logo
  Join        Login             Stock Quote

Hopes For A China Growth Rebound

 October 24, 2012 04:38 PM
 


Markets are only slightly higher following yesterday's sharp selloff.  In economic news, new home sales for September came in better than expected at 389,000 units.  And the FHFA said the Housing Price Index for August rose by 0.7%.

Other than that the focus has mainly been on all of the companies reporting earnings this week.  I think the surprise this morning is Facebook (FB), where sentiment had grown extremely cautious.  But investors liked what they heard on the conference call about the ability to monetize mobile ads and the stock has spiked more than 20% this morning.

Stocks rising on earnings: FB, LL, DOW, GILD, BA, LMT, TUP

Stocks falling on earnings: T, BWLD, NFLX, EAT, ATI, NEE, IACI, KMB, BMY, GLW, LO

[Related -Gold hasn’t lost its allure in my portfolio]

Overnight most Asian markets were lower.  China bucked the weakness after its HSBC Manuf. PMI reading came in above expectations at 49.1.  That still is in the contraction zone, but its the highest reading in 3 months so folks are getting their hopes up that China is stabilizing and could be poised to see a pickup in economic growth.  I remain cautious on China.

Europe's markets are mixed this morning.  Most were lower initially after PMI readings for France, Germany, and Italy all came in below expectations.  That pushed markets lower early but many have rebounded since.

The dollar is higher again today, which is weighing on commodities.  Oil prices are weaker to $85.80.  Gold prices are lower near $1705.  Copper prices are lower also and do not trade very well given the sentiment that China is picking up.

[Related -Netflix, Inc. (NFLX) Q4 Earnings Preview: What To Watch?]

The 10-year yield is getting a rebound to 1.79%.  And the VIX is down slightly near 18.35 after yesterday's spike to 19.65 and reversal from there.

Also, the FOMC announcement comes out today but I don't expected any changes from its current stance for rates to stay at 0.00% - 0.25% and the QE program to remain at $40 billion.

Trading comment: The action in the market yesterday was pretty bearish.  The SPX moved deeper below its 50-day moving average.  Most leading stocks remain in corrections.  So now is the time to be patient.  Wait for bearish sentiment to build, wait for stocks to find some support, and look for leading stocks to begin to show signs of rebounding.  We continue to be positioned defensively for the near-term.

KAM Advisors has long positions in FB, NEE, BMY

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageReversals After a Gap on the Open Could Mean Anything

Yesterday stock indexes gapped up on the open but then reversed course to close sharply lower. This type of read on...

article imageJobless Claims Fall To 15-Year Low

After reading today’s weekly update on jobless claims the Fed’s comment yesterday that “economic activity read on...

article imageGreece, EMU and Democracy

One more post on Greece, possibly not the last read on...

article imageA Tangled Tale Of Rate Hikes & Inflation Expectations

The Federal Reserve continues to signal that it will start raising interest rates later this year, read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.