Markets climb to 2 ½ year highs, what’s next? Ken Mahoney
Wall Street started last week holding its breath while waiting to see whether Hosni Mubarak would step down as Egypt’s president. Bowing to pro-democracy protests, Mubarak resigned on Friday, ending 30 years of authoritarian rule in the Middle East’s most populous country.
As fireworks burst over Cairo’s Tahrir Square, there was a collective sigh of relief on Wall Street, while the benchmark averages rose to finish Friday’s session with weekly gains. U.S. stocks climbed to fresh 2 1/2-year closing highs after the resignation of Mubarak removed a layer of uncertainty from global markets. The Dow had a weekly advance of 1.5%, while the S&P 500 rose 1.4% and the Nasdaq added 1.5%.
Analysts and investors agree that Mubarak’s resignation dramatically reduces geopolitical risk and uncertainty from the region.
Reflecting this, oil prices fell following the news in Egypt, with crude dropping to $85.16 a barrel in midday trading Friday. Other dollar-denominated commodities, including gold and silver, also drifted lower following Mubarak's resignation. Gold prices slid $5.30, settling at $1,357.20 an ounce.
On another topic, how does starting a new week on St. Valentine’s Day traditionally affect the markets? Interestingly, the “day of love” hasn’t customarily shown much “love” to investors; at least when using the S&P 500 index as a gauge. According to Howard Silverblatt, a senior index analyst at S&P Indices, going back to 1928, February 14 trading days only notched gains on the S&P 38.7% of the time against a historical daily rate of 52.03%. Here’s an interesting caveat though – in looking at the 11 Valentine’s Days that occurred on the first trading day of the week, the S&P 500 logged a gain 63.4% of the time. While we’re certainly not trying to make a prediction, it is interesting to see what history can teach us about market behaviors.
From war and peace one week, to love and chocolates the next, it just goes to show that almost any world event has potential to affect people’s investments. Like everything in life, weathering all the little ups and downs requires intelligence, patience, and a cool head.
ECONOMIC CALENDAR:
Tuesday – Retail Sales, Empire State Mfg. Survey, Import and Export Prices, Redbook, Treasury International Capital, Business Inventories, Housing Market Index Wednesday – Housing Starts, Producer Price Index, Industrial Production, EIA Petroleum Status Report, FOMC Minutes
Thursday – Consumer Price Index, Jobless Claims, Industrial Production, Leading Indicators, Philadelphia Fed Survey
Data as of 02/11/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 1.39 5.69 23.2 0.98 0.11
Dow 1.50 6.01 20.9 2.48 1.38
NASDAQ 1.45 5.90 29.0 4.84 1.37
MSCI EAFE 0.07 4.48 17.6 1.71 N/A
10-year Treasury Note (Yield Only) 3.65 N/A 3.73 4.58 5.02
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
HEADLINES:
Pandora Media Inc., filed papers Friday to raise as much as $100 million in an initial public offering of stock. Pandora offers an Internet service that creates playlists of songs based on user feedback. The Oakland, Calif.-based company said it now has more than 80 million registered users, and “a more than 50% share of all Internet radio listening time among the top 20 stations and networks in the United States.”
The euro fell to a three-week low against the dollar as speculation increased that Portugal will follow Ireland in tapping the European Financial Stability Facility. Yields on 10-year Portuguese debt climbed on Feb. 10 to 7.64 percent, the highest level since the introduction of the euro in 1999.
U.S. consumer sentiment rose to its highest level in eight months in early February, boosted by recent tax cuts and optimism about the economy. The preliminary February reading for the overall index on consumer sentiment came in at 75.1, up from 74.2 in January, the highest level since June 2010.
The Commerce Department says the deficit in December increased 5.9% to $40.6 billion. It grew because the 2.6% gain in imports outpaced the 1.8% rise in exports. For 2010, the U.S. trade deficit rose to $497.8 billion, a 32.8% surge and the biggest annual percentage gain since 2000.
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Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!
*Stock investing involves market risk including loss of principal. The fast price swings of commodities will result in significant volatility in an investor’s holdings. Government bonds and Treasury Bills are guaranteed by the US Government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
Senin, 14 Februari 2011
Senin, 07 Februari 2011
Investor’s are more optimistic
In spite of ongoing turmoil in Egypt and the Middle East, the markets continued their gain last week. For the period ending February 4th, the Dow, the S&P 500, and the Nasdaq all climbed reflecting elevated optimism in the markets. The AAII Sentiment Survey for last week shows that 51.5% of investors are feeling bullish, up 9.5% from the week of January 24th. That’s well above the historical average of 39%.
Indeed, this optimism is even more remarkable in light of last week’s jobs report which has been subject to conflicting opinions and interpretations. Case in point: According to a MarketWatch headline from Friday, the “job crisis isn’t over”, while a cnnmoney.com headline from the same day touted that, “the job market is getting better.” Each headline could be considered accurate, but clearly they offer different slants. Though the rate of hiring did not show a notable increase, the unemployment rate still fell to 9.0% - bad news and good news at the same time. Some analysts predict that bad weather across the U.S. is partially to blame, with more than 850,000 workers prevented from working at the time the survey was conducted. Other explanations have also been cited, and as a result, it appears that many are waiting for February’s report for clarification before jumping to conclusions.
Recent events, both within the U.S. and internationally, illustrate a noteworthy aspect of investing: It is impossible to predict how the stock market will react to news. Such an optimistic week in light of Egyptian strife and a conflicting jobs report is a pleasant surprise. It seems that the market has had time to price in geopolitical risks in Egypt and sluggish jobs growth and found such factors to be no immediate threat. Clearly, the headlines and the stock market do not always move in tandem. This is a good fact to remember when evaluating how much credence should be given to sensational news reports.
ECONOMIC CALENDAR
Tuesday – Redbook
Wednesday – Bank Reserve Settlement, EIA Petroleum Status
Thursday – BOE Announcement, Jobless Claims, Wholesale Trades, Treasury Budget Friday – International Trade, Consumer Sentiment
Data as of 02/04/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 2.71 4.23 23.3 0.74 -0.29
Dow 2.27 4.45 20.9 2.41 1.13
NASDAQ 3.07 4.39 30.3 4.48 0.41
MSCI EAFE 3.16 3.93 15.7 -0.41 1.56
10-year Treasury Note (Yield Only) 3.33 N/A 3.61 4.53 5.14
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
HEADLINES:
The Green Bay Packers won its fourth Superbowl title in a 31-25 victory over the Pittsburgh Steelers. The Vince Lombardi Trophy is headed back to Titletown for the first time in 14 years.
Super Bowl-related consumer spending will reach $10.1 billion this year, the National Retail Federation says. The Washington-based trade group cites a survey conducted by its Retail Advertising and Marketing Association division that says the average consumer will spend $59.33 on game-related merchandise, apparel and snacks, up from $52.63 last year.
Hackers have repeatedly penetrated the computers running Nasdaq during the past year. Though the exchange’s trading platform was not violated and no information has been compromised, a federal investigation is underway.
Businesses’ unemployment-insurance payments rose 37% in 2010. Last year, the amount employers paid into state unemployment-insurance funds rose 34%. Combined with the increase in total wages, businesses paid out $43 billion.
On Friday, Bank of America appointed a new foreclosure and loan modifications czar, and created a new unit to oversee problem home loans. The new unit creates a seventh major division at the bank and will be overseen by Terry Laughlin. The move splits the largest U.S. bank by assets’ mortgage business: one focused on new and current mortgages, and another dedicated to foreclosures.
Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!
*Stock investing involves market risk including loss of principal. The fast price swings of commodities will result in significant volatility in an investor’s holdings. Government bonds and Treasury Bills are guaranteed by the US Government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
In spite of ongoing turmoil in Egypt and the Middle East, the markets continued their gain last week. For the period ending February 4th, the Dow, the S&P 500, and the Nasdaq all climbed reflecting elevated optimism in the markets. The AAII Sentiment Survey for last week shows that 51.5% of investors are feeling bullish, up 9.5% from the week of January 24th. That’s well above the historical average of 39%.
Indeed, this optimism is even more remarkable in light of last week’s jobs report which has been subject to conflicting opinions and interpretations. Case in point: According to a MarketWatch headline from Friday, the “job crisis isn’t over”, while a cnnmoney.com headline from the same day touted that, “the job market is getting better.” Each headline could be considered accurate, but clearly they offer different slants. Though the rate of hiring did not show a notable increase, the unemployment rate still fell to 9.0% - bad news and good news at the same time. Some analysts predict that bad weather across the U.S. is partially to blame, with more than 850,000 workers prevented from working at the time the survey was conducted. Other explanations have also been cited, and as a result, it appears that many are waiting for February’s report for clarification before jumping to conclusions.
Recent events, both within the U.S. and internationally, illustrate a noteworthy aspect of investing: It is impossible to predict how the stock market will react to news. Such an optimistic week in light of Egyptian strife and a conflicting jobs report is a pleasant surprise. It seems that the market has had time to price in geopolitical risks in Egypt and sluggish jobs growth and found such factors to be no immediate threat. Clearly, the headlines and the stock market do not always move in tandem. This is a good fact to remember when evaluating how much credence should be given to sensational news reports.
ECONOMIC CALENDAR
Tuesday – Redbook
Wednesday – Bank Reserve Settlement, EIA Petroleum Status
Thursday – BOE Announcement, Jobless Claims, Wholesale Trades, Treasury Budget Friday – International Trade, Consumer Sentiment
Data as of 02/04/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 2.71 4.23 23.3 0.74 -0.29
Dow 2.27 4.45 20.9 2.41 1.13
NASDAQ 3.07 4.39 30.3 4.48 0.41
MSCI EAFE 3.16 3.93 15.7 -0.41 1.56
10-year Treasury Note (Yield Only) 3.33 N/A 3.61 4.53 5.14
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
HEADLINES:
The Green Bay Packers won its fourth Superbowl title in a 31-25 victory over the Pittsburgh Steelers. The Vince Lombardi Trophy is headed back to Titletown for the first time in 14 years.
Super Bowl-related consumer spending will reach $10.1 billion this year, the National Retail Federation says. The Washington-based trade group cites a survey conducted by its Retail Advertising and Marketing Association division that says the average consumer will spend $59.33 on game-related merchandise, apparel and snacks, up from $52.63 last year.
Hackers have repeatedly penetrated the computers running Nasdaq during the past year. Though the exchange’s trading platform was not violated and no information has been compromised, a federal investigation is underway.
Businesses’ unemployment-insurance payments rose 37% in 2010. Last year, the amount employers paid into state unemployment-insurance funds rose 34%. Combined with the increase in total wages, businesses paid out $43 billion.
On Friday, Bank of America appointed a new foreclosure and loan modifications czar, and created a new unit to oversee problem home loans. The new unit creates a seventh major division at the bank and will be overseen by Terry Laughlin. The move splits the largest U.S. bank by assets’ mortgage business: one focused on new and current mortgages, and another dedicated to foreclosures.
Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!
*Stock investing involves market risk including loss of principal. The fast price swings of commodities will result in significant volatility in an investor’s holdings. Government bonds and Treasury Bills are guaranteed by the US Government as to the timely payment of principal and interest and, if held to maturity, offer a fixed rate of return and fixed principal value.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
Senin, 31 Januari 2011
What impact will Egypt have on the Markets? Ken Mahoney
What impact will Egypt have on the Markets? Ken Mahoney
U.S. stocks’ winning streak ended Friday amid news of political strife in Egypt. The Dow closed down 1.39%, the S&P 500 declined 1.79%, and the Nasdaq fell 2.48% -- the biggest single day losses in nearly six months. This pullback left many investors asking what political strife in Egypt has to do with the U.S. stock market. You may be wondering the same thing. So what is the answer?
While many factors are involved, the primary issue is that the stock market hates uncertainty. It’s an old adage, but one that is often true. On a fundamental level, the stock market is based on people’s speculation about what is going to happen in the future. Uncertainty about the future leads many to sell and/or sit on the sideline because they aren’t comfortable investing their money until they feel like they know what is ahead. For the time being, the situation in Egypt is anything but certain.
Uncertainty, combined with Egypt’s position along one of the busiest trade routes in the world, had a combined affect on the markets last week. The price of oil rose with fears about the stability of maritime operations on the Suez Canal. As a major trade route, any interruption or closure has the potential to create a spike in oil and energy prices. As a result, analysts predict a measure of volatility until calm is restored. As we saw on Friday, when volatility increases, a flight to safety often drives uneasy investors into so-called “safe havens”.
The affect of Egyptian politics on U.S. stock markets serves as a reminder that we are part of an intricate international economy. The ups and downs of the markets are rarely predictable, and a measure of risk is to be expected. Historically, stocks have outperformed all other investments, but in the short-term, fluctuations are inevitable. At times like this, rest assured that we will continue to monitor the situation abroad and bring you relevant information as soon as it becomes available.
ECONOMIC CALENDAR:
Monday – Personal Income and Outlays, Chicago PMI Tuesday – Motor Vehicle Sales, Redbook, ISM Mfg Index, Construction Spending
Wednesday – ADP Employment Report, EIA Petroleum Status Report
Thursday – ECB Announcement, Jobless Claims, Productivity and Costs, Factory Orders, ISM Non-Mfg Index Friday – Employment Situation
HEADLINES:
The United Nations reported that international food prices rose by an all-time high of 25% in December. The rising costs for staples like rice, wheat, and maize have been affected by bad weather in Australia and Russia, rising incomes in China and India, and a push for biofuels. The sharp inflation in food costs has sparked political unrest throughout the Middle East, including Egypt and Tunisia.
The GDP figures for the last quarter showed that consumer spending was up a strong 4.4% on an annualized basis, and final sales surged 7.1%, its largest jump in nearly 30 years. Trade was a big contributor to the economic gains, with exports surging 8.5% and imports declining 13.6%. Inventories grew by $121 billion in the third quarter, but only rose by $7 billion in the final three months of the year.
Comcast Corp., took control of NBC Universal shortly before midnight on Friday. The deal comes after the government shackled Comcast’s behavior in the coming years to protect online video services such as Netflix and Hulu. The takeover gave Comcast 51% control of NBC Universal, which owns the nation's fourth-ranked broadcaster, NBC, the Universal Pictures movie studio and related theme parks, and a bevy of cable channels including Bravo, E! and USA.
Chinese authorities have blocked the word "Egypt" from searches on Twitter-like microblogging sites in an indication of concern among Communist Party leaders that the unrest there could encourage similar calls for political reform in China.
Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
U.S. stocks’ winning streak ended Friday amid news of political strife in Egypt. The Dow closed down 1.39%, the S&P 500 declined 1.79%, and the Nasdaq fell 2.48% -- the biggest single day losses in nearly six months. This pullback left many investors asking what political strife in Egypt has to do with the U.S. stock market. You may be wondering the same thing. So what is the answer?
While many factors are involved, the primary issue is that the stock market hates uncertainty. It’s an old adage, but one that is often true. On a fundamental level, the stock market is based on people’s speculation about what is going to happen in the future. Uncertainty about the future leads many to sell and/or sit on the sideline because they aren’t comfortable investing their money until they feel like they know what is ahead. For the time being, the situation in Egypt is anything but certain.
Uncertainty, combined with Egypt’s position along one of the busiest trade routes in the world, had a combined affect on the markets last week. The price of oil rose with fears about the stability of maritime operations on the Suez Canal. As a major trade route, any interruption or closure has the potential to create a spike in oil and energy prices. As a result, analysts predict a measure of volatility until calm is restored. As we saw on Friday, when volatility increases, a flight to safety often drives uneasy investors into so-called “safe havens”.
The affect of Egyptian politics on U.S. stock markets serves as a reminder that we are part of an intricate international economy. The ups and downs of the markets are rarely predictable, and a measure of risk is to be expected. Historically, stocks have outperformed all other investments, but in the short-term, fluctuations are inevitable. At times like this, rest assured that we will continue to monitor the situation abroad and bring you relevant information as soon as it becomes available.
ECONOMIC CALENDAR:
Monday – Personal Income and Outlays, Chicago PMI Tuesday – Motor Vehicle Sales, Redbook, ISM Mfg Index, Construction Spending
Wednesday – ADP Employment Report, EIA Petroleum Status Report
Thursday – ECB Announcement, Jobless Claims, Productivity and Costs, Factory Orders, ISM Non-Mfg Index Friday – Employment Situation
HEADLINES:
The United Nations reported that international food prices rose by an all-time high of 25% in December. The rising costs for staples like rice, wheat, and maize have been affected by bad weather in Australia and Russia, rising incomes in China and India, and a push for biofuels. The sharp inflation in food costs has sparked political unrest throughout the Middle East, including Egypt and Tunisia.
The GDP figures for the last quarter showed that consumer spending was up a strong 4.4% on an annualized basis, and final sales surged 7.1%, its largest jump in nearly 30 years. Trade was a big contributor to the economic gains, with exports surging 8.5% and imports declining 13.6%. Inventories grew by $121 billion in the third quarter, but only rose by $7 billion in the final three months of the year.
Comcast Corp., took control of NBC Universal shortly before midnight on Friday. The deal comes after the government shackled Comcast’s behavior in the coming years to protect online video services such as Netflix and Hulu. The takeover gave Comcast 51% control of NBC Universal, which owns the nation's fourth-ranked broadcaster, NBC, the Universal Pictures movie studio and related theme parks, and a bevy of cable channels including Bravo, E! and USA.
Chinese authorities have blocked the word "Egypt" from searches on Twitter-like microblogging sites in an indication of concern among Communist Party leaders that the unrest there could encourage similar calls for political reform in China.
Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
Senin, 24 Januari 2011
Stock prices and gas prices both are rising, what happens next? By Ken Mahoney
Stock prices and gas prices both are rising, what happens next? By Ken Mahoney
While the recovery continues to burn brighter, it’s no thanks to the rising cost of gasoline. Most consumers are cringing over prices at the pump and, as a nationwide economic marker, it affects nearly everyone.
Gas prices hit almost $3.12/gallon on Friday, less than a dollar below the all-time high of about $4.11/gallon in July 2008. Current prices have risen 12 cents a gallon (4%) in the last month alone and 39 cents (14%) over the last year. Crude oil has risen on a similar track and is currently trading at just under $90 a barrel.
Though American consumers are paying the price, international oil demand and lack of supply are primarily responsible for the rising cost. Last year, worldwide demand hit a record of more than 87 million barrels a day, largely driven by strong growth in India, China, and the Middle East. Simultaneously, supply was constricted by the drilling moratorium in the Gulf of Mexico following the BP disaster, slow production growth in non-OPEC countries, and OPEC production controls.
Gas prices are proving to be a critical, but unpredictable element in the economic recovery. Analysts are predicting prices to range from $3.20 to $3.75/gallon by spring, just when Americans typically hit the road. Just as positive consumer sentiment can be tempered by the daily reminders of rising prices, there is also an unknown tipping point for when those prices take a toll on spending.
While all this talk about rising gas prices may have you feeling less than enthusiastic, the overall economic outlook is still positive and the stock market is performing well. While some indexes fell slightly for the week, the Dow climbed 0.72%, continuing its longest winning streak since April of last year. At least for now, rising gas prices aren’t creating a significant drag on the economic recovery.
ECONOMIC CALENDAR:
Tuesday – Redbook, S&P Case Shiller HPI, Consumer Confidence
Wednesday – New Home Sales, EIA Petroleum Status Report
Thursday – Durable Goods Orders, Jobless Claims, Pending Home Sales Friday – GDP, Employment Cost Index, Consumer Sentiment
Data as of 01/21/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 -0.76 2.04 14.9 0.35 -0.44
Dow 0.72 2.54 14.3 2.26 1.21
NASDAQ -2.39 1.38 18.7 3.93 -0.29
MSCI EAFE -0.35 1.83 7.12 -0.43 1.32
10-year Treasury Note (Yield Only) 3.33 N/A 3.61 4.36 5.17
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
HEADLINES:
Facebook raised $1.5 billion from Goldman Sachs and Digital Sky Technologies, giving the company an estimated value of $50 billion. Facebook confirmed that it will begin filing public financial reports by April 2012, a move likely indicative of an IPO.
A 1963 Pontiac ambulance that supposedly carried the body of President John F. Kennedy after his assassination was sold at a Scottsdale, Ariz., auction Saturday night for $132,000.
Existing home sales jumped 12% in December, the fifth month of gains in the past six months. While the rates are higher than expected, the median price of homes has fallen by 1% and is still down 2.9% from a year ago.
Thirty-second advertising spots for 2011’s Super Bowl XLV will cost about $3 million each. This year’s ads contain a record number from the auto industry, while the largest advertisers include Anheuser-Busch and Dot-com firms. Many will include online features with contest components.
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Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
While the recovery continues to burn brighter, it’s no thanks to the rising cost of gasoline. Most consumers are cringing over prices at the pump and, as a nationwide economic marker, it affects nearly everyone.
Gas prices hit almost $3.12/gallon on Friday, less than a dollar below the all-time high of about $4.11/gallon in July 2008. Current prices have risen 12 cents a gallon (4%) in the last month alone and 39 cents (14%) over the last year. Crude oil has risen on a similar track and is currently trading at just under $90 a barrel.
Though American consumers are paying the price, international oil demand and lack of supply are primarily responsible for the rising cost. Last year, worldwide demand hit a record of more than 87 million barrels a day, largely driven by strong growth in India, China, and the Middle East. Simultaneously, supply was constricted by the drilling moratorium in the Gulf of Mexico following the BP disaster, slow production growth in non-OPEC countries, and OPEC production controls.
Gas prices are proving to be a critical, but unpredictable element in the economic recovery. Analysts are predicting prices to range from $3.20 to $3.75/gallon by spring, just when Americans typically hit the road. Just as positive consumer sentiment can be tempered by the daily reminders of rising prices, there is also an unknown tipping point for when those prices take a toll on spending.
While all this talk about rising gas prices may have you feeling less than enthusiastic, the overall economic outlook is still positive and the stock market is performing well. While some indexes fell slightly for the week, the Dow climbed 0.72%, continuing its longest winning streak since April of last year. At least for now, rising gas prices aren’t creating a significant drag on the economic recovery.
ECONOMIC CALENDAR:
Tuesday – Redbook, S&P Case Shiller HPI, Consumer Confidence
Wednesday – New Home Sales, EIA Petroleum Status Report
Thursday – Durable Goods Orders, Jobless Claims, Pending Home Sales Friday – GDP, Employment Cost Index, Consumer Sentiment
Data as of 01/21/2011 1-Week YTD 1-Year 5-Year 10-Year
Standard & Poor's 500 -0.76 2.04 14.9 0.35 -0.44
Dow 0.72 2.54 14.3 2.26 1.21
NASDAQ -2.39 1.38 18.7 3.93 -0.29
MSCI EAFE -0.35 1.83 7.12 -0.43 1.32
10-year Treasury Note (Yield Only) 3.33 N/A 3.61 4.36 5.17
Notes: All index returns exclude reinvested dividends, and the 5-year and 10-year returns are annualized.
Sources: Yahoo! Finance, MSCI Barra. Past performance is no guarantee of future results.
Indices are unmanaged and cannot be invested into directly. NA means not available.
HEADLINES:
Facebook raised $1.5 billion from Goldman Sachs and Digital Sky Technologies, giving the company an estimated value of $50 billion. Facebook confirmed that it will begin filing public financial reports by April 2012, a move likely indicative of an IPO.
A 1963 Pontiac ambulance that supposedly carried the body of President John F. Kennedy after his assassination was sold at a Scottsdale, Ariz., auction Saturday night for $132,000.
Existing home sales jumped 12% in December, the fifth month of gains in the past six months. While the rates are higher than expected, the median price of homes has fallen by 1% and is still down 2.9% from a year ago.
Thirty-second advertising spots for 2011’s Super Bowl XLV will cost about $3 million each. This year’s ads contain a record number from the auto industry, while the largest advertisers include Anheuser-Busch and Dot-com firms. Many will include online features with contest components.
Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!
Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
Selasa, 18 Januari 2011
How long can the bull market ‘winning streak’ continue By Ken Mahoney
How long can the bull market ‘winning streak’ continue? By Ken Mahoney
The bluebird of happiness has landed in the headlines again. In the longest winning streak since April 2010, the Dow posted its seventh straight week of gains as investors fly in the face of lackluster economic data. Driven by a rally in the financial sector, U.S. stocks reached their best closing levels in two and a half years.
Despite higher than expected unemployment numbers, more Americans are dining out, traveling, and paying down their debt – all signs that people are feeling more confident in their spending ability. The National Retail Federation reported that holiday retail sales showed the biggest percentage gain in six years, rising 5.7%.
While the recent increase in optimism is a relief, it is prudent to remember that too much optimism can be dangerous. It is especially during times when euphoria is spreading that we need to be realistic and balanced in our expectations. In the words of noted stock investor, businessman and philanthropist Sir John Templeton, “Bull markets are born in pessimism, grow on skepticism, mature on optimism and die on euphoria.” Despite recent positive developments, many investors remember these timely words. There are still a number of challenges worth keeping an eye on, such as sovereign debt concerns in Europe, and the rising cost of basic goods. Keeping such issues in mind helps maintain a balanced approach toward investing.
While we are not recommending that any specific action be taken, we are highlighting the importance of avoiding the type of irrational exuberance that leads to poor, emotional decision making. If you have questions, please remember that we are always here to help you balance the risks and the rewards associated with investing.
.
HEADLINES:
The U.S. federal government will bill states $1.3 billion in interest on jobless-pay loans. Thirty states owe money to the federal government for their unemployment programs. The first interest payment on the borrowed $41 billion is due in September.
Wall Street is facing its first blitz of fourth-quarter earnings, with Bank of America Corp., General Electric Co. and Apple Inc. among the industry titans slated to report in coming days. With the U.S. financial markets closed Monday for Martin Luther King Jr. Day, Wall Street faces a holiday-shortened week.
BP and Russia's state-controlled Rosneft agreed to a share swap under which they would jointly explore for offshore oil and gas, in a deal that immediately raised concerns in the United States about Russia's global oil ambitions. The deal gives BP access to highly sought after reserves of oil and natural gas in Russia's remote Arctic region. BP will trade 5% of its shares, for 9.5% of Rosneft.
The People's Bank of China raised the level of reserves that banks are required to hold by one half of a percentage point. Major Chinese banks will have to set aside 19% of their reserves and small and medium banks will have to keep 15.5% of their deposits as reserves, a record high for the country's deposit-taking institutions. This is the seventh time in the last year that the bank has used higher reserve standards to try to pull money out of the economy and tame rising prices.
Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!
Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
The bluebird of happiness has landed in the headlines again. In the longest winning streak since April 2010, the Dow posted its seventh straight week of gains as investors fly in the face of lackluster economic data. Driven by a rally in the financial sector, U.S. stocks reached their best closing levels in two and a half years.
Despite higher than expected unemployment numbers, more Americans are dining out, traveling, and paying down their debt – all signs that people are feeling more confident in their spending ability. The National Retail Federation reported that holiday retail sales showed the biggest percentage gain in six years, rising 5.7%.
While the recent increase in optimism is a relief, it is prudent to remember that too much optimism can be dangerous. It is especially during times when euphoria is spreading that we need to be realistic and balanced in our expectations. In the words of noted stock investor, businessman and philanthropist Sir John Templeton, “Bull markets are born in pessimism, grow on skepticism, mature on optimism and die on euphoria.” Despite recent positive developments, many investors remember these timely words. There are still a number of challenges worth keeping an eye on, such as sovereign debt concerns in Europe, and the rising cost of basic goods. Keeping such issues in mind helps maintain a balanced approach toward investing.
While we are not recommending that any specific action be taken, we are highlighting the importance of avoiding the type of irrational exuberance that leads to poor, emotional decision making. If you have questions, please remember that we are always here to help you balance the risks and the rewards associated with investing.
.
HEADLINES:
The U.S. federal government will bill states $1.3 billion in interest on jobless-pay loans. Thirty states owe money to the federal government for their unemployment programs. The first interest payment on the borrowed $41 billion is due in September.
Wall Street is facing its first blitz of fourth-quarter earnings, with Bank of America Corp., General Electric Co. and Apple Inc. among the industry titans slated to report in coming days. With the U.S. financial markets closed Monday for Martin Luther King Jr. Day, Wall Street faces a holiday-shortened week.
BP and Russia's state-controlled Rosneft agreed to a share swap under which they would jointly explore for offshore oil and gas, in a deal that immediately raised concerns in the United States about Russia's global oil ambitions. The deal gives BP access to highly sought after reserves of oil and natural gas in Russia's remote Arctic region. BP will trade 5% of its shares, for 9.5% of Rosneft.
The People's Bank of China raised the level of reserves that banks are required to hold by one half of a percentage point. Major Chinese banks will have to set aside 19% of their reserves and small and medium banks will have to keep 15.5% of their deposits as reserves, a record high for the country's deposit-taking institutions. This is the seventh time in the last year that the bank has used higher reserve standards to try to pull money out of the economy and tame rising prices.
Share the Wealth of Knowledge!
Please share this market update with family, friends, or colleagues. If you would like us to add them to our list, simply click on the "Forward email" link below. We love being introduced!
Insert your broker/dealer disclosures here. i.e. Securities offered through “Your B/D Name Here,” Member FINRA/SIPC.
Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The Standard & Poor's 500 (S&P 500) is an unmanaged group of securities considered to be representative of the stock market in general.
The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange and the Nasdaq. The DJIA was invented by Charles Dow back in 1896.
The MSCI EAFE Index was created by Morgan Stanley Capital International (MSCI) that serves as a benchmark of the performance in major international equity markets as represented by 21 major MSCI indexes from Europe, Australia and Southeast Asia.
The 10-year Treasury Note represents debt owed by the United States Treasury to the public. Since the U.S. Government is seen as a risk-free borrower, investors use the 10-year Treasury Note as a benchmark for the long-term bond market.
Google Finance is the source for any reference to the performance of an index between two specific periods.
Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
Past performance does not guarantee future results.
You cannot invest directly in an index.
Consult your financial professional before making any investment decision.
These are the views of Platinum Advisor Marketing Strategies, LLC, and not necessarily those of the named representative or named Broker dealer, and should not be construed as investment advice. Neither the named representative nor the named Broker dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial advisor for further information.
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