Indices Held Strong In January But Futures Pointing Lower

February 3, 2012 Stock Markets
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The benchmark index of the USA ended the month of January on a largely positive performance of almost 5%.

Reassured by an improvement in the European and American support of economic statistics, investors have returned en masse in the financial markets and especially on the major U.S. equities.

However, the month of February may start in a more cautious note according to recent futures prices. While the SP 500 is close to its annual summits in 2011, quarterly publications are continuing across the Atlantic, mixed with accounts of oil giant Exxon Mobil or the retail giant Amazon on the Internet. In addition, the latest U.S. statistics have been disappointing, especially with the Chicago PMI index worse than expected, an index of consumer confidence fell sharply and a drop in the S & P Case-Shiller U.S. prices of real estate .

In conclusion, the optimism seen in the month of January in the equity markets will be tested in the coming weeks. The U.S. employment report expected Friday will come and confirm the current strength of the U.S. economy.

Technically, the dynamics of the SP 500 remains bullish on daily data over the 1300 points, coinciding with the threshold to 20 days moving average or above 1290 points (lower ascending upward trend started in late November 2011). Near the peaks of 2011 and 1350 line key points, the operators decided to take a break these days. We will monitor the output of the 1290/1350 range, a break of 1290 should lead to consolidation points in the direction of 1265 points. On the upside, the crossing points of 1350/1360 would open the way to 1400 points.

Stocks Open Lower In The US With Penny Stocks Gaining More Than Bluechips

January 8, 2012 Stock Markets
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U.S. stocks open on a hesitant note Friday, the announcement of monthly figures of employment than expected failed to allay concerns about the economic and financial situation of the euro area.

In early trade, the Dow Jones drops 0.14% (17 points) at 12,400 points. The Standard & Poor’s, largest, fell by 0.1% (1 point) to 1279 points while the Nasdaq composite is at equilibrium (0.02%) or 2670 points.

Job creation outside the agricultural sector amounted to 200,000 last month in the United States, while the market was expecting 150,000. In addition, the unemployment rate fell to 8.5% of the workforce, a three-year low, against 8.7% in November.

Values​​, Alcoa drops 2.3%. The first U.S. producer of aluminum will reduce its global capacity by 12%.

Specific situations, the pharmaceutical company Durect sees his tumble over 26%. Its experimental treatment against the post-operative pain has not fulfilled the main goal in the final phase of clinical testing. Other smaller penny stocks were also on the rise. Investors when feeling speculative for fast gains over coming weeks turn to these companies.

Fear In The Stock Market Continues As Europe Agrees Treaty

December 13, 2011 Stock Markets
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While European leaders agreed on a new treaty that member states must be rapidly towards greater economic integration and fiscal crisis is still raging in Europe and fears of a recession likely to affect the values on Wall Street.

Certain devalued companies on the stock market, such as Texas Instruments and DuPont, which have lowered their forecasts suggest that the impact of the European crisis are already felt across the Atlantic.

“We are beginning to feel the collateral damage of the situation in Europe, resulting in lower earnings forecasts,” said Peter Bookvar, strategist at Miller Tabak & Co.

The estimates of earnings growth of listed companies on the S & P 500 is the fourth in net losses since July. According to Thomson Reuters, the profits of these companies are expected to grow 10.1% in the fourth quarter against an estimate of 15% in early October and 17.6% in July.

Friday, Wall Street ended the session sharply higher, buoyed by the willingness of almost all countries of the European Union to show more fiscal restraint.

Countries in the euro area have launched a major overhaul which, after signing a new treaty to which only Great Britain has decided not to associate, to bring them rapidly towards greater economic integration and budget.

At the end of the sixteenth highest since the start of the debt crisis in late 2009 and after 10 hours of intense negotiations, they agreed on this new “pact”, which is based primarily on a tighter control of budgets and a limited reform of the future European Stability Mechanism (MES), which will now be supported by the ECB.

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