Posts Tagged ‘surprise’

(Lee Siler) - For the week, stocks moved slightly higher despite the dollar showing some strength. Last week, we saw a paradigm change as the weak dollar trade subsided and was now trading in concert with stocks. It had been a long time since we've seen stocks and the dollar trade in the same direction. Well Friday's surprising employment data got the dollar moving. The fact that unemployment dropped to 10% from 10.2% was a huge surprise. Wall Street applauded the news. However, I'm not sure that this is the start of a trend. I still think unemployment is a major issue and will likely jump back up to over 10.2% over the next few months.

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(Lee Siler) - News that government owned Dubai World is in a financial crisis rocked stock markets worldwide. While our markets dropped more than 1.5% on a holiday shortened trading day, markets abroad took the bigger hit. After the dust settled, it appears that the U.S. has limited exposure in Dubai. However, the news is not as good in Europe. The talk is that the United Kingdom has the biggest exposure to this troubled state. Although Dubai World is owned by the country of Dubai, it is not guaranteed by the government. This should not be a surprise. All of the debt accumulated by Dubai World was accumulated with the understanding that it was not backed by the government. The good news is that the oil rich country and neighbor of Dubai, Abu Dhabi, said it would make sure the banks are solvent and lend some financial assistance.

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(Lee Siler) - The nation's unemployment rate jumped to over 10% for the first time since October 1983. The consensus estimate was 9.9%, but the continued lay-offs being handed out by corporate America made the number jump to 10.2%. The news has sent stock futures plunging from earlier levels.

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(Lee Siler) - Stock futures are mixed this morning, as Wall Street tries to digest a five day winning streak. On the 8th anniversary of the 9-11 terrorist attacks, the market will likely finish the week on a positive note. Consumer sentiment data will be released later this morning from the University of Michigan. This news has typically been a market mover and the market is expecting an improvement over last month. This number is a preliminary and will likely be adjusted up or down over the next few weeks.

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(Lee Siler) - This morning gold futures continue their tear, as the precious metal trades over $1000 per ounce, the highest level since March of 2008. Technical momentum and a weaker dollar are certainly adding fuel to the fire. Gold is not the only metal staging an impressive rally. Silver has rallied more than 30% over the past few months.

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(Lee Siler) - Stocks got hit yesterday, as we start the worst period for the market. It's no secret that based on history the stock market performs its worst during the month of September. So it should've been a surprise when the major averages sold off from start to finish on the first day of the month. I've been expecting this pullback for several weeks now. But, investors continued to buy shares despite and economy that is still on unsure footing.

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(Lee Siler) - So far earnings season has started out with a bang. Alcoa got things started by beating estimates last week. Then this morning all eyes were on Goldman Sachs, which their results knocked the cover off the ball. The company reported a 33% rise in quarterly profits on very strong trading results. Certainly a good second quarter for the stock market helped buoy their report. Remember, last month Goldman paid back the TARP money they borrowed and is now the last investment bank standing. Earnings came in at $4.93 a share versus First Call estimates of $3.54 a share. This earnings report was no surprise to Wall Street, as the stock traded up over $8 a share yesterday in anticipation of a blow out number.

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