came after the blue-chip index dropped 247 points Monday. The S&P 500-stock index gained 25 points, or 2%, to 1225, led higher by strong gains for financial and energy stocks. The Nasdaq Composite rose 43 points, or 1.6%, to 2657. The market received a jolt higher in the final hour of trading after the Guardian reported France and Germany agreed to increase the size of Europe's rescue package to more than €2 trillion ($2.7 trillion). But the report was almost immediately contradicted by Dow Jones Newswires, which reported European officials are still debating the size of the euro zone's bailout fund.

Stocks dropped as a gloomy assessment of the U.S. economy from the Federal Reserve added to a sharp fall in technology stocks after Apple’s earnings disappointment. The Dow Jones Industrial Average fell 72 points, or 0.6%, to finish at 11504. The S&P 500-stock index lost 15 points, or 1.3%, to 1210, and the Nasdaq Composite shed 53 points, or 2%, to 2604. The Dow spent much of the day in positive territory but quickly sank after the release of the Fed's "beige book" report of domestic economic activity showing investors pared back risk in line with the central bank's cautious take on the economy.

Stocks rose Thursday, zigzagging from losses to gains throughout the session after a series of conflicting headlines on European sovereign debt. The Dow finished up 37.16 points, or 0.3%, to 11542, while the S&P 500-stock index added 5.51, or 0.5%, to 1215. The Nasdaq Composite fell 5 points, or 0.2%, to 2599. Stocks whipped from positive to negative throughout the session. They moved higher midday after French President Nicolas Sarkozy and German Chancellor Angela Merkel issued a joint statement pledging European Union leaders would have a bailout plan in place by Wednesday. Those leaders also called for immediate talks with the private sector over Greek debt. Earlier, stocks had fallen after reports a Sunday European summit could be postponed because of disagreements over how to deploy cash in the Continent's bailout fund.

Stocks rose following another batch of corporate earnings and ahead of this weekend's European Union summit on the sovereign-debt crisis. The Dow gained 226 points, or 2%, to 11768, near session highs during the final trading hour of the day. The gains put the Dow on pace for its fourth straight weekly gain, marking its longest winning streak since January. The measure is up more than 1% this year. The S&P 500-stock index advanced 20 points, or 1.6%, to 1235. The technology-oriented Nasdaq Composite advanced 32 points, or 1.2%, to 2630. Investors remain fixated on how European leaders will combat the debt crisis that has spread to many regions across the euro zone. 

Week in Review 14/10/11

Date of publish: 14/10/2011

For Financial week: 10-14/10/2011

Written by Matthew McCreath

Week in Review 

     Stocks soared, on Monday, as investors put their faith in a resolution to Europe's debt crisis and the ability of U.S. companies to power through an uncertain economy. The Dow Jones Industrial Average jumped 330 points, or almost 3%, to 11433, its biggest one-day surge in two months.  Monday's gains came after German and French leaders said they were determined to present a "comprehensive package" by the end of October that would include a plan to recapitalize euro-zone banks as needed and address the Continent's debt crisis.

     U.S. stock benchmarks ended a low-volume session close to the flat line Tuesday, with investors unwilling to make big bets ahead of an unofficial start to the earnings season and Slovakia’s vote on the euro zone’s bailout fund. The Dow Jones Industrial Average finished the day 17 points, or 0.2%, lower at 11,417. The S&P 500 Index inched up 0.65 point, or 0.1%, to 1,196. Utilities and telecommunication shares were hit the hardest, while technology stocks outperformed among its 10 industry groups. The Nasdaq Composite Index   climbed 17 points, or 0.7%, to 2,583.

     Stocks finished with strong gains, Wednesday, amid optimism about plans to recapitalize euro-zone banks. The Dow Jones Industrial Average advanced 103 points, or 0.9%, at 11519. The Standard & Poor's 500-stock index climbed 12 points, or 1%, to 1207, and the Nasdaq Composite advanced 22 points, or 0.8%, to 2605. With the gains, the Dow is up 5.6% this month, the fifth-best start to October since 1900, and is down just 0.5% on the year. During Wednesday's session, the Dow rose 209 points, putting it into positive territory for the year, before dropping in the final hour. The European Commission Wednesday set out its plan to shore up European banks in the face of the region's sovereign-debt crisis. In addition, Slovak lawmakers regrouped to broker a deal that would remove the remaining obstacle to enhancing the euro zone's government bailout fund.

     The financial sector led stocks lower, Thursday, following less-than-stellar results from J.P. Morgan Chase, while strength in technology shares limited the broader market's losses. The Dow Jones Industrial Average fell 41 points, or 0.4%, to 11478, after dropping as much as 141 points on Thursday. It marked the Dow's second drop in the last three sessions and biggest decline since Oct. 3. The blue-chip index still is up 5.2% this month and briefly moved this week into positive territory for the year before pulling back. It is down 0.9% this year. The S&P 500-stock index eased 4 points, or 0.3%, to 1204. Financial and industrial stocks registered the biggest declines, while technology stocks rose. Meanwhile, the Nasdaq Composite rose 16 points, or 0.6%, to 2620, marking its fourth straight gain. The technology-oriented index has gained 12% over the last eight trading sessions.

     Stocks rose Friday, driving the Dow Jones Industrial Average to its longest weekly winning streak in six months and pushing both the Dow and the Nasdaq Composite into positive territory for the year. The Dow industrials climbed 166 points, or 1.5%, at 11644, near the session high, en route to its first string of three straight weekly gains since the three-week period ending April 8. The S&P 500-stock index gained 21 points, or 1.7%, to 1224.58, with energy, material and technology stocks in the lead. The Nasdaq Composite advanced 48 points, or 1.8%, to 2668. Stocks rose amid strong U.S. retail-sales data, signs of progress in Europe's sovereign-debt crisis and stellar results from Google, all of which helped set the positive tone.

Week in Review 30/9/2011

Date of publish: 30/9/2011

For Financial week: 26-30/9/2011

Written by Matthew McCreath

Week in Review 

   

   Stocks jumped and blue chips staged their biggest percentage gain in more than a month, as investors bet that efforts will be taken to stem Europe's sovereign-debt crisis. The Dow climbed 272 points, to 11044, clawing back more than one-third of last week's losses. The S&P 500-stock index gained 27 points, to 1163. The Nasdaq Composite was the laggard, gaining 33 points, to 2517, after spending much of the day in negative territory.  Stocks closed near session highs following reports that a "special purpose vehicle" to help stem Europe's debt contagion was in advanced development. Those reports followed an ECB official's endorsement of a more aggressive bailout plan and another official's remark that the ECB can't rule out an interest-rate cut.

   A sharp afternoon downdraft prompted U.S. stocks to erase more than half of their earlier gains, as investors fretted over a report that highlighted a potential split in the euro zone over the terms of Greece's second bailout. The Dow finished the session up 147 points, to 11191, after surging as much as 325 points. The S&P 500-stock index gained 12 points, to 1175. The Nasdaq Composite closed up 30 points, to 2547.

   U.S. stocks snapped a three-day winning streak, sinking as a drop in commodities prices added to concerns about policymakers' ability to contain Europe's debt crisis. The Dow fell 180 points, to 11011. The S&P 500-stock index lost 24 points, at 1151, while the Nasdaq Composite shed 55 points, to 2492. The moves came on a day when Finland voted to approve changes to the euro-zone bailout fund, after leaders raised concerns earlier this month that they would demand collateral as a precondition for participation. Germany votes on the changes Thursday. The changes need to be approved by all 17 euro-zone members to take effect.

   Stocks erased a strong rally but still finished off their worst levels Thursday in thin, choppy trading as the Dow and S&P rebounded from afternoon lows. Stocks started the session sharply higher following several robust economic news and after Germany's parliament passed a crucial vote which approved the reforms to the EFSF. The Dow gained 143 points, or 1.30 percent, to finish at 11,154, rebounding from its afternoon lows. The S&P 500 rose 9 points, or 0.81 percent, to end at 1,160. The Nasdaq slid 11 points, or 0.43 percent, to close at 2,481.

   Stocks declined, setting the market up to close the worst quarter in years on a down note, with glum overseas economic reports weighing on investor sentiment. The Dow shed 156 points, to 10999, in Friday afternoon trading. The Dow has lost 10% for the quarter as of Thursday's close, the biggest percentage decline since the first quarter of 2009 and the worst point drop since the nadir of the financial crisis in late 2008. The S&P 500-stock index shed 18 points, to 1143, while the Nasdaq Composite slid 44 points, to 2438. Those two indexes also are closing out their worst quarterly performance in years.

Week In Review 23/9/11

 Disclaimer: The above statements should not be seen as a financial recommendation. Any trades or investments discussed within this newsletter are simply my own thoughts as of the moment of publication, and are subject to change. Traders entering any market should make their own decisions based off their own research and tolerance for risk. Losses in trading are very real and can exceed your initial investment. There is no guarantee that I will enter, or have entered any of the trading or investing ideas discussed in this newsletter. I, the author do not grant this work for distribution beyond any single individual subscriber as this publication is protected by International Copyright laws. All rights reserved. No license is granted to the user except for the user's personal use. No part of this publication or its contents may be copied, downloaded, stored in a retrieval system, further transmitted or otherwise reproduced, stored, disseminated, transferred, or used, in any form or by any means except or with prior written permission. I am not a licensed financial planner or advisor. It is also understood that the writer of this newsletter has warned against the dangers of shadowing other traders thoughts.

Week In Review (Newsletter 29/8-2/9/2011)

The market Stocks rallied Monday, following a trifecta of positive news: A Greek bank deal, a solid U.S. consumer spending report and relief that Hurricane Irene caused less damage than expected. The Dow Jones industrial average added 254 points to close at 11,539. The S&P 500 rose 33 points to 1,210. The Nasdaq Composite gained 82 points to 2,562.   Early Tuesday morning, investors were spooked by a report that showed consumer confidence sunk to its lowest level in more than two years. All indices closed the day in positive territory. The Dow Jones industrial average moved up 20 points to 11,559.95. The S&P 500 rose 3 points to 1212.92; while the Nasdaq added 14 points to 2576.11. Stocks got a bit of a late-day bounce from the release of the Federal Reserve minutes. The minutes revealed that some members supported QE3. U.S. stocks advanced Wednesday, pushing the Dow back into positive territory for 2011 and capping a four-day winning streak that closed a volatile August. The Dow finished with a gain of 53 points 11613.5. AT&T shed 3.9%, to 28.48, after the U.S. Justice Department filed a civil antitrust lawsuit that seeks to block AT&T's proposed takeover of T-Mobile. The S&P 500-stock index gained 6 points 1218.9, led by financial and utility stocks. The Nasdaq Composite eked out a rise of 0.1%, to 2579.46. Three batches of economic data helped set a positive tone for Wednesday's session. Despite the recent strength the major All three indexes had their worst August since 2001 after fears of an economic slowdown in the United States and debt issues in Europe put investors on edge. A four-day rally ended Thursday with a slump led by banks. Many investors sold stocks ahead of the monthly jobs report Friday. The Dow Jones industrial average fell 119.96 points to close at 11,493.57. Markets rose shortly after the manufacturing report showed evidence of growth in August. Retailers rose after reporting strong sales last month, despite worries about the economy. The S.& P. 500 fell 14.47 points to 1,204.42. The Nasdaq fell 33.42 to 2,546.04. U.S. stocks tumbled on Friday after data showing zero jobs growth in August brought investors face-to-face with the prospect of another recession. The declines left Wall Street lower for the sixth week out of seven on a light-volume day ahead of the long U.S. Labor Day holiday weekend. Stocks had rebounded recently on expectations the Federal Reserve would introduce new stimulus to boost the sluggish economy. However latest reports show that action by the Fed alone cannot address the economy's problems.  Bank shares were again among the day's biggest losers after U.S. housing regulator filed a lawsuit against Bank of America Corp, JPMorgan Chase & Co, Goldman Sachs Group Inc and other big lenders over mortgage practices. The Dow Jones industrial average was down 253.16 points, or 2.20 percent, at 11,240.41. The S&P 500 Index was down 30.46 points, or 2.53 percent, at 1,173.96. The Nasdaq Composite Index was down 65.71 points, or 2.58 percent, at 2,480.33. Friday marked the S&P's biggest drop in two weeks. Despite the day's sharp decline, stocks were only modestly lower for the week. For the week, the Dow fell 0.4%, the S&P lost 0.2%, and the Nasdaq was flat. Quick Stats on world markets DOW opened this week at 11277 closing 37pts 0.4(%) lower at 11240 S&P 500 opened this week at 1175.10 closing 2pts  0.2(%) lower at 1173 USD Index opened this week at 73.77 closing 0.98pts 1.3(%) higher at 74.75 Gold opened this week at 1818.95 closing 57.95 dollars 3.2(%) higher at 1876.9 Oil opened this week at 85.38 closing 1.07dollars 1.3(%) higher at 86.45

Week in Review for Financial Week Aug 8-12

Each day of this week has seen the Dow Jones industrial average swing at least 400 points. The week started with a 634-point plunge Monday responding to S&P’s Downgrade of US debt, but on Tuesday, the Dow soared 429 points after the Federal Reserve's announcement on the economy and interest rates Tuesday. The Dow bounced up 100 points, then fell 400 points, and then roared back more than 600 points — all within an hour and a half. Wednesday showed the Dow continuing its free-fall erasing all of Tuesday’s gains and some with a 520 point decline. Global financial markets rebounded sharply Thursday after a drubbing Wednesday, extending one of the most volatile streaks in history for stocks. The Dow Jones Industrial Average surged 423 points. It marked the first time in the index's 115-year history that it has moved by more than 400 points for four consecutive days. Friday ended with a 125 point rally in the Dow ending the week  just 1.5% lower, surprising after the volatile week we have had.
The current market mayhem was kicked off by concerns about a wide range of economic problems, including seemingly intractable unemployment in the U.S., political paralysis in Washington, continuing weakness in the financial system and over-extended European governments. The sheer number of moving parts that investors are trying to keep their eyes on has made it hard to stay focused on any one problem.  With many economists now fearing the recovery is in jeopardy of reversing into recession, it may be some time before Wall Street can find its footing again. Ultimately, stock markets are driven by corporate earnings which are improving.